During the week of January 16, 2023, average private student loan rates fell for borrowers with credit scores of 720 or higher who used the Credible marketplace to take out 10 year fixed-rate loans and 5 year variable-rate loans.
You can compare private student loan rates from multiple lenders without affecting your credit score, through Credible.
Private student loan interest rates fell significantly this week for both 10 year fixed-rate and 5 year variable-rate loans. Rates for 10 year loans fell 0.58 percentage points, while 5 year loans saw a smaller drop of 1.71 percentage points. Rates for both loan terms are higher than they were at the same time last year, despite this week's decreases.
It's worth noting that borrowers with good credit may find a lower rate with a private student loan than with federal loans. For the 2022 -- 23 academic year, federal student loan rates range from 4.99% to 7.54%. Private student loan rates for borrowers with good to excellent credit can be lower right now.
You should always exhaust federal student loan options first, before turning to private student loans to cover any funding gaps because federal loans come with certain benefits, like access to income-driven repayment plans. Private student loans are provided by private lenders such as banks, credit unions and online lenders. You can use private loans to pay for education costs and living expenses, which might not be covered by your federal education loans.
Interest rates and terms on private student loans can vary based on your credit history, financial situation, and the lender you choose.
You can look at the Credible partner lender rates for borrowers who used the Credible marketplace to select a lender during the week of January 16:
The federal student loan interest rate is set by Congress each year. The type of federal loan you take out, your dependency status and your year in school are some of the factors that determine interest rates.
Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. The better your credit score, the lower your interest rate is likely to be.
An interest rate is a percentage of the loan that's tacked onto your balance, which is essentially the cost of borrowing money. A lender can make money from loans by investing in interest. A low interest rate can help you save money over the life of the loan and pay off your debt faster if you pay interest first on your monthly payment.
Here is the difference between a fixed and a variable rate:
When you use Credible, you can compare and contrast private student loan rates.
You can estimate your monthly payments and the total amount you owe over the life of your federal or private student loans by using a student loan interest calculator.
Once you enter your information, you can see what your estimated monthly payment will be, the total you ll pay in interest over the life of the loan and the total amount you ll pay back.
Credible is a multi-lender marketplace that allows consumers to find financial products that are the best fit for their unique circumstances. Credit bureaus, credit bureaus and lenders allow consumers to compare and contrast their loan options without putting their personal information at risk or affecting their credit score. The Credible marketplace has an unrivaled customer experience, as reflected by over and a TrustScore of 4.7 5.