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Rates for well-qualified borrowers who use the credible marketplace to: refinance student loans in 10-year fixed-rate loans rose slightly in the week of May 31, 2021, while 5-year fixed-rate loans slipped below 3%. Both loan types ended May around historic lows.
For borrowers with a credit score of 720 or higher who used the Credible marketplace to select a lender during the week of May 31:
- The yield on 10-year fixed-rate loans averaged 3.80%, up from 3.67% the week before and down from 4.41% a year ago. The record low for 10-year fixed-rate loans was 3.56%, in the week of May 17, 2021.
- The yield on 5-year floating rate bonds averaged 2.95%, down 3.04% the week before and up 2.80% a year ago. Floating rate loans hit a record low of 2.63% in the week of June 29, 2020.
Weekly Student Loan Refinancing Interest Rate Trends
If you’re curious about what kind of student loan refinancing rates you qualify for, you can use an online tool like Credible use to compare options from different private lenders. Checking your rates will not affect your credit score.
Current Student Loan Refinancing Rates by FICO Score
To provide relief from the economic impact of the COVID-19 pandemic, interest and payments on federal student loans suspended until at least September 30, 2021. As long as that relief is present, there is little incentive to federal student loan refinance. But many private student loan borrowers are taking advantage of the low interest rates to refinance their education debt at lower rates.
If you qualify to refinance your student loans, the interest rate you may be offered may depend on factors such as your FICO score, the type of loan you are seeking (fixed or variable rate), and the loan repayment term.
The chart above shows that good credit can help you get a lower rate, and rates tend to be higher for fixed-rate loans with longer repayment terms. Because each lender has its own method of evaluating borrowers, it’s a good idea to request rates from multiple lenders so you can compare your options. A student loan refinancing calculator can help you estimate how much you can save.
If you want refinance with bad credit, you may need to apply to a co-signer. Or you can work on improving your credit before applying. Many lenders will allow children to refinance the Parent-PLUS loans in their own name after graduation.
You can use Credible to compare rates from multiple private lenders at once without impacting your credit score.
How Student Loan Refinancing Rates Are Determined
The rates private lenders charge to refinance student loans depend in part on the economy and the interest rate environment, but also on the term of the loan, the type of loan (fixed or variable rate), the borrower’s creditworthiness, and operating costs and profit margin. from the lender.
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.