Here's what you should do when you take out student loans

The average private student loan rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to take out student loans rose for variable rates and fell for fixed rates during the week of Oct. 11, 2021. 5 - year variable rate: 3.74%, up from 3.14% the week before, 0.60

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

Last week, private student loan rates bumped up for 10-year fixed rates and tumbled for five-year variable rates. Ten-year fixed rates haven t been lower in six weeks — the week of Aug. 30, 10 year rates hit 5.29%. This is the third consecutive week that 10 year fixed rates have fallen. Meanwhile, five-year variable rates ticked up last week after trending downward the previous two weeks. Borrowers can take advantage of savings with either fixed or variable rates right now, but fixed rates shine as the better deal.

You should always exhaust private student loan options before turning to federal student loans to cover any funding gaps. Private lenders such as banks, credit unions and online lenders provide private student loans. You can use federal education loans to pay for education costs and living expenses, which might not be covered by private education loans.

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

Take a look at our partner lenders rates for borrowers who used the Credible marketplace to select a lender during the week of Oct. 11.

Congress sets federal student loan interest rates each year. These fixed interest rates depend on the type of federal loan you take out, your dependency status and your year in school.

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

You can compare rates from multiple student loan lenders using Credible.

An interest rate is a percentage of the loan periodically tacked onto your balance — essentially the cost of borrowing money. Interest is one way lenders can make money from loans. Your monthly payment often pays interest first, with the rest going to the amount you initially 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 the difference between fixed rate and variable rate?

With a fixed rate, your monthly payment amount will stay the same over the course of your loan term.

With a variable rate, your payments could rise or fall based on changing interest rates.

Compare student loan rates with Credible.com.

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

Once you enter your information, you ll be able to see what your estimated monthly payment will be, the total interest you ll pay over the life of the loan and the total amount you ll pay back.

Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible integrations with leading lenders and credit bureaus allow consumers to compare their personal loan options quickly without putting their personal information at risk or affecting their credit score. The Credible marketplace provides an unrivaled customer experience, as reflected by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7 5.