How does the Interest Rate Affect the Overall Cost of An Education Loan

The interest rate on an education loan significantly affects the overall cost of borrowing. A higher interest rate leads to increased monthly payments and total repayment amounts, making the loan more expensive over time. Conversely, a lower interest rate reduces the cost of the loan, easing the financial burden on students and families. Interest rates also determine how quickly the loan balance grows, especially if payments are deferred during schooling. It's crucial to compare loan options, focusing on interest rates, to minimize the overall cost and avoid long-term financial strain while pursuing an education.Readmore