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Our goal at Credible is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own.
Borrowers with excellent credit seeking to refinance student loans through the Credible Market saw average 10-year fixed-rate loan rates fall to a new record low of 4.08% in October. (iStock)
Borrowers with excellent credit looking to refinance student loans in October were given the opportunity to lock in the lowest fixed rates ever offered on 10-year loans by competing lenders in the Credible Market.
For borrowers with a credit score of 720 or higher who have used the Credible Marketplace to select a lender, as of October 2020:
- 10-year fixed-rate loan rates fell for the fourth consecutive month to a new record low of 4.08%. 10-year fixed rate loan rates fell from 4.16% in September to 4.74% a year ago.
- The rates on 5-year variable rate loans averaged 3.26%, down from 3.13% in September but down from 3.49% a year ago.
The graph 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 might qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates will not affect your credit score.
You can also use a student loan refinance calculator to estimate the savings between your existing loan and a new loan.
To relieve the economic effects of the COVID-19 pandemic, interest and payments on federal student loans have been suspended until December 31, 2020. 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 are eligible for student loan refinancing, the interest rates offered by lenders may depend on factors like 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. 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 several private lenders at once without affecting your credit score.
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