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The latest private student loan interest rates from Credible Marketplace, updated weekly. (iStock)
During the week of September 16, 2024, on average private student loan rates increased for borrowers with a credit score of 720 or higher who used the Credible marketplace to take out 5-year variable-rate loans and dropped out for 10-year fixed-rate loans.
- 10-year fixed rate: 7.99%, compared to 8.57% the previous week, -0.58
- 5-year variable rate: 10.31%, compared to 8.61% the previous week, +1.70
Thanks to Credible, you can compare private student loan rates from several lenders.
For 10-year fixed private student loans, interest rates decreased by 0.58 percentage points, while variable interest on 5-year student loans increased by 1.70 percentage points.
Borrowers with good credit may find a lower rate with a private student loan than with some federal loans. For the 2024-2025 school year, federal student loan rates will range from 6.53% to 9.08%. Private student loan rates for borrowers with good to excellent credit may be lower at this time.
Because federal loans come with certain benefits, such as access to income-driven repayment plans, you should always first exhaust federal student loan options before turning to private student loans to fill any shortfalls financing. Private lenders such as banks, credit unions, and online lenders offer private student loans. You can use private loans to pay for education and living expenses, which might not be covered by your federal student loans.
Private student loan interest rates and terms may vary depending on your financial situation, credit history, and the lender you choose.
Private student loan rates (diploma and undergraduate)
Who sets federal and private interest rates?
Congress sets federal student loan interest rates each year. These fixed interest rates depend on the type of federal loan you take out, your dependent status, and your year of study.
Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.
You can compare rates from multiple student lenders using Credible.
How does student loan interest work?
An interest rate is a percentage of the loan added periodically to your balance – essentially the cost of borrowing. Interest is a way for lenders to make money from loans. Your monthly payment often pays interest first, with the remainder paid on the amount you originally borrowed (the principal).
Getting a low interest rate could help you save money over the life of the loan and pay off your debt faster.
What is a fixed or variable rate loan?
Here is the difference between a fixed rate and a variable rate:
- With a fixed rate, Your monthly payment amount will remain the same for the life of your loan.
- With a variable rate, your payments may increase or decrease as interest rates change.
Comparison shopping for private student loan rates is easy when you use Credible.
Calculate your savings
Use a student loan interest calculator will help you estimate your monthly payments and the total amount you will owe over the life of your federal or private student loans.
Once you enter your information, you will be able to see what your estimated monthly payment will be, the total you will pay in interest over the life of the loan, and the total amount you will repay.
About Credible
Credible is a multi-lender marketplace that helps consumers discover the financial products best suited to their specific situation. Credible’s integrations with leading lenders and credit reporting agencies allow 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 unparalleled customer experience, as evidenced by over 7,700 positive Trustpilot reviews and a TrustScore of 4.8/5.
