Average Private Student Loan Interest Rates<\/h2>\n![\"\"](\"https:\/\/winteraly.com\/wp-content\/uploads\/2025\/05\/full.png\")
<\/img><\/div>\nFor borrowers with a credit score of 720 or higher who prequalified on Credible.com’s student loan marketplace from May 19 to May 24, the average fixed interest rate on a 10-year private student loan was 7.93%<\/strong>. On a five-year variable-rate loan, the rate was 8.93%<\/strong>, according to Credible.com.<\/p>\nThese rates are accurate as of the week of May 19, 2025.<\/p>\n
Related:<\/strong> Best Private Student Loans<\/a><\/span><\/p>\nFixed-Rate Loans<\/strong><\/h3>\nThe average fixed rate on 10-year private student loans last week dropped by 0.58%<\/strong> to 7.93%<\/strong>. The week prior, the average stood at 8.51%<\/strong>.<\/p>\nBorrowers currently in the market for a private student loan will receive a lower rate than they would have at this time last year. At this time last year, the average fixed rate on a 10-year loan was 8.57%<\/strong>, 0.64%<\/strong> higher than today\u2019s rate.<\/p>\nIf you were to finance $20,000 in student loans at today\u2019s average fixed rate, you’d pay around $242<\/strong> per month and approximately $9,030<\/strong> in total interest over 10 years, according to Forbes Advisor\u2019s student loan calculator.<\/a><\/span><\/p>\nVariable-Rate Loans<\/strong><\/h3>\nLast week, the average rate on a variable five-year student loan fell to 8.93%<\/strong> on average from 9.89%<\/strong>.<\/p>\nIn contrast to fixed rates, variable interest rates fluctuate<\/a><\/span> over the course of a loan term. Variable rates may start lower than fixed rates, especially during periods when rates are low overall, but they can rise over time.<\/p>\nPrivate lenders often offer borrowers the option to choose between fixed and variable interest rates. Fixed rates may be the safer bet for the average student, but if your income is stable and you plan to pay off your loan quickly, it could be beneficial to choose a variable loan.<\/p>\n
Let’s say you financed a $20,000 five-year loan with a variable interest rate of 8.93%<\/strong>. You’d pay about $414<\/strong> on average per month. You’d pay approximately $4,869<\/strong> in total interest over the life of the loan. Keep in mind that since the interest is variable, it could fluctuate up or down from month to month.<\/p>\n![\"\"](\"https:\/\/winteraly.com\/wp-content\/uploads\/2025\/05\/full-1.png\")
<\/img><\/div>\nHow To Get a Private Student Loan<\/h2>\n
Before you look to a private student loan, consider a federal student loan as your first option. The interest rates on federal student loans are generally lower. Federal student loans also tend to have far more generous repayment and forgiveness options. Yet, if you’ve reached the borrowing limits for federal student loans or if you’re ineligible for them, private student loans can be a good solution.<\/p>\n
When shopping for a private student loan, you’ll generally need to apply directly through a non-federal lender. This includes banks, credit unions, nonprofit organizations, state agencies, colleges and online entities.<\/p>\n
It’s important to note that you’ll need a qualified co-signer if you have limited credit history, as undergraduates often do.<\/p>\n
Here’s what to consider when applying for a private student loan:<\/p>\n
\n- Make sure you qualify.<\/strong> Private student loans are credit-based, and lenders typically require a credit score in the high 600s. This is why having a co-signer can be particularly beneficial.<\/li>\n
- Apply directly through lenders.<\/strong> You can apply directly on the lender’s website, via mail or over the phone.<\/li>\n
- Compare your options.<\/strong> Look at what each lender offers and compare the interest rate, term, future monthly payment, origination fee and late fee. Also, check to see if the lender offers a co-signer release so that the co-borrower can eventually come off of the loan.<\/li>\n<\/ul>\n
Shopping for Private Student Loans<\/h2>\n
When looking for the best private student loan<\/a><\/span> option, take a close look at the overall cost of the loan, including the interest rate and fees. It’s also important to consider the type of help the lender offers if you can’t afford your payments.<\/p>\nRemember, those with good or excellent credit typically get the best rates.<\/p>\n
How much should you borrow? Experts generally recommend borrowing no more than you’ll earn in your first year out of college. How much can you borrow? Some lenders cap the amount you can borrow each year, while others don’t. When you’re shopping around for a loan, take to lenders about how the loan is disbursed and what costs it will cover.<\/p>\n
What Is the Current Federal Student Loan Interest Rate?<\/h2>\n
If you need to borrow for school, federal student loans are generally the best option. This is because federal loans offer various borrower protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, most federal loans don’t require a credit check or co-signer.<\/p>\n
![\"\"](\"https:\/\/winteraly.com\/wp-content\/uploads\/2025\/05\/full-2.png\")
<\/img><\/div>\nHow Your Interest Rate Is Determined<\/h2>\n
Lenders offering private student loans generally offer both fixed and variable interest rates. These rates are, in part, based on your creditworthiness. Generally, the higher your credit score, the lower the interest rate you’ll receive. But credit history, income, the degree you’re working on and your career can factor into the interest rate you receive as well.<\/p>\n
Know the Benefits of Private Student Loans<\/h2>\n
While private student loans shouldn’t necessarily be your first financial aid option, they can come with a variety of benefits, including the following:<\/p>\n
\n- You can often borrow as much as you need.<\/strong> Some private lenders let you borrow up to your school-certified cost of attendance minus any previously awarded financial aid.<\/li>\n
- You might not have to pay fees.<\/strong> The best private lenders don’t charge origination or disbursement fees, so you won\u2019t have extra charges on your loan in addition to interest.<\/li>\n
