2.  Federal student loans usually have the lowest interest rate  Have to start making payments 6 months after graduation  Making payments while in school will save you money on interest  Possibility of being forgiven  Always a fixed interest rate Different types of student loans - Direct Subsidized Loans (Undergraduates) 4.66%, interest payments paid by government while in school - Direct Unsubsidized Loans (Undergraduates) 4.66%, Interest accrues while in school - Direct Unsubsidized Loans (Graduate or Professional Students) 6.21% Interest accrues while in school - Direct PLUS Loans (Parents and Graduate or Professional Students) 7.21%, Interest accrues while in school

3.  Generally charge a higher rate than federal student loans  Interest rate based on credit score  Having a co-signer will result in a lower rate  Interest rate can be fixed or variable  Variable rates – charge a percent plus some kind of rate instrument, Prime Rate or Libor Ex: Libor + 2%

4.  Commonly the most expensive form of debt  Can be fixed or variable interest rate Average Rates (Bankrate.com) Fixed – 13.02% Variable – 15.7%  Rates much higher if bad credit or no credit  If you pay off the balance entirely every month, no interest is charged

5.  Loans made to purchase a house  Interest based on credit score  Can be fixed or variable Average Rates (Bankrate.com) 30 Year Fixed – 4.08% 15 Year Fixed – 3.29% 5/1 ARM – 3.19%  Adjustable rate mortgage (ARM) 5/1: 5 refers to the number of years the interest rate will remain the same,1 refers to the amount of additional interest that can be charged after the initial 5 year period each year

6.  Loans for the purchase of a vehicle  Interest rate based on credit score  Can be a fixed or variable interest rate Average Rates (Bankrate.com) 5 year fixed, new car – 4.06% 3 year fixed, used car – 4.92%  Most commonly use a fixed rate

7.  Can be a loan or used as a line of credit  House is used as collateral  Can be fixed or variable interest rate  Interest rate based on credit score Average Rate (Bankrate.com) Line of credit (HELOC) – 4.81% Loan – 6.15%

8.  Can receive a lower interest rate than previous rate  Fees are associated with a refinance When to consider a refinance - Interest rates have decreased - Large increase in credit score - Can pay off loan in a shorter amount of time - When you are able to find a co-signer