There has never been a better time than now to refinance your student loan at a fixed rate with better terms.
Fixed student loan refinancing rates hit a new record low for the week of December 13, reaching 3.33% for well-qualified borrowers who opted for the 10-year period, according to reliable data. This breaks the previous record of 3.35% during the week of November 22nd.
Refinancing at a lower student loan rate can help you reduce your monthly payments, pay off your debt faster and save money on interest over the life of the loan.
Keep reading to learn more about the latest student loan refinancing rate trends, as well as how to install a standard low interest rate on college debt. You can browse current rates from real private lenders in the table below, and visit Credible for an estimated rate for free without affecting your credit score.
What to do if your student loan service stops working
Student loan interest rates have been fixed at record low levels with high variable interest rates
If you are considering refinancing your student loan debt into a new fixed rate loan, now is the time to do so.
Aside from hitting a record low of 3.33%, the fixed interest rates on the 10-year student loan refinancing term are also significantly down from the same period last year, when they were at 3.86%.
However, variable interest rates on 5-year refinancing loans increased to 2.82% during the week of December 13, up from 2.75% in the previous week.. Average variable rates are down significantly from the same period last year, though, when they averaged 3.20%.
Capital One introduces new student rewards credit cards
Keep in mind that refinancing your federal student loans into a private loan will make you ineligible for certain government benefits, such as administrative forbearance, income-driven repayment plans, and student loan forgiveness programs.
If you decide to refinance your student loan debt into a new loan with better terms, visit Credible to compare refinancing rates across several private lenders. Next, use the Student Loan Refinance Calculator to determine if this debt repayment option is right for you.
Top 14 Student Loan Financing Companies for 2021
How to secure a low interest rate on a student loan
Although private student loan refinancing rates are near all-time lows, the rate you ultimately receive depends on a number of factors. Lenders set student loan refinancing and eligibility rates based on the following criteria:
- The credit history of the borrower. Borrowers with good credit will qualify for the lowest possible student loan refinancing rates. Borrowers with bad credit can consider seeking the help of a creditworthy cosigner to improve their chances of getting a low rate loan.
- loan terms. Large loans with longer repayment plans tend to have higher interest rates, while shorter loans with smaller balances carry lower interest rates. Longer loans also tend to come with lower monthly payments, while shorter loans can help you pay off your debt faster.
- price type (fixed or variable). While fixed rates are locked in for the life of the loan, variable interest rates can fluctuate over time with the market index.
15 Best Debt Consolidation Loans for Fair Credit
Since student loan refinancing rates and eligibility requirements can vary from one lender to another, it is important to compare refinancing offers across many lenders. Most student loan lenders allow you to pre-qualify to see your estimated rates with a simple credit query, And that doesn’t affect your credit score.
You can view pre-qualified loan repayment offers from Credible partner lenders for free by filling out a single form in just a few minutes. This way, you can find the lowest possible rates for your financial situation without risk.
How to Avoid Mortgage Prepayment Fines and Incorporation Fees
Have a question related to financing, but don’t know who to ask? Send an email to our certified money expert email@example.com And your question may be answered by Credible in the Money Expert column.