You won’t get an exact answer to this question until you decide on a lender, who will issue a loan. The interest rate on private student loans might differ from a lender to a lender unlike the fixed interest rate of the federal loans.
The interest rate for the private loan is credit based. The better credit you (or your co-signer) might offer, the more chances to get private student loans with the lowest interest rate you have.
The CNBC portal published information about the average interest rate for private student loans. According to it, 7.81% is the variable interest rate for a private student loan, 9.66% is a fixed one.
Here is a comparison chart made by CNBC analyzing different cases:
Still, don’t forget that the better creditworthiness you show, the lower interest rate you can expect. Remember that with a credit score lower than 690, you will pretend to qualify for a higher interest! So, if you have enough time to fix your credit, you should do it.
Still, before applying for a private student loan and looking for the average interest rate on private student loans, it’s better to try all available options from the government.
For instance, you should submit FAFSA (create an FSA ID and gather all needed documents first) and check out if you qualify for any of the federal student loan programs.
If you are not, you can join that 1.4 million of students, who finance their study with the help of the private student loans. Still, don’t forget that finding a reliable lender is your priority!