Choosing the Right Student Loan Company Can Save You Thousands

Thinking about taking out a student loan? If so, the choices you make now can have a big impact on your financial future. Total student loan debt has climbed to $1.5 trillion with 44 million borrowers across the country. Furthermore, an estimated 8 million Americans are paying more than they have to on student loan interest. Let’s find out how you can avoid overpaying. The good news is that it’s much simpler than you think.

How Much Can I Save?

By shopping for the best interest rates on student loans your savings can be significant. Let’s say you take out a loan for $50,000 at 6% interest to be paid back over 120 months. Your total payment would be $66,612. Now if you found a less expensive loan, for example, at 4% interest, then your payment would be only $60,747. The total savings would be $5,865.

The real life numbers are even more impressive. It’s been shown that current student loan holders could be overpaying as much as $18,000 each over the life of the loan. That’s some serious cash.

Why People Overpay on Student Loans

Some borrowers might simply be in a hurry thinking, “No big deal. I have plenty of time to pay back the loan.” Since they don’t take their time, they rush through the process without comparing rates. This kind of reasoning, however, can lead to larger monthly loan payments in the future.

Others might be willing to take their time and compare companies, but they end up getting frustrated. Going from lender to lender is time consuming. There are forms to fill out, and you have to wait for a reply. Plus, after one or two rejections, these borrowers might end up willing to take out a loan with any company that accepts them.

The answer to these obstacles must be a solution that is fast and thorough. Is there a better way?

Student Loan Shopping

Today, online multi-lender marketplaces have made the process incredibly easy, even for those in a hurry. These platforms contact the lenders for you, and they can even personalize the process to fit your situation. You simply answer a few questions about yourself, and within minutes you have a list of prequalified rates to choose from.

This is not only the fastest way to get personalized information, but it also ends up saving you money. Lenders compete for your business so they offer competitive rates. As we saw previously, even a small difference in interest rates can lead to thousands of dollars saved over the life of the loan.


It’s very common today to require a bit of financial help to pay for school. Make sure you take advantage of the tools out there that can save you money. Later, when you have to pay back the loan, you’ll be thankful you shopped around.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment


People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
profitable business, business tips, business advice

3 Brilliant Tips to a Safe (and Profitable) Business

Your property and your finances are interlinked. They go together like Ant and Dec or Jay Z and Beyoncé. Without your property, how... more →