Private student loan rates have seen an increase recently, with the average fixed interest rate for a 10-year loan rising to 7.95% as of September 2, 2024. This marks a 0.36% jump from the previous week and a slight increase from last year’s average of 7.85%. For borrowers financing $20,000, this translates to monthly payments of approximately $242 and a total interest of around $9,055 over the loan term. Variable-rate loans have also risen, with the average five-year rate now at 8.67%. Borrowers must consider their financial stability when choosing between fixed and variable rates, as fixed rates offer predictability while variable rates may start lower but can fluctuate. Eligibility for loans typically requires a good credit score, and many lenders prefer applicants with a co-signer. It’s crucial for borrowers to compare loan costs, interest rates, and lender support options to make informed decisions.
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