<ul><li>Last week, the average fixed interest rate on a 10-year private student loan dropped to 6.81% for borrowers with a credit score of 720 or higher.</li><li>The average rate on a variable five-year student loan also decreased to 8.63% from 8.93%.</li><li>Variable interest rates fluctuate, while fixed rates remain constant. Choosing between them requires considering factors like stability of income and repayment timeline.</li><li>Federal student loans are recommended as the first borrowing option due to lower interest rates and more repayment options, but private student loans can be beneficial for those who reach federal loan limits.</li></ul>

Private Student Loan Rates: June 2, 2025 – Loan Rates Decrease

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