Fixed interest rates on 10-year private student loans fall below 6%

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The latest private student loan rates from the Credible market are updated weekly. (iStock)

Average private student loan interest rates for borrowers with a credit score of 720 or higher who used the Credible marketplace to obtain student loans were reduced for both 10-year fixed interest rates and 5-year variable interest rates during the week of March 28, 2022:

  • Fixed interest rate for 10 years: 5.98%, from 6.82% last week, -0.84
  • 5-year variable interest rate: 5.64%, from 5.99% last week, -0.35

Through Credible, you can compare private student loan rates from many lenders without affecting your credit score.

Interest rates on both 10-year fixed and 5-year variable private student loans fell last week. Although the 5-year variable interest rates showed only a slight decrease, the 10-year fixed interest rates decreased by almost a full percentage point. After being quite volatile last month, this week’s cuts set variable 5-year interest rates to their lowest levels in three weeks. Borrowers can enjoy savings at a floating interest rate of 5 years or a fixed interest rate loan of 10 years at this time.

You should always exhaust your federal student loan options before turning to private student loans to fill 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 your education and living expenses, which may not be covered by your federal education loan.

The rates and terms of private student loans may vary depending on your financial situation, credit history and the lender you choose.

Take a look at the interest rates of credible lenders for borrowers who used the Credible market to select a lender during the week of March 28:

Private student loan interest rates (undergraduate and undergraduate)

Weekly student loan interest rate trends

Who sets federal and private interest rates?

Congress sets interest rates on federal student loans each year. These fixed interest rates depend on the type of federal loan you receive, your dependency status and your year of study.

Private student loan rates can be fixed or variable and depend on your credit, repayment period and other factors. As a general rule, the better your credit score, the lower your interest rate is likely to be.

You can compare interest rates from many student loan lenders using Credible.

How do student loan interest rates work?

The interest rate is a percentage of the loan that is periodically charged to your balance – essentially the cost of borrowing money. Interest is one way lenders can get money out of loans. Your monthly payment often pays first interest, with the balance going to the amount you originally borrowed (capital).

Taking a low interest rate could help you save money over the life of your loan and pay off your debt faster.

What Is A Fixed Rate Fixed Rate Loan?

The following is the difference between a fixed and a variable interest rate:

  • With fixed interest rate, Your monthly payment amount will remain the same for the duration of your loan.
  • With variable rate, Your payments may increase or decrease depending on the change in interest rates.

Compare markets for private student loan interest rates is easy when using Credible.

Calculate your savings

Using a student loan interest calculator will help you calculate your monthly payments and the total amount you owe over the life of your federal or private student loans.

Once you have entered your details, you will be able to 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.

About Credible

Credible is a multi-lender marketplace that enables consumers to discover financial products that best suit their unique circumstances. Credible mergers with top lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options – without compromising their personal information or credit score. The reliable market provides an unrivaled customer experience, as reflected from above 4,300 positive reviews Trustpilot and TrustScore 4.7 / 5.

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