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Stratus Financial

90 Discovery Irvine, CA 92618
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Understanding Interest and Capitalization

Interest rates are all around us. They determine the rate you get when you buy a home, buy a car, open a checking account, or where to invest any extra money that you might have. When it comes to student loans, interest is the money lenders charge you to borrow their money. A lender will usually state the rate of interest as a percentage of the principal, which is the first amount that was borrowed. This percentage amount and your loan balance will determine how much interest you pay on your student loan each month.

Interest rates may also vary depending on other factors such as your credit score or how long you’ve had your current job. For example:

●If your credit score is high, lenders might give you a lower interest rate than someone with poor credit.
●If you’ve been with your employer for many years without missing any payments or being late on any payments, lenders might give you better terms than someone who has only been employed by their company for six months and has recently had some past financial problems 

What are Fixed and Variable Interest Rates?


When you take out a loan, you’ll have to choose between a fixed and variable rate. A fixed-rate loan has the same interest rate for the entirety of the borrowing period, while variable rate loans have an interest rate that changes over time. Borrowers who prefer predictable payments generally prefer fixed-rate loans, which won’t change in cost. The price of a variable rate loan will either increase or decrease over time, so borrowers who believe interest rates will decline tend to choose variable rate loans. In general, variable rate loans have lower interest rates and can be used for affordable short-term financing.

Understanding interest rates can help students make better decisions about how much to borrow and what repayment option to choose for their student loan


Interest rates are a key factor when deciding how much to borrow. Your student loan interest rate will depend on the type of loan and repayment option you choose. If you have private student loans, your lender chooses what they’ll charge based on their own funding costs and other factors like market conditions. This means that they can adjust their rates at any time without notice—even after taking out a loan—which can make planning difficult. Ifthis happens, contact your lender as soon as possible so they can explain how new terms might affect what you owe each month or year (or both!). 

In stratus, We based the approval of the loan on the borrower and co-borrower’s (parents, siblings, friends) on the following:

 FICO score,
 Current income while in school, and
 Assets

We can consider 2 out of 3 of these factors depending on the borrower’s financial capacity. Our interest rate is ranging from 6.99% for 2 years and 19.999% thereafter depending on your credit score. We finance the entire program compared to others who won’t offer to finance the entire amount. To know more about the loan programs you can reach us here or call us at 855-301-3335.
 

In conclusion, there are several things you can do to save money on your student loans. Here are afew tips:
● Borrow only what you need for school expenses (tuition, fees, books, and living expenses). Avoid borrowing extra funds for personal use.
● Choose the loan type that fits your needs best 
● If possible, pay more than the minimum monthly payment each month. This will reduce how long it takes you to pay off the loan and will also reduce how much interest accrues over time

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