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Fixed-rate student loan refinancing hits new low in January

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The latest trends in interest rates for student loan refinancing from the Credible marketplace, updated weekly. (iStock)

Borrowers with excellent credit seeking to refinance student loans during the week ending Jan. 11, 2021 could lock in low rates on fixed-rate 10-year loans with lenders competing through the Credible marketplace.

For borrowers with credit scores of 720 or higher who used the Credible marketplace to select a lender, during the week ending Jan. 11:

  • Rates on 10-year fixed-rate loans averaged 3.78%, down from 3.83% the week before and 4.85% a year ago.
  • Rates on 5-year variable-rate loans averaged 3.29%, unchanged from 3.29% the week before but down from 3.70% a year ago.

If you're curious about what kind of student loan refinance rates you may qualify for, you can use an online tool like Credible to compare options from different private lenders. Checking your rates won't affect your credit score.

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.

You can use Credible to compare student loan refinancing rates from multiple private lenders at once 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.