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During the week of September 26, 2022, average private student loan rates fell for borrowers with a credit score of 720 or higher who used the Credible Market to obtain both 10-year fixed-rate loans and 5-year floating-rate loans.

  • 10 year flat rate: 7.06% up from 7.82% a week earlier, -0.76
  • 5-year variable rate: 6.77% compared to 9.33% a week earlier, -2.56
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With Credible, you can compare private student loan rates from multiple lenders without impacting your credit score.

Interest rates on private student loans have dropped significantly this week for both 10-year fixed-rate loans and 5-year floating-rate loans. Ten-year loans fell 0.76 percentage points, while 5-year rates fell more than two percentage points. Despite a decline this week, rates on both terms are higher than at this time last year.

However, it’s worth noting that borrowers with good credit may find a lower rate on a private student loan than on some federal loans. In the 2022-2023 academic year, federal student loan rates will range from 4.99% to 7.54%. Private student loan rates for borrowers with good or excellent credit may be lower right now.

Because federal loans have certain benefits, such as access to income-based repayment plans, you should always exhaust your federal student loan options first before turning to private student loans to cover any funding gaps. Private lenders such as banks, credit unions, and online lenders provide private student loans. You can use private loans to pay for education and living expenses that may not be covered by your federal education loans.

Interest rates and terms of private student loans may vary depending on your financial situation, credit history and the lender you choose.

Take a look at Credible partner lender rates for borrowers who used the Credible marketplace to select a lender during the week of September 26:

Private student loan rates (graduates and undergraduates)

Weekly student loan rates

Who sets federal and private interest rates?

Congress sets the interest rates on federal student loans annually. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your year in school.

Interest rates on a private student loan can be fixed or variable and depend on your loan, repayment period and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.

You can compare rates from multiple student loan lenders with a reliable one.

How do student loan interest work?

The interest rate is the percentage of the loan that is periodically credited to your balance sheet—essentially the cost of borrowing money. Interest is one of the ways lenders can make money from loans. Your monthly payment often pays interest first and the rest goes to the amount you originally borrowed (principal).

Getting a low interest rate can help you save money over the life of the loan and pay off your debt faster.

What is a fixed and variable rate loan?

Here is the difference between fixed and variable rates:

  • FROM fixed rate, The amount of the monthly payment will remain the same throughout the term of the loan.
  • FROM variable rate your payments may increase or decrease depending on changes in interest rates.

Comparing student loan private rate purchases is easy when you use Credible.

Calculate your savings

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

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

About trustworthy

Credible is a multi-lender marketplace that allows consumers to find financial products that are best suited to their unique circumstances. Credible’s integration with leading lenders and credit bureaus allows consumers to quickly compare accurate, personalized loan options without putting their personal information at risk or impacting their credit score. The Credible Marketplace delivers an unrivaled customer experience as evidenced by over 4300 positive reviews Trustpilot and a trust rating of 4.7/5.