Student loan refinancing rates are falling: 5-year variable rates have fallen below 3 percent for the second time.
Borrowers with excellent credit scores who use Credible to refinance student loans have seen their rates drop for 10-year fixed-rate loans and 5-year variable-rate loans, respectively.
Borrowers with credit scores of 720 or better who used the Credible marketplace to select a lender during the week of February 21, 2022, will be eligible for the following:
Refinance rates on 10-year fixed-rate mortgages averaged 3.71 percent this week, a decrease from 3.75 percent the previous week and 3.73 percent a year earlier. It was during the week of November 22 when interest rates for this term fell to their lowest point in 2021 when they were at 3.35 percent.
A year ago, the average rate on 5-year variable-rate refinance loans was 3.56 percent, but it was 2.92 percent this week, down from 3.10 percent the week before and 3.56 percent a year ago.
In the week of November 22nd, rates for this term fell to their lowest level since the beginning of 2021, when they were 2.41 percent.
Student loan refinancing interest rate trends for the week
If you’re interested in learning what kind of student loan refinance rates you might be eligible for, you can use an online tool like Credible to compare rates from several private lenders. Checking your interest rates will have no effect on your credit score.
Student loan refinancing rates based on FICO scores are currently available.
Interests and payments on federal student loans have been postponed until at least May 1, 2022, in order to provide relief from the economic effects of the COVID-19 epidemic, which began in April.
Because of this relief, there is little incentive to refinance federal student loans as long as it is in effect. A large number of borrowers who have private student loans, however, are taking advantage of the low-interest-rate environment to refinance their education debt at a more favorable interest rate.
The interest rate you may be offered if you qualify for a refinance of your student loans will be determined by a variety of criteria, including your FICO score, the type of loan you’re seeking (fixed or variable rate), and the length of time you plan to repay your student loans.
The chart above illustrates how having good credit can help you achieve a lower interest rate, as well as how rates are often higher on loans with set interest rates and longer repayment durations.
You should seek rates from various lenders so that you can compare your possibilities because each lender has its own unique method of analyzing borrowers. Requesting rates from multiple lenders will allow you to evaluate your options. A student loan refinancing calculator will assist you in estimating how much you might save on your student loans.
If you have terrible credit and wish to refinance, you may be required to apply with a cosigner to be approved. Another option is to improve your credit score prior to submitting an application. Many lenders will allow children to refinance parent PLUS loans in their own names after they have graduated from high school or from college.
You can use Credible to compare interest rates from multiple private lenders at the same time without having your credit score affected in any way.
The process by which interest rates for student loan refinancing are determined
Student loan refinancing rates charged by private lenders vary depending on several factors, including the economy and interest rate environment, loan length, loan type (fixed-rate or variable-rate), the borrower’s creditworthiness, and the lender’s operating costs and profit margin.