Private Student Loan Rates: June 24, 2025

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Rates on 10-year fixed-rate private student loans decreased last week, with the average rate at 6.80% for those with a credit score of 720 or higher.
Compared to last year, current rates are significantly lower, offering borrowers better terms.
Financing $20,000 in student loans at the average rate would result in a monthly payment of around $230 and $7,619 in total interest over 10 years.
Average variable rates on five-year loans also dropped to 7.76% from 7.88%.
It's essential to consider federal student loans first due to lower interest rates and more favorable repayment options.
Private student loans can be a good alternative if federal loans are insufficient, but a qualified co-signer is often required for limited credit history.
When applying for a private student loan, consider the total cost, lender support, and only borrow what is essential.
Rates are influenced by credit score and other factors, with better rates available to those with good credit.
Experts recommend not borrowing more than your anticipated first-year earnings post-graduation.
Private student loans offer flexibility with disbursal and borrowing amounts, but federal loans are preferred for their protections and forgiveness programs.

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