Federal student loan rates rise for borrowers with good credit scores

Federal student loan rates rise for borrowers with good credit scores

During the week of September 18, 2023, average rose for borrowers with credit scores of 720 or higher who used the Credible marketplace to take out 10-year fixed-rate loans and fell for borrowers who took out 5-year variable-rate loans.

Credible connects you with multiple lenders, allowing you to choose from a range of lenders.

For fixed-pricing student loans, interest rates rose 0.38 percentage points, while rates for variable-pricing student loans fell by 0.56 percentage points.

With a private student loan, borrowers may have a lower interest rate than with some federal loans. For the 2023-24 academic year, federal student loan rates will range from 5.50% to 8.05%. Now, private student loan rates can be lower for borrowers with good to excellent credit.

With the benefits of federal loan options, such as income-driven repayment plans, it's best to exhaust federal student loan options first before adopting private student loans to cover any funding gap. Private lenders, such as banks, credit unions, and online lenders, offer private student loans. If you have federal education loans, you can use private loans to pay for education expenses and living expenses, which may not be covered by your federal education loans.

Private student loan rates and terms can differ depending on your financial circumstances, credit history, and the lender you choose.

For borrowers who used the Credible marketplace to select a lender during the week of September 18, take a look at Credible partner lenders' rates.

The interest rate of federal student loans is set annually by the House of Representatives. These fixed interest rates are determined by the type of federal loan you take out, your dependency status, and your school year.

Student loan interest rates can be fixed or variable and depend on your credit, repayment term, and other factors. With a good credit score, the lower interest rates will likely be, as a general rule.

An interest rate is a percentage of the loan that is tacked onto your balance, meaning it is essentially the cost of borrowing money. The loan can be made from interest, which is one of the many ways that lenders can make money. Your monthly payment usually pays interest first, with the rest going to the amount you originally borrowed.

Low interest rates can help you save more over the life of the loan and pay off your debt faster.

By using Credible, you can compare prices for private student loan rates.

By using a student loan interest calculator, you'll be able to calculate your monthly payments and the total amount you'll owe over the course of your federal or private student loans.

As soon as you enter your information, you'll be able to see what your monthly payment will be, the amount you'll pay in interest over the life of the loan and the total amount you'll pay back.

Credible is a flexible platform that allows consumers to find finance products that are the best fit for their specific circumstances. Credible's integrations with top lenders and credit bureaus enable consumers to quickly compare accurate, personalized loan options without putting their personal information at risk or affecting their credit score. The Credible marketplace has an unparalleled customer experience, reflected in over and a trustScore of 4.7/5.