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Many borrowers looking to refinance student loans in January 2021, froze historically low rates on 10-year fixed rate loans offered by competing lenders in the Credible market.
For borrowers with a credit score of 720 or higher and who have used the Credible Marketplace to select a lender, in January 2021:
- 10-year fixed-rate loan rates fell to a new record low of 3.82%. 10-year fixed-rate loan rates fell from 3.89% in December to 4.84% a year ago.
- 5-year floating rate loan rates averaged 3.28%, little changed from 3.27% in December, but down from 3.72% a year ago.
The chart above shows the average prequalified rates for borrowers with a credit score of 720 or higher who have used the Credible Marketplace to select a lender. The graph shows the average monthly rates for the past 3 years.
If you are curious about what type of rate you may be entitled to, you can use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.
To alleviate the economic effects of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least September 30, 2021. 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 the low interest rate environment to refinance their student debt at lower rates.
For those who qualify for student loan refinancingThe interest rates offered by lenders can depend on factors such as your credit score, the type of loan you are looking for (fixed or variable rate) and the repayment term of the loan.
The chart above shows how the borrower’s credit rating and the length of the loan affect rates. The rates tend to be higher on fixed interest rate and longer term loans. Since each lender has their own method of evaluating borrowers, it is a good idea to request student loan refinance rates from multiple lenders so that you can compare your options.
You can use Credible to compare student loan refinance rates from multiple private lenders at once without affecting your credit score.
Credible is a multi-lender marketplace that allows consumers to discover the financial products that best suit their particular circumstances. Credible’s integrations with major lenders and credit bureaus allow consumers to quickly compare accurate and personalized loan options without compromising their personal information or affecting their credit score. The Credible Marketplace offers an unmatched customer experience, as evidenced by more than 3,700 positive reviews on Trustpilot and a 4.7 / 5 Octoberscore.