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The goal of Credible Operations, Inc. (NMLS number 1681276, hereinafter “Credible”) is to give you the tools and confidence you need to improve your finances. We advertise products from partner lenders who insure our services, but all opinions are our own.
The latest trends in student loan refinance interest rates from the Credible Marketplace are updated weekly. (iStock)
Interest rates for eligible borrowers who used the Credible Marketplace to refinance their student loans were slightly lower for 10-year fixed-rate loans and higher for 5-year variable-rate loans.
For borrowers with a credit score of 720 or higher who selected lenders using the Credible Marketplace during the week of December 13, 2021:
- The average interest rate on 10-year fixed rate loans was 3.33%, down from 3.37% last week and 3.87% a year ago. This is the lowest value in the last 12 months for this period.
- The average five-year floating rate loan rate was 2.82%, up from 2.75% last week and down from 3.23% a year ago. Interest rates for the quarter hit a record low of 2.41% in the week of 22 November 2021.
Student Loan Refinancing Weekly Rate Trends
If you are interested in student loan refinancing rates, you can use an online tool like Credible to compare various private financial institution options. Checking your rate does not affect your credit score.
Current Student Loan Refinancing Rates by FICO Score
Federal student loan interest and payments are suspended until at least January 31, 2022 to mitigate the economic impact of the COVID-19 pandemic. However, many borrowers with private student loans are taking advantage of the low interest rate environment to refinance their education loans at lower interest rates.
If you are eligible to refinance a student loan, the interest rate you may be offered depends on factors such as your FICO score, the type of loan you want (fixed or floating rate), and the loan repayment term.
The chart above shows that higher credit ratings tend to result in lower interest rates, while loans with fixed interest rates and longer repayment terms tend to have higher interest rates. Each lender has its own way of evaluating borrowers, so it’s a good idea to request interest rates from multiple lenders so you can compare your options. Our Student Loan Refinancing Calculator will help you estimate how much you can save.
If you wish to refinance a person with bad credit, you may be required to apply for a joint guarantor. Alternatively, you can work on improving your credit before applying. Many lenders allow children to refinance the Parent PLUS loan in their own name after graduation.
Credible allows you to compare rates from multiple private financial institutions at once without affecting your credit score.
How Student Loan Refinancing Rates Are Determined
The interest rates that private lenders charge to refinance student loans depend in part on the economy and interest rate environment, but also on the length of the loan, the type of loan (fixed or floating rate), the creditworthiness of the borrower, and the operating costs and profits of the lender. also depends on margin.
About Credible
Credible is a multi-lender marketplace that enables consumers to discover the financial products that best suit their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without compromising their personal information or impacting their credit score. The Credible Marketplace offers an unparalleled customer experience as reflected in over 4,300 positive Trustpilot reviews and a TrustScore of 4.7/5.
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