- Good credit means better interest rates.<\/strong> While your credit score<\/a><\/span> doesn\u2019t matter with most types of federal student loans, it does impact private borrowing. Lenders often offer competitive rates to borrowers with excellent credit or a creditworthy co-signer<\/a><\/span>.<\/li>\n
- It’s easy to apply online.<\/strong> Applying for a private student loan is often a quick online process that you can do at any time throughout the school year. Many lenders also let you prequalify for loans online, making it easy to shop around and compare offers from multiple banks.<\/li>\n
- International students may be eligible.<\/strong> Some lenders provide loans for international students attending school in the U.S. If you\u2019re an international student, you may have to apply with a U.S.-based co-signer to qualify.<\/li>\n
- Your lender may offer useful perks.<\/strong> Depending on the lender, you may qualify for some, from interest rate discounts to cash-back bonuses. Some offer a range of repayment terms, lengthy grace periods, forbearance and deferment options and other borrower protections.<\/li>\n<\/ul>\n\n
<\/img><\/div>\nFor borrowers with a credit score of 720 or higher who prequalified on Credible.com’s student loan marketplace from May 19 to May 24, the average fixed interest rate on a 10-year private student loan was 7.93%<\/strong>. On a five-year variable-rate loan, the rate was 8.93%<\/strong>, according to Credible.com.<\/p>\n These rates are accurate as of the week of May 19, 2025.<\/p>\n Related:<\/strong> Best Private Student Loans<\/a><\/span><\/p>\n The average fixed rate on 10-year private student loans last week dropped by 0.58%<\/strong> to 7.93%<\/strong>. The week prior, the average stood at 8.51%<\/strong>.<\/p>\n Borrowers currently in the market for a private student loan will receive a lower rate than they would have at this time last year. At this time last year, the average fixed rate on a 10-year loan was 8.57%<\/strong>, 0.64%<\/strong> higher than today\u2019s rate.<\/p>\n If you were to finance $20,000 in student loans at today\u2019s average fixed rate, you’d pay around $242<\/strong> per month and approximately $9,030<\/strong> in total interest over 10 years, according to Forbes Advisor\u2019s student loan calculator.<\/a><\/span><\/p>\n Last week, the average rate on a variable five-year student loan fell to 8.93%<\/strong> on average from 9.89%<\/strong>.<\/p>\n In contrast to fixed rates, variable interest rates fluctuate<\/a><\/span> over the course of a loan term. Variable rates may start lower than fixed rates, especially during periods when rates are low overall, but they can rise over time.<\/p>\n Private lenders often offer borrowers the option to choose between fixed and variable interest rates. Fixed rates may be the safer bet for the average student, but if your income is stable and you plan to pay off your loan quickly, it could be beneficial to choose a variable loan.<\/p>\n Let’s say you financed a $20,000 five-year loan with a variable interest rate of 8.93%<\/strong>. You’d pay about $414<\/strong> on average per month. You’d pay approximately $4,869<\/strong> in total interest over the life of the loan. Keep in mind that since the interest is variable, it could fluctuate up or down from month to month.<\/p>\n Before you look to a private student loan, consider a federal student loan as your first option. The interest rates on federal student loans are generally lower. Federal student loans also tend to have far more generous repayment and forgiveness options. Yet, if you’ve reached the borrowing limits for federal student loans or if you’re ineligible for them, private student loans can be a good solution.<\/p>\n When shopping for a private student loan, you’ll generally need to apply directly through a non-federal lender. This includes banks, credit unions, nonprofit organizations, state agencies, colleges and online entities.<\/p>\n It’s important to note that you’ll need a qualified co-signer if you have limited credit history, as undergraduates often do.<\/p>\n Here’s what to consider when applying for a private student loan:<\/p>\n When looking for the best private student loan<\/a><\/span> option, take a close look at the overall cost of the loan, including the interest rate and fees. It’s also important to consider the type of help the lender offers if you can’t afford your payments.<\/p>\n Remember, those with good or excellent credit typically get the best rates.<\/p>\n How much should you borrow? Experts generally recommend borrowing no more than you’ll earn in your first year out of college. How much can you borrow? Some lenders cap the amount you can borrow each year, while others don’t. When you’re shopping around for a loan, take to lenders about how the loan is disbursed and what costs it will cover.<\/p>\n If you need to borrow for school, federal student loans are generally the best option. This is because federal loans offer various borrower protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, most federal loans don’t require a credit check or co-signer.<\/p>\n Lenders offering private student loans generally offer both fixed and variable interest rates. These rates are, in part, based on your creditworthiness. Generally, the higher your credit score, the lower the interest rate you’ll receive. But credit history, income, the degree you’re working on and your career can factor into the interest rate you receive as well.<\/p>\n While private student loans shouldn’t necessarily be your first financial aid option, they can come with a variety of benefits, including the following:<\/p>\nFixed-Rate Loans<\/strong><\/h3>\n
Variable-Rate Loans<\/strong><\/h3>\n
<\/img><\/div>\nHow To Get a Private Student Loan<\/h2>\n
\n
Shopping for Private Student Loans<\/h2>\n
What Is the Current Federal Student Loan Interest Rate?<\/h2>\n
<\/img><\/div>\nHow Your Interest Rate Is Determined<\/h2>\n
Know the Benefits of Private Student Loans<\/h2>\n
\n