The interest rate on your private student loan can be affected by many factors, including:Lenders typically set their variable rates according to the Secured Overnight Financing Rate , which is a reference rate used to measure the cost of borrowing. If the SOFR increases, your interest rate likely will, too. The higher your score, the lower your interest could be. If your score is less than excellent , you likely won’t qualify for the lowest advertised rates.
. However, your cosigner is equally responsible for your debt. If you fail to make payments, they’ll have to pay your loans for you.your bills on time, paying down existing debt, and avoiding new credit accounts can all help improve your credit score. Do your homework and compare lenders to find the offer with the lowest rate. Keep in mind that even if a lender offers a lower monthly payment, a higher interest rate could still cost you more in the long run.