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

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 use Credible marketplace to take out student loans fell for both variable rates and fixed rates during the week of Oct. 4 in 2021. 5 year variable rate: 3.14%, down from 3.36% the week before, - 0.22

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

The private student loan rates went up for both 10 year fixed rates and five year variable rates last week. Five-year variable rates haven't fallen in four weeks — rates for this term have fallen almost every week of September, but have now climbed for two weeks in a row. The five-year fixed rates have also been trending downward for the last two weeks. Borrowers could take advantage of savings with either fixed rate or variable rates right now.

You should always consider private student loan options before starting to exhaust federal student loan options to cover any funding gaps. Private lenders such as banks, credit unions and online lenders offer private student loans. You can use federal education loans to pay for living costs and public education expenses that don't need 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 choose a lender during the week of Oct. 4.

Federal student loan rates are introduced by Congress each year, and govern when the interest rates are determined. The fixed interest rates depend on the type of federal loan you take out, your dependency status and your history in school.

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

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

An interest rate is a percentage of your loan monthly tacked on your balance — essentially the cost of borrowing money. Interest is a good way to make money with loans. Your monthly payment pays interest first, the rest going to that amount you originally borrowed the principal. Getting a low interest rate can help you save money over the life of your loan and pay off your debt faster.

What is the difference between fixed rate and variable rate?

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

With a variable rate, your payments can rise or fall if changing interest rates result.

Compare student loan rates with Credible.

Use of a student loan interest calculator will help you estimate your monthly payments and the total amount you owe over the lifetime of your federal or private student loan debts.

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

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 negatively affect their credit score. The Credible marketplace provides an unrivaled customer experience, as reflected by more than 4,300 positive Trustpilot reviews and a TrustScore of 4.7 5.