Which of these might help you save money on a student loan?(1 point) Responses make your payments on the first day of every month make your payments on the first day of every month agree to automatic payments agree to automatic payments find a loan with a higher APR find a loan with a higher APR take a longer-term loan
agree to automatic payments
Among the options provided, the correct answer to help save money on a student loan is to "agree to automatic payments."
To save money on a student loan, you should consider the following options:
1. Make your payments on the first day of every month: Making your payments on time can help you avoid charges such as late fees and possibly even reduce your interest charges. By paying promptly, you prevent any additional fees from being added to your loan balance.
2. Agree to automatic payments: Many lenders offer incentives, such as a reduced interest rate or an interest rate deduction, if you sign up for automatic payments. This means that your loan payments are automatically deducted from your bank account each month, ensuring you never miss a payment.
3. Find a loan with a lower APR: The APR (Annual Percentage Rate) refers to the total cost of borrowing, including interest and any applicable fees, expressed as an annualized rate. So, instead of seeking a loan with a higher APR, you should look for loans with lower APRs. These typically result in lower monthly payments and save you money in the long run.
4. Choose a shorter-term loan: Although it may seem counterintuitive, taking a shorter-term loan can help save you money in interest charges. While longer-term loans may have lower monthly payments, they usually result in higher overall interest costs. By opting for a shorter-term loan, you can pay off the loan faster and reduce the total amount of interest you'll pay.
In summary, options 1 and 2 will help you avoid additional charges, while options 3 and 4 will help you reduce the overall cost of the loan.