Credible Student Loans refers to student loan and refinancing options accessible through Credible, a platform that aggregates private student loan offers and refinancing products from multiple lenders, enabling borrowers to compare real prequalified rates and select the most suitable financing for their education or repayment needs.
Who This Loan Is For
Typical borrowers include undergraduates, graduate students, professional program attendees, and parents exploring private student loans or refinancing existing federal or private loans.
Eligibility for loans identified via Credible depends on U.S. citizenship or permanent residency, as well as credit, income, and school enrollment status for students and, where required, their cosigners.
Key Facts (At-a-Glance)
Item
Details
Program Type
Private student loans and student loan refinancing (multiple non-government lenders; not federal loans).
Interest
Both fixed and variable rates are available (exact ranges “sample/illustrative”; always compare current lender offers).
Accrual
Interest accrues from disbursement for private loans and heavily during refinancing; capitalization occurs at repayment or forbearance end.
Repayment Plans
Standardized terms vary by lender (often 5, 7, 10, 15, or 20 years); limited IDR access with private loans versus official federal IDR programs.
Grace Period
Typically 6 months post-graduation for private student loans; some lenders offer in-school deferment or alternative grace arrangements.
Deferment/Forbearance
Limited for private loans; specifics vary by lender—always verify directly.
Forgiveness/Discharge
Private lenders generally do not offer broad loan forgiveness; some hardship discharges possible for death or disability (terms vary).
Annual & Aggregate Limits
Subject to school cost of attendance and credit approval; amounts are “sample/illustrative” and should be verified case by case.
Fees
Private loans may have origination or late fees; many competitive products on Credible advertise $0 origination fees, but always check official disclosures.
Cosigner Rules (Private)
A cosigner is often required for students with limited credit or income; cosigner release options may exist after a set number of on-time payments (criteria depend on lender).
Pros
Access to multiple lender offers and prequalified real rates via a single application process.
Potential to secure lower rates than existing private or federal student loans when refinancing, if borrower profile qualifies.
No impact on credit score for initial rate shopping on Credible.
Some lenders offer zero origination fees and responsive customer service; certain loan products may include deferment options or cosigner release.
Cons
Private loans and refinanced loans through Credible do not carry federal student loan protections such as income-driven repayment (IDR) or broad loan forgiveness pathways.
Lender underwriting can be strict for borrowers with limited credit, necessitating a cosigner.
Interest accrual starts immediately; interest capitalization can increase total repayment cost if not managed actively.
Limited options for pausing payments—deferment and forbearance policies are lender-specific and may be less flexible than federal programs.
Costs, Interest & Repayment Mechanics
Interest rates may be fixed (unchanging) or variable (can fluctuate), and the APR reflects the total yearly cost including interest and fees. For private loans, interest starts accruing at disbursement.
When refinancing, existing federal and private loans may be combined into a single private loan, which permanently forfeits federal borrower protections.
Private lenders do not typically offer federal IDR (income-driven repayment); monthly payments are usually fixed based on the term selected. Some lenders may have temporary hardship forbearance but usually with stricter limits.
Representative example (sample/illustrative): If a borrower refinances $30,000 in student loans at a 5.00% fixed APR for 10 years, the monthly payment would be about $318. The total paid over 10 years would be approximately $38,160, assuming on-time payments and no extra fees. Actual rates and terms depend on lender and borrower profile; always confirm with current official disclosures.
Example
Principal
Rate/APR
Plan
Monthly Payment
Total Paid
Sample Scenario
$30,000
5.00% (fixed, illustrative)
10 years (standard fixed)
$318
$38,160
Application & Disbursement Steps
Start by using Credible’s online platform to compare prequalified rates from multiple private student loan or refinancing lenders. This soft credit inquiry will not affect your credit score.
Complete each lender’s formal application as instructed. For new student loans, you’ll need proof of enrollment, identification, and potentially a cosigner’s information; for refinancing, documentation of existing loans and income is required.
