Which of the following loans will typically offer the lowest interest rate? – 2017

which of the following loans will typically offer the lowest interest rate?

  1. Payday loan
  2. Federal Student Loan
  3. Private Loan
  4. Both A and C




Answer:  Federal Student Loan




Interest rates on Federal Stafford Loans are fixed. The current interest rates for new Federal Stafford Loans in 2015-2016 are 4.29% for undergraduate students and5.84% for graduate and professional students. Interest rates are the same for subsidized and unsubsidized Federal Stafford Loans.






Private student loans are not funded or subsidized by the federal government; instead, they are funded by banks, credit unions, or other types of lenders. The bank or lender – not the federal government – sets interest rates, loan limits, terms, and conditions of private student loans.

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