Key Facts

• Private student loan interest rates can range from about 2% to over 16%, depending on credit and risk factors.
• Fixed rates under 5% are considered excellent and usually reserved for borrowers with strong credit and stable income or a creditworthy co-signer.
• Rates between 5% and 7% remain very good for many borrowers with solid credit histories.
• Rates from 7% to 9% are still competitive, especially for younger borrowers with limited credit.
• Rates between 9% and 12% are common but increase the total repayment amount, so borrowers should think carefully before accepting them.
• Rates above 12% are high and should prompt borrowers to consider options like co-signers or improving credit before taking the loan.
• Variable-rate loans often start in the low-to-mid 3% range but can rise significantly over time.
• Comparing rates and loan terms carefully is important to manage the overall cost of borrowing for college.