Fixed and variable rates on student loans are growing, but still relatively low



Our goal here at Credible Operations, Inc., NMLS 1681276, hereinafter referred to as “Credible”, is to provide you with the tools and confidence you need to improve your finances. Although we promote the products of our lender partners who compensate us for our services, all opinions are ours.

Latest weekly updated private student loan interest rates on the Credible market. (iStock)

The average private student loan rates for borrowers with a credit rating of 720 or higher who have used the Credible market to obtain fixed and variable rate student loans rose during the week of August 16, 2021.

  • 10-year flat rate: 5.95%, up from 5.38% a week earlier
  • Five-year variable rate: 3.26%, up from 3.04% a week earlier

Through Credible, you can compare rates on private student loans from lenders without affecting your credit rating.

Although 10-year fixed rates have risen this week, they have been steadily declining since mid-July and are still relatively low. Five-year floating interest rates also rose this week, but they are still at one of their lowest levels in six months. They were last above this value in the week of June 28, 2021.

You should always exhaust federal student loan opportunities first before applying for private student loans to cover any funding gaps. 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 that may not be covered by your federal education loans.

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

Take a look at the rates of our lender partners for borrowers who used the Credible market to select a lender during the week of August 16.

Private student loan rates (for graduates and students)

Weekly dynamics of student loan rates

Who sets federal and private interest rates?

Congress sets the interest rates for federal student loans annually. These fixed interest rates depend on the type of federal loan you receive, your dependent status, and your year of school.

Interest rates on a private student loan can be fixed or variable and depend on your loan, maturity and other factors. Generally, the better your credit rating, the lower your interest rate is likely to be.

You can compare rates from multiple student loan lenders using Credible.

How does student loan interest work?

The interest rate is the percentage of the loan added periodically to your balance sheet – essentially the cost of borrowing money. Interest is one of the ways that loan lenders earn money. Your monthly payment is often paid interest first, and the rest is the amount you originally borrowed (principal).

A low interest rate can help you save money over the loan term and pay off debt faster.

What is a fixed or floating rate loan?

Here is the difference between fixed and variable rates:

  • At a fixed rate, the amount of the monthly payment will remain unchanged for the entire loan term.
  • With a variable rate, your payments can increase or decrease depending on changes in interest rates.

Compare purchases for private student loan rates it’s easy when you use Credible.

Calculate your savings

Using student loan interest calculator helps you estimate your monthly payments and the total amount of your federal or private student loan debt over the life of the student.

Once you enter your information, you will be able to see what your estimated monthly payment will be, the total amount you will pay in interest over the life of the loan, and the total amount you will pay back.

About reliability

Credible is a multi-lending marketplace that allows consumers to find financial products that are best suited to their unique circumstances. Credible’s integration with leading lenders and credit bureaus allows consumers to quickly compare accurate, personalized loan options without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unrivaled customer experience with more than 4,300 positive reviews on Trustpilot and a TrustScore 4.7 / 5.


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