money Student Loan Refinance Interest Rates Sink Even Further Into Record Low Territory in June
Student loan refinance rates for 10-year loans sunk to a new record low during the month of June 2021, and rates for 5-year loans fell below 3% for the first time this year. Here are the latest trends in interest rates for student loan refinancing from the Credible marketplace, updated monthly.
During the month of June, 2021:
Rates on 10-year fixed-rate loans averaged a new record monthly low of 3.59%, down from 3.61% in May, and 4.40% a year ago.
Rates on 5-year variable-rate loans averaged 2.92%, down from 3.05% in May and up from 2.75% a year ago.
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 below shows average prequalified rates for borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender. The chart shows average monthly rates for the last three years.
Student loan refinancing historical rate trends
Current student loan refinancing rates by credit score
If you qualify for student loan refinancing, the interest rate you may be offered can depend on factors like your credit score, the type of loan you’re seeking (fixed or variable rate), and the loan repayment term.
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 multiple lenders so you can compare your options. Credible makes this easy — you can compare your prequalified rates from multiple vetted 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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