There has been an increase in the average private student loan rates for borrowers with credit scores of 720 or higher.
Private student loan interest rates climb for 5- and 10-year loans. (Photo: Everyday Health)
Long-Term Private Student Loan Increased Rates
This is implemented for those who used the Credible marketplace to take out 10-year fixed-rate loans and 5-year variable-rate loans. As stated in a post by Fox Business, a 10-year fixed-rate loan is now up to 7.41% from 7.07% while a 5-year fixed-rate loan is now up to 8.90% from 8.46%.
You can compare private student loan rates from multiple lenders through Credible without affecting your credit score. The increase for both loan terms is higher than last year. It is good to note that borrowers with good credit may find a lower rate with a private student loan than with some federal loans.
The Standards for the Federal and Private Interest Rates
Private student loan interest rates climb for 5- and 10-year loans. (Photo: Credible)
Every year, congress is in charge of setting the federal student loan interest rates. The rates mainly depend on three criteria; the type of federal loan you take out, your dependency status, and your year in school. On the other hand, private student loan interest rates can be fixed or variable and depend on your credit, repayment term, and other factors. The rates would be dependent on your credit score.
