Fixed-rate student loan refinancing rises from record lows in early May
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The latest trends in student loan refinance interest rates from the Credible marketplace, updated weekly. (iStock)
Prices for well-qualified borrowers who use the Credible marketplace to order Refinance Student Loans 10-year fixed-rate loans began an upward trend towards the end of May 2021, after hitting several record lows in late April and early May. Still, rates are still a bargain compared to this time last year when the 10-year rates were above 4%.
As of May 31, for borrowers with a credit score of 720 or greater who used the Credible Marketplace to select a lender, the following applies:
- The interest rates on 10-year fixed-rate loans averaged 3.88%, up from 3.67% in the previous week and after 4.36% a year ago. The record low for 10-year fixed-rate loans was 3.56% in the week of May 17, 2021.
- The interest rates on 5-year floating rate loans averaged 3.33%, down from 3.04% the previous week and 2.73% a year ago. Floating rate loans hit a record low of 2.63% in the week of June 29, 2020.
Weekly interest rate development of student loan refinancing
If you want to know what refinancing rates you can qualify for on student loans, You can use an online tool like Credible to compare options from different private lenders. Checking your rates doesn’t affect your creditworthiness.
Current FICO Score Refinancing Rates for Student Loans
To ease the economic impact of the COVID-19 pandemic, interest and payments were made on federal student loans closed until at least 30.09.2021. As long as there is relief, there is little incentive Refinance federal student loans. But many borrowers with private student loans are taking advantage of the low interest rate environment to refinance their educational debt more cheaply.
If you qualify for your student loan refinance, the interest rate that you are offered may depend on factors such as your FICO score, the type of loan you are looking for (fixed or variable rate), and the length of the loan.
The graph above shows that good credit can help you get a lower interest rate, and that interest rates tend to be higher on fixed-rate, longer-term loans. Since each lender has their own method of evaluating borrowers, it is a good idea to request rates from multiple lenders so that you can compare your options. A Refinancing calculator for student loans can help you estimate how much you could save.
If you want Refinancing with a bad credit rating, you may need to apply to a co-signer. Or, you can work on improving your credit rating before applying. Many lenders allow children to refinance Parent PLUS loans on their own behalf after graduation.
You can Use Credible to compare prices from multiple private lenders at the same time without compromising your creditworthiness.
This is how the interest rates for refinancing student loans are determined
The interest rates of private lenders for refinancing student loans depend in part on the economy and the interest rate environment, but also on the loan term, the type of loan (fixed or variable), the creditworthiness of the borrower and the operating costs and profit margin of the lender.
Credible is a multi-lender marketplace that enables consumers to discover financial products that best suit their particular circumstances. Credible’s integration with leading lenders and credit bureaus enables consumers to quickly compare accurate, personalized credit options – without compromising their personal information or compromising their creditworthiness. The Credible Marketplace offers an unrivaled customer experience, as reflected in over 4,300 positive Trustpilot reviews and a TrustScore of 4.7 / 5.