Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours.
Borrowers with excellent credit looking to refinance their student loans through the Credible Market saw average 10-year fixed-rate loan rates fall to a new high of 4.08% in October. (iStock)
Borrowers with excellent credit seeking refinance student loans in October had 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 and 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 4.16% in September and 4.74% a year ago.
- 5-year floating rate loan rates averaged 3.26%, down from 3.13% in September, but down from 3.49% a year ago.
The chart 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 may be entitled to, 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 alleviate the economic impacts 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 low interest rates to refinance their student debt at lower rates.
For those who qualify for student loan refinancingThe interest rates offered by lenders can depend on factors such as your credit rating, 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 loans with fixed interest rates and longer repayment terms. Since each lender has their own method of evaluating borrowers, it is a good idea to apply for student loan refinance rates from multiple lenders so that you can compare your options.
You can use Credible to compare student loan refinancing rates from several private lenders immediately without affecting your credit score.
