Student Loan Refinance Interest Rates Plunge for 5-Year Variable Rate Loans
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The latest student loan refinance interest rate trends on the Credible Marketplace, updated weekly. (Stock)
Pricing for Qualified Borrowers using the Credible Marketplace for refinance student loans fell this week for 5-year floating rate loans and rose for 10-year fixed rate loans.
For borrowers with credit scores of 720 or higher who used the Credible Marketplace to select a lender during the week of September 5, 2022:
- Rates on 10-year fixed-rate refinance loans averaged 5.56%, up slightly from 5.42% the week before and 3.50% a year ago. Rates for this term hit their lowest point in 2022 so far during the week of January 10, when they were at 3.44%.
- Rates on 5-year variable rate refinance loans averaged 4.53%, down significantly from 5.39% the previous week and 3.07% a year ago. Rates for this term hit their lowest point in 2022 so far during the week of July 4, when they were at 2.51%.
Weekly Trends in Student Loan Refinance Rates
If you’re curious about what kind of student loan refinance rates you might qualify for, you can use an online tool like Credible to compare the options of different private lenders. Checking your rates will not affect your credit score.
Current Student Loan Refinance Rates by FICO Score
To ease the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least December 31, 2022. As long as this relief is in place, 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 student 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 repayment term. of the loan.
The chart above shows that good credit can help you get a lower rate, and rates tend to be higher on loans with fixed interest rates and longer repayment terms. Since each lender has their own method of evaluating borrowers, it’s a good idea to ask for rates from multiple lenders so you can compare your options. A student loan refinance calculator can help you estimate how much you could save.
If you want refinance with bad credit, you may need to apply with a co-signer. Or, you can work on improving your credit before applying. Many lenders will allow children to refinance parent PLUS loans in their own name after graduation.
You can use Credible to compare rates from several private lenders at once without affecting your credit score.
How Student Loan Refinance Rates Are Determined
The rates charged by private lenders to refinance student loans depend partly on the economic environment and interest rates, but also on the duration of the loan, the type of loan (fixed or variable rate), creditworthiness the borrower and the lender’s operating costs and profit margin. .
Credible is a multi-lender marketplace that allows consumers to discover the financial products best suited to their particular situation. Credible’s integrations with major lenders 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 Marketplace delivers an unparalleled customer experience, as evidenced by over Over 5,000 positive reviews on Trustpilot and a TrustScore of 4.7/5.