Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as âCredibleâ below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours.
Average private student loan rates for borrowers with a credit score of 720 or higher who used the Credible market to take out student loans took different directions during the week of June 28, 2021. Fixed rate loan rates with 10-year repayment terms have fallen, while five-year variable rates have increased.
- 10-year fixed rate: 5.47%, compared to 5.70%, -0.23
- 5-year variable rate: 3.49%, versus 2.98%, +0.51
Trends in weekly student loan rates
With Credible, you can compare private student loan rates from lenders without affecting your credit score.
Private student loan interest rates for the week of June 28, 2021 are comparable to rates for the same period last year. Throughout 2021, private student loan rates remained relatively stable, showing only minor fluctuations from week to week.
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 offer private student loans. You can use private loans to pay for education and living expenses, which might not be covered by your federal student loans.
The interest rates and terms for private student loans can vary depending on your financial situation, credit history, and the lender you choose.
Consult the rates of our partner lenders in the table below.
Private student loan rate (diploma and undergraduate)
Who sets the interest rates on federal and private student loans?
Congress sets the interest rates on federal student loans annually. These fixed interest rates depend on the type of federal loan you take out, your dependency status, and your year of study.
The interest rates for private student loans can be fixed or variable and depend on your credit, 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 the rates of several student lenders using Credible.
How Does Student Loan Interest Work?
An interest rate is a percentage of the loan periodically added to your balance – essentially the cost of borrowing money. Interest is one way lenders earn money from loans. Your monthly payment often pays interest first, with the rest going to the amount you originally borrowed (the principal).
Getting a low interest rate could help you save money over the life of the loan and pay off your debt faster.
What is a fixed rate or variable rate loan?
Here is the difference between a fixed rate and a variable rate.
- With a fixed rate, the amount of your monthly payment will remain the same for the duration of your loan.
- With a variable rate, your payments can go up or down based on changes in interest rates.
Comparing private student loan rates is easy when you use Credible.
Calculate your savings
Using a student loan interest calculator will help you estimate your monthly payments and the total amount you owe over the term of your federal or private student loans.
Once you enter your information, you will be able to see what your monthly payment estimate will be, the total you will pay in interest over the life of the loan, and the total amount you will repay.
Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their unique circumstances. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options – without putting their personal information at risk or affecting their credit score. The Credible Marketplace offers an unmatched customer experience, as evidenced by over 4,300 positive reviews on Trustpilot and a Octoberscore of 4.7 / 5.