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The latest private student loan interest rates from the Credible marketplace, updated weekly. (iStock)
On average in the week of September 2, 2024 private student loan rates increased for borrowers with credit scores of 720 or higher who used the Credible marketplace to take out 5-year variable rate loans and 10-year fixed rate loans.
- 10-year fixed interest rate: 7.95%, compared to 7.59% the week before, +0.36
- Variable interest rate on 5 years: 8.67%, compared to 8.38% the week before, +0.29
Credible allows you to compare private student loan rates from multiple lenders.
For private student loans with a ten-year term, interest rates increased by 0.36 percentage points, while the variable interest rate on student loans with a five-year term rose by 0.29 percentage points.
Borrowers with good credit may find a lower rate on a private student loan than on some federal loans. For the 2024-2025 academic 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 right now.
Because federal loans come with certain benefits, such as access to income-driven repayment plans, you should always exhaust federal student loan options first before turning to private student loans to cover any funding shortfalls. Private lenders such as banks, credit unions and online lenders provide private student loans. You can use private loans to pay for education and living expenses that may not be covered by your federal education loans.
Interest rates and terms on private student loans can vary depending on your financial situation, credit history and the lender you choose.
Private Student Loan Rates (Graduate and Undergraduate)
Who sets federal and private interest rates?
Congress sets federal student loan interest rates every year. These fixed interest rates depend on the type of federal loan you take out, your dependency status, and your school year.
Interest rates for private student loans can be fixed or variable and depend on your credit, repayment term and other factors. As a general rule, the better your credit score, the lower your interest rate is likely to be.
Credible allows you to compare rates from multiple student loan providers.
How does student loan interest work?
An interest rate is a percentage of the loan that is tacked onto your balance periodically – essentially the cost of borrowing money. Interest is one way lenders can make money on loans. Your monthly payment often pays interest first, while the remainder goes toward the amount you initially borrowed (the principal).
Getting a low interest rate can help you save money over the life of the loan and pay off your debts faster.
What is a fixed versus variable rate loan?
This is the difference between a fixed and a variable rate:
- Immediately fixed rate, your monthly payment amount remains the same for the life of your loan.
- Immediately variable rate, your payments may increase or decrease based on changing interest rates.
Comparing private student loan rates is easy when you use Credible.
Calculate your savings
Using a student loan interest calculator can 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 can see what your estimated monthly payment will be, the total you’ll pay in interest over the life of the loan, and the total amount you’ll pay back.
About Credible
Credible is a multi-lender marketplace that enables consumers to discover financial products that best fit their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options – without compromising their personal information or impacting their credit score. The Credible marketplace offers an unparalleled customer experience, as evidenced by about 7,700 positive Trustpilot reviews and a TrustScore of 4.8/5.
