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Rates rose last week for well-qualified borrowers using the Credible marketplace to refinance student loans into high-dollar fixed loans and 5 - year variable rate loans.
Thesuspended for borrowers with credit scores of 720 or more who used the Credible Marketplace to select a lender during the week of October 11, 2021:
Rates on fixed-rate loans averaged 3.46%, down from 3.45% the week before and up from 4.11% a year ago. Rates for this term hit their lowest point of the last 15 months during the week of Sept. 27, 2021, when they were at 3.36%.
Rates for variable rate loans averaged 2.59%, down from 2.57% the week before and up from 3.31% a year ago. Rates for this term hit their lowest point of the last 15 months on Aug. 23rd, 2021 when they were at 2.53%.
If you are curious about what kind of student loan refinance rates you should qualify for, you can use an online tool like Credible to compare options from different lenders. To relief from the economic impacts of the COVID - 19 pandemic, interest and payments on state student loans have been suspended until at least Jan. 31, 2022. As long as that relief is in place, there's no incentive to refinance federal student loans. Instead many borrowers with low-interest student loans are using their low interest rate to refinance their education debt at lower rates.
If you qualify to refinance your student loans, the interest rate you may be offered can depend on factors like your FICO score, the type of loan you want fixed or variable rate and the loan repayment term.
The chart above shows that a 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. Because each lender has its own method of evaluating borrowers, it s a good idea to compare rates from multiple lenders so you can compare your options. A student loan refinancing calculator can help you figure out how much your saving might be.
If you want to refinance with bad credit, you may need to apply with a cosigner. Or, you can improve your credit history before applying. Many lenders will allow children to refinance Parent PLUS loans in their own name after graduation.
You can use Credible to compare rates from multiple private lenders at once without affecting your credit score.
How rates for student loan refinancing are determined?
The rates private lenders charge to refinance student loans vary in part on the economy and interest rate environment, but also the loan term, the type of loan fixed- or variable-rate the borrower's creditworthiness and lender's operating costs and profit margin.
Credible is a multi-lender marketplace that empowers customers 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 loan options without putting their personal information at risk or affecting their credit score. The Credible marketplace offers an unrivaled customer experience, as reflected by over 4,300 positive Trustpilot reviews and a TrustScore of 4.7 5.