Fixed refinancing rates for student loans set another record low

The refinancing rates for fixed student loans have fallen again to a record low, according to Credible. Refinancing student loans at a lower interest rate can help borrowers settle their debts faster, reduce their student loan payments, and save money on interest rates (iStock)

There has never been a better time to refinance your student loan at a fixed rate on better terms.

Refinancing rates for fixed student loans hit a new record low in the week of December 13th, reaching 3.33% for well-qualified borrowers who opted for the 10-year term, according to Credible data. This breaks the previous record of 3.35% set in the week of November 22nd.

Refinancing to a lower student loan can help you reduce your monthly payments, pay off your debt faster, and save money on interest over the life of the loan.

Read on to learn about the latest trends in student loan refinance rates and how you can get yourself a record low interest rate on your college debt. You can browse the current rates from real private lenders in the table below and visit Credible to see your estimated interest rate for free without affecting your creditworthiness.

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Fixed refinance rates on student loans at record lows as floating rates rise

If you are considering moving your student loan debt into a new fixed rate loan, now is the time to do so.

In addition to a record low of 3.33%, the fixed interest rates for the 10-year refinancing term of the student loan are also well below the previous year’s figure of 3.86%.

However, the floating rate on 5-year refinancing loans rose to 2.82% in the week of December 13, up from 2.75% the week before. However, the average variable interest rates are significantly lower than at the same point in time in the previous year, when they averaged 3.20%.

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Remember, by refinancing your federal student loan into a private loan, you won’t be eligible for certain government benefits, such as:

If you decide to refinance your student loan debt into a new loan with better terms, visit Credible to compare refinance rates with multiple private lenders. Then use a student loan refinance calculator to determine if this debt settlement option is right for you.

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How to secure a low interest rate for a student loan

While the refinancing rates on private student loans are near the all-time low, the interest rate you will ultimately get depends on a number of factors. Lenders determine refinancing rates and eligibility for student loans based on the following criteria:

  • The borrower’s credit history. Borrowers with good credit qualify for the lowest possible refinance rates on student loans. Bad credit borrowers may consider seeking the help of a creditworthy co-signer to increase their chances of obtaining a low interest rate loan.
  • The loan terms. Large loans with longer repayment schedules usually have higher interest rates, while shorter loans with smaller amounts have lower interest rates. Longer loans also tend to come with lower monthly payments, while shorter loans can help you pay off your debts faster.
  • The tariff type (fixed or variable). While fixed rates are locked in for the life of the loan, floating rates can fluctuate over time with the market index.

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Because refinancing rates and student loan eligibility requirements can vary from lender to lender, it is important to compare refinancing offers from multiple lenders. Most student loan lenders allow you to pre-qualify to see your estimated interest rates with a soft loan inquiry. which doesn’t affect your creditworthiness.

You can view your pre-qualified loan repayment offers from Credible’s partner lenders for free by filling out a single form in just a few minutes. This is how you can find the best interest rates for your financial situation risk-free.

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Do you have a question about finance but don’t know who to contact? Send an email to the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert section.

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