The cost of higher education has been rising rapidly over the last decade, making it tough for many students to pay out of pocket for the cost of college. So, to help finance their college classes and living expenses, it's becoming more and more common for students to turn to student loans to help finance the costs of their education. But between today's high-rate environment and the growing costs of higher education, that kind of borrowing can be costly.
Consider fixed-rate student loans Variable-rate student loans may seem attractive because they typically offer initially lower interest rates, making them appear more affordable upfront. However, these types of loans are subject to market fluctuations and can increase over time depending on the overall rate environment. And that can make it challenging to budget for repayment, as there's always a chance that rates could climb in the future.