Student Loan Refinance Interest Rates Stick Around Historical Lows

·2 min read

Student loan refinance rates for 10-year loans continued to linger near yearly lows during the first week of July after sinking to record lows in June. Meanwhile, rates for 5-year loans inched higher.

Here are the latest trends in interest rates for student loan refinancing from the Credible marketplace, updated weekly.

During the week of July 5, 2021:

  • Rates on 10-year fixed-rate loans averaged 3.65%, the same as the week before and down from 4.32% a year ago. Rates reached a record low during the week of June 14, 2021.

  • Rates on 5-year variable-rate loans averaged 3.05%, up slightly from 3.04% the week before and 2.78% a year ago. Variable-rate loans were at their lowest of the year during the week of June 14, 2021.

Student loan refinancing historical rate trends

Student loan refinancing can be a good strategy for paying off education debt faster or lowering your monthly payments. But a lot depends on the interest rate you could qualify for.

The chart above shows average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender. The chart lists average weekly rates for the last year.

If you qualify for a student loan refinancing, the interest rate offered to you can depend on factors such as:

  1. Your credit score

  2. The type of loan you’re seeking (fixed or variable rate)

  3. The loan repayment term

Current student loan refinancing rates by credit score

The chart above shows that a good credit score can help you get a lower rate, and that rates tend to be higher on loans with fixed interest rates and longer repayment terms. Because each lender has its own method of evaluating borrowers, it’s a good idea to request student loan refinancing rates from as many lenders as possible so you can compare your options.

Through Credible, you can compare your prequalified rates from multiple vetted refinancing lenders without affecting your credit score.

About Credible

Credible is a multi-lender marketplace that empowers consumers to discover financial products that are the best fit for their unique circumstances. Credible’s integrations with leading lenders and credit bureaus allow consumers to quickly compare accurate, personalized loan options ― without putting their personal information at risk or affecting their credit score.

The Credible marketplace provides an unrivaled customer experience, as reflected by over 3,700 positive Trustpilot reviews and a TrustScore of 4.7/5.

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