Private Student Loan Prime Rate
The Prime Interest Rate is an index used in the United States to set rates for a variety of financial products such as credit cards, student loans, mortgages and more. Although some banks maintain their own version of the prime rate, the Wall Street Journal Prime Rate is considered the industry standard.
What is the WSJ Prime Rate?
According to the Wall Street Journal: (source)
The initials stand for the Wall Street Journal, which surveys large banks and publishes the consensus prime rate. The Journal surveys the 30 largest banks, and when three-quarters of them (23) change, the Journal changes its rate, effective on the day the Journal publishes the new rate. It's the most widely quoted measure of the prime rate, which is the rate at which banks will lend money to their most-favored customers. The prime rate will move up or down in lock step with changes by the Federal Reserve Board.
To summarize, it is based on the fed funds rate and the average prime rates of the top banks in America. Generally speaking, the prime can change at any time, but is mostly likely to rise or fall as a result of Federal Reserve monetary policy meetings. These meetings occur about every 6 weeks, or 8 times a year.
Compare Private Student Loan Interest Rates »
What is the current prime interest rate?
Use the widget below to pull up the most up-to-date figures via WolframAlpha.
What can I do to secure a low interest rate?
The trick is to either have a strong credit score and long history, or find a creditworthy co-signer. A co-signer could be a parent, family member or even an ordinary friend -- they just need to have clean and established credit.
Apply For a Private Student Loan : It is Quick and Easy
- Private student loans can be used to pay for tuition, supplies, housing, and more
- E-Sign your application and be finished in minutes
