The fixed interest rate will never change throughout the life of the loan. This may make it easier to plan ahead because you will always know the interest you will be charged. The variable rate you are offered when your application has been conditionally approved may be lower than the fixed rate offered. This means that if the rate index decreases or remains consistent, you may save money over time over the fixed rate, but the opposite occurs if the rate index increases. When selecting a variable rate, it is important to understand that when the rate increases, so does your required payment amount.
Please note that the information provided on this website is provided on a general basis and may not apply to your own specific individual needs, goals, financial position, experience, etc. LendKey does not guarantee that the information provided on any third-party website that LendKey offers a hyperlink to is up-to-date and accurate at the time you access it, and LendKey does not guarantee that information provided on such external websites (and this website) is best-suited for your particular circumstances. Therefore, you may want to consult with an expert (financial adviser, school financial aid office, etc.) before making financial decisions that may be discussed on this website.