Rates for qualified borrowers using the Credible marketplace for refinance student loans fell this week on 10-year fixed-rate loans and rose on 5-year floating-rate loans.
For borrowers with a credit score of 720 or higher who used the Credible platform to select a lender during the week of October 3, 2022:
- Rates on 10-year fixed-rate refinancing loans averaged 5.49% compared to 5.56% a week earlier and up from 3.45% a year ago. Rates for this period reached their lowest point in 2022 during the week of January 10, when they stood at 3.44%.
- Rates on 5-year variable rate refinancing loans averaged 3.41% compared to 3.38% a week earlier and 2.57% a year ago. Rates for that period hit their lowest point in 2022 in the week of July 4, when they stood at 2.51%.
Dynamics of weekly student loan refinancing rates
If you are wondering what student loan refinancing rates you can qualify for, you can use an online tool like Credible compare options from different private lenders. Checking rates will not affect your credit score.
Current Student Loan Refinancing Rates Based on FICO Scores
To ease the economic impact of the COVID-19 pandemic, federal student loan interest and payments have been suspended until at least December 31, 2022. While this relief is in effect, there is little incentive to refinance federal student loans. But many borrowers with private student loans are taking advantage of low interest rates to refinance their education debt at lower rates.
If you qualify to refinance your student loans, the interest rate you may be offered may depend on factors such as your FICO score, the type of loan you are seeking (fixed or variable rate), and the loan’s maturity.
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 maturities. Because each lender has their own method of scoring borrowers, it’s a good idea to ask for rates from multiple lenders so you can compare your options. BUT student loan refinancing calculator can help you estimate how much you could save.
If you want to refinancing with bad credit, you may need to apply with a guarantor. Or you can work on improving your credit prior to applying. Many lenders allow children to refinance parental PLUS loans in their own name after they graduate.
You can use Credible to compare prices from several private lenders at the same time without affecting your credit score.
How student loan refinancing rates are determined
The rates private lenders charge to refinance student loans depend in part on the economy and interest rate terms, as well as the length of the loan, type of loan (fixed or floating rate), creditworthiness of the borrower, and the operating costs and profits of the lender. .
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 5000+ positive Trustpilot reviews and a trust rating of 4.7/5.
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