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Borrowers may select any term offered by a lender regardless of the current loan term.
Often, the introductory rate on a variable-rate loan is lower than that of a fixed rate loan, though it has the potential to increase later.
Learn more A fixed-rate student loan guarantees a single interest rate that does not change over the lifetime of the loan.
Fixed-rate loans often have higher rates than the introductory rates on variable loans.
However, borrowers have peace of mind knowing their monthly payments will always be the same amount.