Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to below as “credible,” is to give you the tools and confidence you need to improve your finances. While we promote products from our partner lenders that compensate us for our services, all opinions are our own.
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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, it fell again the week of July 5, 2021.
- 10-year fixed rate: 5.27%, down from 5.47% the week before
- 5-year floating rate: 2.99%, down 3.49% the week before
Through Credible you can: compare private student loan rates from lenders without affecting your credit score.
The Federal Reserve continues to keep interest rates low to stimulate the economy in the wake of the pandemic. This means it costs less to borrow money, giving student borrowers the opportunity to take out private student loans at economical rates.
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 5.
Private Student Loan Rates (Graduate and Undergraduate)
Weekly Student Loan Interest Rate 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 the interest on student loans 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.
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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