Which of these might help you save money on a student loan?(1 point) Responses find a loan with a higher APR find a loan with a higher APR take a longer-term loan take a longer-term loan agree to automatic payments agree to automatic payments make your payments on the first day of every month
agree to automatic payments
To save money on a student loan, you can consider the following steps:
1. Find a loan with a lower APR: Look for student loans with lower interest rates as a lower APR (Annual Percentage Rate) will result in less money paid in interest over time.
2. Take a shorter-term loan: Choosing a shorter repayment period can save you money on interest as you will pay off the loan faster.
3. Agree to automatic payments: Some lenders offer a discount on the interest rate if you sign up for automatic payments. This can help reduce the total cost of the loan.
4. Make your payments on time: Timely payments will prevent late fees and may also help you to build a positive credit history.
It's important to note that finding a loan with a higher APR or taking a longer-term loan may not help you save money. These options can actually increase the total cost of the loan over time.
To save money on a student loan, one possible option is to agree to automatic payments. This is because many lenders offer a discount or a lower interest rate if borrowers set up automatic payments from their bank accounts. The reason behind this is that automatic payments ensure on-time payments, reducing the risk for the lender, which can lead to lower interest rates or discounts.
Finding a loan with a higher APR or taking a longer-term loan would not typically help you save money on a student loan. A higher APR means a higher interest rate, which would result in paying more interest over the life of the loan. Similarly, taking a longer-term loan extends the repayment period, resulting in more interest paid in the long run.
Making your payments on the first day of every month may help with managing your student loan payments effectively, but it does not directly result in saving money on the loan. The key to saving money on a loan is to minimize the total interest paid, either by securing a lower interest rate or paying off the loan early if possible.