Still time to save: Student loan refinance rates are falling for 5-year adjustable-rate loans

Our goal here at Credible Operations, Inc., NMLS number 1681276, hereinafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote products from our partner lenders that reward us for our services, all opinions are our own.

The latest student loan refinance interest rate trends from the Credible marketplace, updated weekly. (one)

Interest rates for well-qualified borrowers using the credible marketplace Refinance student loans fell this week for 5-year adjustable-rate loans, while rates for 10-year fixed-rate loans rose.

For borrowers with credit scores of 720 or higher who used the credible marketplace to select a lender during the week of November 28, 2022:

  • Interest rates on 10-year fixed rate refinancing loans averaged 6.21%, up from 5.76% the week before and up from 3.40% a year ago. Interest rates for this term hit their lowest point in 2022 at 3.44% in the week of January 10th.
  • Interest rates on 5-year adjustable rate refinancing loans averaged 3.89%, down from 3.93% the week before and up from 2.49% a year ago. Interest rates for this term hit their lowest point in 2022 at 2.51% in the week of July 4th.

Weekly student loan refinance interest rate trends

If you are curious about what type of student loan refinance rates you may qualify for, You can use an online tool like Credible Compare offers from different private lenders. Reviewing your rates will not affect your credit score.

Current student loan refinancing rates by FICO score

To alleviate the economic impact of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until at least June 30, 2023. As long as this relief exists, there is little incentive to do so Refinance federal student loans. But many personal student loan borrowers are taking advantage of the low-interest-rate environment to refinance their educational debt at lower rates.

If you qualify for student loan refinance, the interest rate you may be offered may depend on factors such as your FICO score, the type of loan you want (fixed or variable rate), and the loan repayment period.

The chart above shows that good credit can help you get a lower rate, and interest rates tend to be higher on loans with fixed rates and longer repayment terms. Since each lender has their own way of rating borrowers, it’s a good idea to request interest 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 to Refinancing with bad credit, you may need to apply with a co-signer. Or you can work on improving your credit score 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 once without hurting your credit score.

How student loan refinance rates are determined

The interest rates that private lenders charge for refinancing student loans depend, among other things, 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.

About believable

Credible is a multi-lender marketplace that enables consumers to discover financial products that best fit their unique circumstances. Credible’s integration with leading lenders and credit reporting agencies allows consumers to quickly compare accurate, personalized loan options — without compromising their personal information or compromising their credit score. The credible marketplace offers an unparalleled customer experience, which is reflected in over 5,000 positive Trustpilot reviews and a TrustScore of 4.7/5.

Leave a Reply

Your email address will not be published. Required fields are marked *