College on the Cheap’s street team went back out again and interviewed another round of students. One of the questions we asked them was if they knew what APR stands for. In a refreshing twist from the answers we normally see, a good amount of students knew what the acronym stood for.

For those of you who don’t know, APR stands for Annual Percentage Rate. It’s the actual annual cost of the loan expressed as a percentage. The Truth in Lending Act requires all banks to provide the APR to allow you to compare different loan options on a level playing ground. SimpleTuition’s Loan Comparison Tool allows you to compare many different loans side-by-side, and the APR is one of the most important figures to consider when comparing loans.

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