How to Get a Low-Interest Student Loan

Get a low-interest student loan by shopping around, applying with a co-signer and finding discounts.
Teddy Nykiel
By Teddy Nykiel 
Updated
Edited by Des Toups

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

MORE LIKE THISLoansStudent loans

All federal loans issued each year have the same, fixed interest rate — regardless of the borrower’s credit. Private student loans, on the other hand, have wide-ranging interest rates.

Current student loan interest rates

Fixed

Variable

Private student loans

2.84% to 14.99%
1.24% to 15.49%

Student loan refinancing

2.99% to 9.44%
2.48% to 11.97%

These ranges are wide because they account for differences in borrowers’ credit profiles and loan terms, among other factors. Whether you’re taking out a private loan for the first time or refinancing your existing college debt with a private lender, do all of the following to get the lowest rate on student loans.

Student loans from our partners

Sallie Mae Undergraduate Student Loan logo
Check Rate

on Sallie Mae

Sallie Mae

4.5

NerdWallet rating 
Sallie Mae Undergraduate Student Loan logo

4.5

NerdWallet rating 
Fixed APR 

4.5% - 15.49%

Min. credit score 

Mid-600's

Check Rate

on Sallie Mae

College Ave Private Student Loan logo
Check Rate

on College Ave

College Ave

5.0

NerdWallet rating 
College Ave Private Student Loan logo

5.0

NerdWallet rating 
Fixed APR 

4.07% - 15.48%

Min. credit score 

Mid-600s

Check Rate

on College Ave

Ascent Private Student Loan logo
Check Rate

on Ascent

Ascent

5.0

NerdWallet rating 
Ascent Private Student Loan logo

5.0

NerdWallet rating 
Fixed APR 

4.09% - 15.71%

Min. credit score 

Low-Mid 600s

Check Rate

on Ascent

Shop around

Different lenders offer different interest rate ranges, so compare private student loans to ensure you get the best rate you qualify for. Look at the annual percentage rates, the most accurate way to compare interest rates. The APR reflects the loan’s true cost including accrued interest, capitalized interest and any origination fees that apply.

Have excellent credit

Private student loans are generally credit-based, which means the interest rate you get depends on your credit history. Generally, the higher your credit score, the lower the interest rate you’ll qualify for. In addition to credit history, lenders typically evaluate income and other debt owed. The higher your income compared to your total outstanding debts, the more likely you are to qualify for a lower interest rate.

Don’t have excellent credit yet? If your credit improves in the future, you can lower your interest rate by refinancing your student loans.

Apply with a co-signer

If you don’t have excellent credit or a high enough income, you’ll likely qualify for a lower interest rate by applying with a co-signer who has good credit and a solid income.

Your co-signer will be responsible for making payments if you don’t. However, they don’t have to be on the hook forever — many lenders allow a co-signer release after the primary borrower makes on-time payments for a certain amount of time.

Sign up for autopay

Most federal and private lenders offer a 0.25 point interest rate reduction for borrowers who sign up to have their monthly payments automatically deducted from their bank account. Often, the rate ranges that lenders advertise include the autopay discount.

In addition to saving you money, signing up for autopay can also bring peace of mind: You won’t have to worry about accidentally missing a payment.

Get any discounts that apply

Some lenders offer additional discounts on top of autopay discounts. These may include:

Loyalty discount. If you have an existing bank account with a lender.

Discount for opting for interest-only payments. If you choose not to defer payments until after graduation by making interest-only payments during school.

Discount for linking autopay to an existing account. If you connect autopay to a bank account you have with the lender.

Promotional discounts. Lenders will offer additional discounts for short, promotional periods.

Decide between fixed and variable

Variable student loan interest rates typically start out lower than fixed rates. However, variable rates are subject to rise monthly or quarterly, depending on the lender. Fixed rates stay the same throughout the life of the loan. If you’re planning to pay your loan off very quickly, choosing a variable rate might make sense.

Pick the shortest term you can

Lenders typically offer a few options for the loan’s term, or the length of the repayment period. Generally, you’ll get the lowest interest rate by choosing the shortest loan term. You’ll also save on interest because you’ll be paying interest for a shorter period of time. On the flip side, a shorter loan term means your monthly payments will be higher, so choose the shortest term you can comfortably manage.

Get pre-qualified in just 3 minutes with Credible
Check multiple student loan lenders to get accurate, pre-qualified rates with no impact to your credit score.

Powered by

Spot your saving opportunities
See your spending breakdown to show your top spending trends and where you can cut back.