Interest rates on private student loans are falling for 5 and 10 years
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The latest private student loan interest rates on Credible Marketplace, updated weekly. (iStock)
For the week of October 24, 2022, on average private student loan rates significantly decreased for borrowers with a credit score of 720 or higher who used the Credible marketplace for 10-year fixed-rate loans and 5-year variable-rate loans.
- 10-year fixed rate: 7.68%, compared to 8.08% a week earlier, -0.40
- 5-year variable rate: 7.05%, compared to 8.37% a week earlier, -1.32
Through Credible you can compare private student loan rates from multiple lenders without affecting your credit score.
Private student loan interest rates fell this week for both 10-year fixed-rate loans and 5-year variable-rate loans. Ten-year bonds fell 0.40 percentage points, while 5-year rates fell more, by 1.32 percentage points. Despite the reduction this week, rates for both loan terms are higher than this time last year.
However, it’s worth noting that borrowers with good credit can find a lower rate with a private student loan than with some federal loans. For the 2022-23 school year, federal student loan interest rates will range from 4.99% to 7.54%. Private student loan rates for borrowers with good to excellent credit can be lower right now.
Because federal loans have certain benefits, such as access to income-based repayment plans, you should always exhaust your federal student loan options first before turning to private student loans to cover any funding gaps. Private lenders such as banks, credit unions and online lenders provide private student loans. You can use private loans to pay for education and living expenses that may not be covered by your federal education loans.
Interest rates and terms of private student loans can vary depending on your financial situation, credit history and the lender you choose.
Take a look at rates from Credible Lender Partners for borrowers who used the Credible Marketplace to select a lender during the week of October 24:
Private student loan rates (for students and undergraduates)
Weekly trends in student loan rates

Who sets federal and private interest rates?
Congress sets federal student loan interest rates each year. These fixed interest rates depend on the type of federal loan you’re taking out, your income status, and the year you’re in school.
Private student loan interest rates can be fixed or variable and depend on your credit, repayment term and other factors. Generally, the better your credit score, the lower your interest rate is likely to be.
You can compare the rates of several student loans using Credible.
How does student loan interest work?
The interest rate is the percentage of the loan that is periodically credited to your balance – essentially the cost of borrowing the money. Interest is one way lenders can make money on loans. Your monthly payment often pays the interest first, and the rest goes towards the amount you originally borrowed (the principal).
Getting a low interest rate can help you save money over the life of your loan and pay off your debt faster.
What is a fixed rate loan instead of a variable rate loan?
Here’s the difference between a fixed rate and a variable rate:
- Z fixed rate, the monthly payment amount will remain unchanged for the duration of the loan.
- Z variable rate, your payments may go up or down as interest rates change.
Comparison shopping for private student loan rates easy when you use Credible.
Calculate your savings
Using a student loan interest calculator will help you estimate your monthly payments and the total amount you will owe over the life of your federal or private student loan.
After you enter your information, you’ll be able to see your estimated monthly payment, the total amount you’ll pay in interest over the life of the loan, and the total amount you have to pay back.
About Credible
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