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The average private student loan rates for borrowers with a credit rating of 720 or higher who used the Credible market to obtain fixed rate student loans fell during the week of August 9, 2021, while variable rate student loans rose in the same week.
- 10-year flat rate: 5.38%, up from 5.45% a week earlier
- Five-year variable rate: 3.04% up from 2.83% a week earlier
Through Credible, you can compare rates on private student loans from lenders without affecting your credit rating.
The ten-year fixed rates have declined steadily since mid-July and are now close to a record year low of 5.27%. Last week marked the third consecutive week of decline in 10-year fixed rates. Although five-year floating interest rates have risen this week, they are still at one of their lowest levels in six months.
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 partner lenders for borrowers who used the Credible market to select a lender during the week of August 9th.
Private student loan rates (for graduates and students)
Weekly dynamics of student loan rates
Who sets federal and private interest rates?
Congress sets federal student loan interest rates 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 that is periodically added 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 a fixed and variable rate:
- 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 will help you estimate your monthly payments and the total amount of your federal or private student loan debt over the life of the loan.
After 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 term of the loan, and the total amount you will repay.
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.