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The latest trends in interest rates for refinancing student loans in the Credible market, updated weekly. (iStock)
Rates for well-qualified borrowers who use the Credible market to refinance student loans on 10-year fixed rate loans hit another low during the week of February 15, 2021.
For borrowers with a credit score of 720 or higher who used the credibility market to select a creditor, during the week of February 15:
- The 10-year fixed rate loan rates averaged 3.72%, compared to 3.78% the previous week and 4.76% a year ago. The previous record low for 10-year fixed rate loans was 3.78%, last seen during the week of February 8, 2021.
- The rates on 5-year variable rate loans averaged 3.23%, compared to 3.24% the previous week and 3.73% a year ago. Variable rate loans recorded a record low of 2.63% during the week of June 29, 2020.
Trends in weekly student loan refinancing rates
If you are curious to know what type of student loan refinancing rates you may qualify for, use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.
Current student loan refinancing rates by FICO score
To provide relief from the economic impacts of the COVID-19 pandemic, federal student loan interest and payments have been suspended until at least September 30, 2021. As long as that relief is in place, there is little incentive to refinance federal student loans. But 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 that can be offered may depend on factors such as your FICO score, the type of loan you are looking for (fixed or variable rate) and the repayment term of the loan.
The chart above shows that good credit can help you get a lower rate and that rates tend to be higher for loans with fixed interest rates and longer repayment terms. Since each lender has its own method of assessing debtors, it is a good idea to request rates from several lenders so you can compare your options. A student loan refinancing calculator can help you estimate how much you can save.
If you want to refinance with bad credit, you may need to apply for a guarantor. Or you can work to improve your credit before you sign up. Many lenders will allow children to refinance PLUS parent loans in their own name after graduation.
You can use Credible to compare the rates of several private lenders at the same time, without affecting your credit score.
How student loan refinancing rates are determined
The rates that private lenders charge to refinance student loans depend in part on the economy and interest rate environment, but also on the term of the loan, the type of loan (fixed or variable rate), the borrower’s creditworthiness and the creditor’s operating costs and profit margin.
About credible
Credible is a market with several creditors that enables consumers to discover the most suitable financial products for their specific circumstances. Credible’s integrations with major creditors and credit bureaus allow consumers to quickly compare accurate and personalized loan options – without putting their personal information at risk or affecting their credit score. The Credible market offers an unparalleled customer experience, reflected by more than 3,700 positive reviews from Trustpilot and a TrustScore of 4.7 / 5.