APR Uncovered on International Student Loans
April 18th, 2014 by Jennifer Frankel

interest rate481454575For any international student considering taking out a student loan for studying abroad it is vital to know what APR is and how it affects them. APR stand for annual percentage rate. Understanding the APR to your loan can be a bit confusing, as most people tend to confuse APR and interest rate. The APR on a loan is expressed as a percent point, which is generally higher than the interest rate. APR gives more of the total cost of a loan including the interest rate and the costs to borrow from the bank. The APR was mandated by the government in order to stop bad loan practices from banks. While students may get a great low interest rate, there may be many hidden costs that offset the great interest rates. Since every lender uses the same calculation to determine the APR that they will offer, the APR can be used to compare the real costs of loans from several different lenders. When shopping for a student loan, it is a good idea to compare the different APRs being offered by lenders. Here are a few tips to find the best APR while also getting an understanding of the expectations of the APR and your interest rate. Read the rest of this entry »


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