Fixed 10-year private student loan rates plunge after rising steadily for 4 weeks
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Credible Market’s latest private student loan interest rates, updated weekly. (Stock)
Medium private student loan rates for borrowers with credit scores of 720 or higher who used the Credible Marketplace to take out student loans fell for fixed rates and rose for variable rates during the week of January 24, 2022:
- 10-year fixed rate: 5.98%, against 6.75% the previous week, -0.77
- 5-year variable rate: 4.77%, against 3.82% the previous week, +0.95
With Credible, you can compare private student loan rates from lenders without affecting your credit score.
Rates on 10-year fixed private student loans fell last week, falling nearly 1%. They previously tended to increase every week since December 27, 2021. Meanwhile, 5-year variable rates jumped almost 1%. These are the highest 5-year variable rates since the week of December 27, 2021, when they reached 4.90%. A 10-year fixed rate loan may be the best option for borrowers right now because rates are still relatively low and your interest rate won’t change over time.
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 may not be covered by your federal student loans.
Private student loan interest rates and terms may vary depending on your financial situation, credit history and the lender you choose.
Take a look at the Credible partner lender rates for borrowers who used the Credible Marketplace to select a lender during the week of January 24:
Private student loan rates (diploma and undergraduate)
Student Loan Weekly Rate Trends
Who sets federal and private interest rates?
Congress sets interest rates for federal student loans each year. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your school year.
Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.
You can compare rates from multiple 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 a way lenders make 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, your monthly payment amount will stay the same for the life of your loan.
- With a variable rate, your payments can go up or down as interest rates change.
Comparative purchases for 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 will owe over the term of your federal or private student loans.
Once you’ve entered your information, you’ll be able to see what your estimated monthly payment will be, the total you’ll pay in interest over the term of the loan, and the total amount you’ll repay.
Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. 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 delivers an unparalleled customer experience, as evidenced by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.