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The rates for well-qualified borrowers using the Credible marketplace to refinance student loans went up for both 5 year variable-rate loans and 10 year fixed-rate loans.
For borrowers with credit scores of 720 or higher who have used the Credible marketplace to select a lender during the week of November 29, 2021:
The average rate for 10 year fixed-rate loans was 3.40%, up from 3.35% the week before and down from 3.93% a year ago. The lowest point for this term was during the week of November 22, 2021, when they were at 3.35%.
The rate on 5 year variable-rate loans was 2.49%, up from 2.41% the week before and down from 3.35% a year ago. The lowest point for this term was during the week of Nov. 22, 2021, when they were at 2.41%.
If you want to compare options from different private lenders, you can use an online tool like Credible to find out what kind of student loan refinance rates you may qualify for. Interest and payments on federal student loans have been suspended through January 31, 2022 in order to provide relief from the economic impacts of the COVID 19 pandemic. As long as the relief is in place, there is little incentive to refinance federal student loans. Many borrowers with private student loans are taking advantage of the low interest rate environment 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, type of loan you want to get fixed or variable rate, and the loan repayment term.
The chart 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. It is a good idea to request rates from multiple lenders so that you can compare your options, because each lender has its own method of evaluating borrowers. 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 to apply with a cosigner. You can work on improving your credit before applying. After graduation, many lenders will allow children to refinance Parent PLUS Loans in their own name.
You can compare rates from multiple private lenders without affecting your credit score, using Credible.
How rates for student loan refinancing are determined?
Private lenders' rates to refinance student loans are dependent on the economy and interest rate environment, but also on the loan term, type of loan fixed or variable-rate the borrower's creditworthiness and the lender's operating costs and profit margin.
Credible is a multi-lender marketplace that allows consumers to find financial products that are the best fit for their unique circumstances. Credit bureaus and credit bureaus allow consumers to compare and contrast loan options without putting their personal information at risk or affecting their credit score. Over 4,300 positive Trustpilot reviews and a TrustScore of 4.7 5 are a proof of the Credible marketplace's unrivaled customer experience.