Rates on 10-year fixed-rate private student loans dropped last week. If you’re interested in picking up a private student loan, you can still get a relatively low rate.
According to Credible.com, from April 14 to April 19, the average fixed interest rate on a 10-year private student loan was 7.40%. It was 8.62% on a five-year variable-rate loan. That’s for borrowers with a credit score of 720 or higher who prequalified on Credible.com’s student loan marketplace.
These rates are accurate as of April 14, 2025.
Related: Best Private Student Loans
Fixed-Rate Loans
Last week, the average fixed rate on 10-year loans dropped by 0.50% to 7.40%. The week prior, the average stood at 7.90%.
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 9.40%, 2.00% higher than today’s rate.
A borrower who finances $20,000 in private student loans at today’s average fixed rate would pay around $236 per month and approximately $8,363 in total interest over 10 years, according to Forbes Advisor’s student loan calculator.
Variable-Rate Loans
Average variable rates on five-year loans fell last week to 8.62% on average from 10.84%.
In contrast to fixed rates, variable interest rates fluctuate 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.
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.
If you were to finance a $20,000 five-year loan at a variable interest rate of 8.62%, you’d pay approximately $411 on average per month. In total interest over the life of the loan, you’d pay around $4,689. Of course, since the interest rate is variable, it could fluctuate up or down from month to month.
Related: How To Get A Private Student Loan
Know the Benefits of Private Student Loans
- You can often borrow as much as you need.
Some private lenders let you borrow up to your school-certified cost of attendance minus any previously awarded financial aid. - You might not have to pay fees.
The best private lenders don’t charge origination or disbursement fees, so you won’t have extra charges on your loan in addition to interest. - Good credit means better interest rates.
While your credit score doesn’t 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. - It’s easy to apply online.
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. - International students may be eligible.
Some lenders provide loans for international students attending school in the U.S. If you’re an international student, you may have to apply with a U.S.-based co-signer to qualify. - Your lender may offer useful perks.
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.
What Is Required To Get a Student Loan?
To get a private student loan for college or graduate school, you’ll need to meet a lender’s underwriting requirements for credit and income, and other criteria. Here are the main requirements:
- Have a good credit score.
Lenders look at your credit, income and other financial characteristics to assess your risk as a borrower. They typically want to see good credit, though specific expectations vary by lender. - Apply with a co-signer.
You may need to apply with a creditworthy co-signer to qualify for a student loan, especially if you’re an undergraduate student without much of a credit history. - Attend an eligible school.
Lenders want to see that you’re enrolled or planning to enroll in a qualifying program at an eligible institution. - Be at least 18.
You’ll need to be the age of majority in your state, which is usually 18 or 19. - Meet any citizenship requirements.
You need to be a U.S. citizen or permanent resident. However, some lenders provide loans for international students, though they may require those borrowers to apply with a U.S. citizen or permanent resident as their co-signer.
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