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average Interest on private student loans for borrowers with credit scores of 720 or higher using the Credible marketplace to borrow student loans, the week of March 28, 2022 for both 10-year fixed rates and 5-year floating rates fell:
- 10 years fixed rate: 5.98%, vs. 6.82% the week before, -0.84
- 5 years variable interest rate: 5.64%, vs. 5.99% the week before, -0.35
Through Credible you can Compare interest rates on private student loans from multiple lenders without hurting your credit score.
Interest rates on both 10-year fixed and 5-year variable personal student loans fell last week. While 5-year floating rates saw only a slight decline, 10-year fixed rates fell nearly a full percentage point. After being fairly volatile over the past month, this week’s declines have taken 5-year floating rates to their lowest levels in three weeks. Borrowers can now enjoy interest savings with a 5-year variable rate loan or a 10-year fixed rate loan.
You should always exhaust the possibilities of the federal student loan first before you turn to private student loans to close financing gaps. Private lenders such as banks, credit unions, and online lenders offer private student loans. Personal loans can help you fund college and living expenses that may not be covered by your federal student loan.
Interest rates and terms on personal student loans may vary depending on your financial situation, credit rating, and the lender you choose.
Take a look at Credible partner lender interest rates for borrowers who used Credible’s marketplace to select a lender during the week of March 28:
Interest on private student loans (graduates and students)
Weekly student loan interest rate trends
Who sets federal and private interest rates?
Congress sets the federal interest rate on student loans each year. These fixed interest rates depend on the type of federal loan, your dependency status, and your school year.
Interest rates on personal student loans can be fixed or variable and depend on your credit history, term, and other factors. In general, the better your credit score, the lower your interest rate is likely to be.
You can Compare interest rates from multiple lenders for student loans Use credibly.
How does student loan interest work?
An interest rate is a percentage of the loan that is periodically tacked onto your balance — essentially the cost of borrowing. Interest is one way lenders can make money. Your monthly payment often pays interest first, with the rest going to the amount you originally borrowed (the principal).
A low interest rate can help you save money over the life of the loan and pay off your debt faster.
What is a fixed vs. adjustable rate loan?
Here is the difference between a fixed and variable interest rate:
- With a fixed rate, Your monthly payment amount will remain the same throughout the life of your loan.
- With a variable rate, Your payments may increase or decrease due to changing interest rates.
Price comparison for Interest on private student loans is easy when you use Credible.
Calculate your savings
A student loan interest rate calculator can help you estimate your monthly payments and the total amount you owe over the life of your government or private student loans.
Once you’ve entered your information, you can see what your estimated monthly payment will be, the total interest you will pay over the life of the loan, and the total amount you will repay.
Credible is a multi-lender marketplace that enables consumers to discover financial products that best fit their unique circumstances. Credible’s integration with leading lenders and credit reporting agencies allows consumers to quickly compare accurate, personalized loan options — without compromising their personal information or compromising their credit score. The credible marketplace offers an unparalleled customer experience as reflected by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.