Student loan rates are falling – variable rates are low in 6 months


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The latest private student loan interest rates from the credible marketplace, updated weekly. (iStock)

The average rates for private student loans for borrowers with a credit score of 720 or higher who used the Credible marketplace to take out student loans fell on the week of July 26, 2021.

  • 10-year fixed rate: 5.53%, down from 5.75% the week before
  • 5-year floating rate: 2.62%, down from 2.67% the week before

Through Credible you can: compare private student loan rates from lenders without affecting your credit score.

The five-year floating rate fell for the second time in two weeks. They haven’t been this low since the week of February 8, 2021, when they hit 1.84% – by far the lowest level of the past year. Meanwhile, the 10-year fixed rate fell for the first time this month and has remained relatively low.

You should always exhaust federal student loan options before turning to private student loans to cover any funding shortfalls. Private lenders such as banks, credit unions and online lenders provide private student loans. You can use private loans to pay for education and living expenses, which may not be covered by your federal education loans.

The interest rates and terms for private student loans may vary depending on your financial situation, credit history and the lender you choose.

Check out our partner borrower rates for borrowers who used the Credible marketplace to select a lender during the week of July 26.

Private Student Loan Rates (Graduate and Undergraduate)

Weekly Student Loan Interest Trends


Who sets federal and private interest rates?

Congress sets federal student loan interest rates each year. These fixed interest rates depend on the type of federal loan you take out, your dependency status, and the year in school.

The interest rates for private student loans can be fixed or variable and depend on your creditworthiness, repayment term and other factors. As a general rule, the better your credit score, the lower your interest rate is likely to be.

You can compare rates from multiple lenders for student loans credible use.

How does student loan interest work?

An interest rate is a percentage of the loan that is periodically taped to your balance – essentially the cost of borrowing money. Interest is one way that lenders can make money with loans. Your monthly payment often pays interest first, the rest goes toward the amount you initially borrowed (the principal).

Getting a low interest rate allows you to save money over the life of the loan and pay off your debt faster.

What is a fixed versus variable rate loan?

This is the difference between a fixed and variable rate:

  • With a fixed interest rate, your monthly amount remains the same during the term of your loan.
  • With a variable interest rate, your payments can rise or fall based on changing interest rates.

Comparison shopping for rates for private student loans is easy when you use Credible.

Calculate your savings

Using a interest calculator for student loans will help you estimate your monthly payments and the total amount you will owe over the term of your federal or private student loans.

After entering your details, you can see what your estimated monthly payment will be, the total amount you will pay in interest over the term of the loan, and the total amount you will repay.

About credible

Credible is a multi-lender marketplace that empowers consumers to discover financial products best suited to their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options — without compromising their personal information or impacting their credit score. The credible marketplace offers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.

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