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Rates for well-qualified borrowers who used the Credible Marketplace to refinance student loans into fixed rate loans fell during the week of July 26, 2021.
For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender, during the week of July 26:
If you're curious about what kind of student loan refinance rate you could qualify for, you can use an online tool like Credible to compare options from different private lenders. The Federal student loan applications to provide relief from the financial impacts of the COVID - 19 pandemic have been suspended until at least September 30, 2021 for interest payments and other loan applications. As long as there is a relief for that relief in place, there is little incentive to refinance federal student loans. Many borrowers with low student loans are taking advantage of the low interest rate environment to refinance their education debt at lower rates.
If you qualify to refinance student loans, the interest rate you can be offered can depend on factors like your FICO score, the type of loan you want and the loan repayment term.
The chart above shows that good credit can help you get a lower rate and that rates tend to be higher on loans with fixed interest rates and longer repayment terms. What is the best way to compare rates with multiple lenders? A student loan refinancing calculator can help you estimate how much you might save.
If you want to refinance with bad credit, you may need cosigner. Or, you can work on the credit worthiness before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduating.
You can compare rates with any number of private lenders without affecting your credit score.
How rates for student loan refinancing are determined?
The rates private lenders charge to refinance student loans depend in part on the economy and interest rate environment but also loan term, borrower's creditworthiness and the lender's operating costs and profit margin.
Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible's integrations with leading lenders and credit bureaus allow consumers to compare accurate, personalized loan options without putting their personal information at risk or affecting their credit rating. The Credible marketplace provides an unrivaled customer experience, as reflected by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7 5.