How to Increase a Student Loan Rate

When you sign up for a student loan, you also agree to the interest rate attached to the loan. Hopefully, you are able to shop around for the lowest possible rate; however, certain things can cause your interest rate to increase, which changes your payment amount and increases the total amount of money you owe.

Instructions

    • 1

      Pay after the due date. If you miss a payment or are late with one, you run the risk of raising your interest rate.

    • 2

      Extend your payment plan. Although your monthly payment is reduced, the amount you pay on the loan increases over time, as does your interest rate.

    • 3

      Pay under the full amount that is due. If you don't pay your full amount, your monthly payment is recorded as late and the interest rate increases.

    • 4

      Opt for a variable interest rate student loan. Although most student loans come with a fixed rate, some do start with a lower monthly payment and then increase the further you are into the repayment period.

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