The interest rates for student loan refinancing experienced a slight increase this week for both 5- and 10-year variable-rate loans among well-qualified borrowers utilizing the Credible marketplace.
During the week of June 26, 2023, borrowers with credit scores of 720 or higher, who opted for a lender through the Credible marketplace, encountered the following rates:
- The average rate for 10-year fixed-rate refinance loans stood at 7.19%, rising from 6.49% the previous week and 5.34% a year ago. The lowest point for rates in 2022 for this term was reached during the week of January 10 at 3.44%.
- The average rate for 5-year variable-rate refinance loans was 9.93%, up from 6.88% the previous week and 3.23% a year ago. The lowest point for rates in 2022 for this term was reached during the week of July 4 at 3.12%.
Weekly trends in student loan refinancing rates
If you are interested in exploring the potential rates available for your student loan refinancing, online tools like Credible can assist you in comparing options from various private lenders. Checking these rates will not have an impact on your credit score.
Current Student Loan Refinancing Rates Based on FICO Score
In response to the economic impact of the COVID-19 pandemic, the suspension of interest and payments on federal student loans has been extended until at least the end of this year, potentially even beyond June 30, 2023. Given this relief, there is limited motivation to refinance federal student loans. However, many borrowers with private student loans are seizing the opportunity presented by the low interest rate environment to refinance their educational debt at more favorable rates.
If you meet the criteria for student loan refinancing, the interest rate offered to you will depend on various factors, such as your FICO score, the loan type (fixed or variable rate), and the repayment term.
The accompanying chart illustrates that a good credit score can help secure a lower interest rate, and rates typically trend higher for loans with fixed interest rates and longer repayment terms. As each lender employs its own evaluation methodology for borrowers, it is advisable to request rates from multiple lenders in order to compare your options. Utilizing a student loan refinancing calculator can assist in estimating potential savings.
For individuals seeking to refinance with a poor credit history, applying with a cosigner may be necessary. Alternatively, focusing on improving your credit before applying can also enhance your chances. After graduation, many lenders permit children to refinance parent PLUS loans under their own name.
Credible offers the convenience of comparing rates from multiple private lenders simultaneously, without impacting your credit score.
Determining Student Loan Refinancing Rates
The interest rates offered by private lenders for refinancing student loans are influenced by several factors. These include the state of the economy, the prevailing interest rate environment, the duration of the loan term, the loan type (fixed or variable rate), the creditworthiness of the borrower, and the operating costs and profit margin of the lender.
About Credible
Credible is a multi-lender marketplace that enables individuals to explore financial products that best suit their specific circumstances. Through Credible’s collaborations with leading lenders and credit bureaus, consumers can swiftly compare accurate and personalized loan options, all while safeguarding their personal information and avoiding any impact on their credit score. The Credible marketplace offers an unparalleled customer experience, evident in its outstanding Trustpilot reviews, with over 5,000 positive ratings and a TrustScore of 4.7/5.