Once approved and after acceptance of final loan terms, funds are either disbursed to your school (for in-school borrowing) or used to pay off current loan servicers directly (for refinancing).
Repayment, Deferment & Forbearance
Full repayment typically begins after any grace/deferment period ends. Most private loans offer a six-month grace period after graduation, though verification for individual lenders is required.
Deferment and forbearance provisions for private loans are more limited than federal options, usually only available during short-term hardship and for specified durations (“sample/illustrative”: 3–12 months).
Interest continues to accrue during all deferment or forbearance periods; unpaid interest is typically capitalized, increasing the total owed upon entering repayment.
Forgiveness & Discharge Pathways
Private student loans accessed or refinanced through Credible do not qualify for federal Public Service Loan Forgiveness, teacher loan forgiveness, or income-driven repayment forgiveness programs.
Some lenders may provide discharge in cases of death or total permanent disability, or if the primary borrower’s bankruptcy is demonstrably linked to the student loan (rare and lender-specific – read all disclosures and contact lenders directly for details).
Risks & Responsible Borrowing
Missing payments on private student loans can result in default, damage to your credit score, collections, and loss of future borrowing eligibility.
Refinancing federal loans with a private lender is irreversible—any federal program benefits, including IDR, forbearance under federal rules, and forgiveness options, are lost permanently.
Borrow only what is necessary and fully understand all terms before accepting an offer; always compare multiple official sources.
Alternatives & Comparisons
Side-by-Side Comparison
Feature
Federal Loans
Private Loans
Underwriting
Eligibility-based (citizenship, FAFSA, school)
Credit/income based; cosigner may be required
Rate Type
Fixed (set annually by Congress for new loans)
Fixed/Variable (market-based)
Protections
IDR, deferment, forbearance, official discharge/forgiveness
Lender-specific; generally more limited
Forgiveness Potential
Yes (federal programs—see official StudentAid.gov pages)
Rare/hardship only (usually death/disability)
Frequently Asked Questions
Can I use Credible to refinance federal student loans?
Yes, but understand that refinancing federal student loans with a private lender means forfeiting federal benefits such as IDR, forbearance, and any forgiveness options. Review the Federal Student Aid homepage for more information before refinancing.
Will checking rates on Credible affect my credit?
No, using Credible to compare prequalified rates is a soft inquiry and does not impact your credit score. A hard inquiry may be performed if you complete a formal loan application with a lender.
What documents are required to apply for a private loan or refinancing via Credible?
Individual lender requirements vary but often include identification, proof of income, proof of enrollment (for student loans), current loan details (for refinancing), and cosigner information if applicable.
Does Credible offer student loan forgiveness?
No, Credible is a comparison and loan platform, not a lender. Forgiveness for private loans is rare and limited to lender-specific hardship policies; most private loans are not eligible for federal forgiveness programs.
What is a cosigner and do I need one?
A cosigner is someone who shares responsibility for the loan. Students with limited income or credit history often need a qualified cosigner to be approved for the most competitive rates.
Are there any fees associated with using Credible?
Credible itself does not charge users to compare rates; most lenders on the platform advertise zero origination fees, but always check each lender’s official fee disclosures to avoid surprises.
Where should I verify program details, policies, or deadlines?
Always confirm current loan terms, rates, eligibility standards, and forgiveness rules directly with official lenders, and consult Federal Student Aid resources for federal loan comparisons. Rules, rates, and assistance programs may change annually.
Conclusion & Next Steps
Credible Student Loans and refinancing options allow borrowers to compare private lending offers efficiently, helping find potential cost savings or more suitable loan structures depending on credit and income factors.
Carefully review all loan terms, consider the loss of federal benefits when refinancing, and prioritize borrowing only what is necessary.
For up-to-date federal loan details, eligibility verification, and guidance on repayment, visit the Federal Student Aid homepage and consult individual lender official websites for private loan terms.
Reassess your financial goals, discuss with qualified financial aid professionals, and ensure you work through official channels to avoid errors or misinformation.
