About 13% of all money borrowed for higher education comes from private student loans and other nonfederal lenders, according to the College Board. Unlike a federal student loan, a private loan may allow you to choose a variable interest rate, which typically has a lower initial rate than a fixed-rate loan. However, variable-rate loans have downsides, too.
This guide covers the best variable-rate student loans, how to compare your options, and when a variable rate may be right for you. Abe stands out as a top private student loan lender for variable-rate loans based on its competitive variable rates, high annual loan limits, and unique on-time payment discount, earning it 4.2 out of 5 stars.
Current private student loan rates
Best variable-rate student loan lenders of 2025
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Abe: Best for Payment Relief Options
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
660
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
5, 7, 10, 15, 20
Expert Insights
Few private lenders match the borrower protections Abe offers. You'll find options like in-school default protection, extended grace periods, and multiple types of forbearance — including for job loss and illness. These features make Abe an especially good fit for students who want a safety net during unpredictable times.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Ascent: Best for No-Cosigner Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 14.93%
Variable APR
4.34 - 15.00%
Loan Amount
$2,001 to $400,000
Term
5, 7, 10, 12, 15, 20
Expert Insights
Ascent stands out for offering private student loans to students without a cosigner and who have limited credit. Its outcomes-based loan uses factors such as academic performance and graduation timeline instead of credit to determine eligibility. Students can also qualify for a cash-back graduation reward and choose from a wide range of repayment plans.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Citizens: Best for Multiyear Approval
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
640
Fixed APR
3.24 - 14.99%
Variable APR
4.99 - 15.47%
Loan Amount
$1,000 to $400,000 (depending on degree)
Term
5, 10, 15
Expert Insights
Citizens could be a great fit for borrowers who already bank with the lender and want to save more on their student loans. Customers can lower their interest rate by 0.25 percentage points with a loyalty discount, and by another 0.25 percentage points for enrolling in autopay. Citizens also offers multiyear approval, making it easier to get additional loans without repeated hard credit checks.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
College Ave: Best for Extended Grace Periods
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.99%
Variable APR
4.24 - 17.99%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Expert Insights
College Ave offers a wide range of borrower-controlled features that makes it especially compelling for those who want predictability and planning power with their student loans. From 5 to 20-year terms and multiple in-school payment options to profession-specific grace periods, College Ave offers more structure and flexibility than many of its competitors.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Custom Choice: Best for Discounts and Rewards
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
3.24 - 15.71%
Variable APR
4.19 - 16.39%
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
7, 10, 15
Expert Insights
Custom Choice offers a compelling combination of rate discounts, graduation rewards, and zero fees. You can reduce your interest rate by 0.25 percentage points with autopay and earn a 2% principal reduction after graduating. With no fees, cosigner release after 36 payments, and hardship forbearance, it's a good option for students seeking both savings and support.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
ELFI: Best for flexible repayment
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
680
Fixed APR
2.99 - 14.22%
Variable APR
5.00 - 13.97%
Loan Amount
$1,000 up to cost of attendance
Term
5, 7, 10, 15
Expert Insights
ELFI stands out for offering a broad range of repayment terms — 5, 7, 10, or 15 years — so you can tailor your loan to fit your budget and timeline. Whether you want to pay off your loan quickly or stretch payments over time, ELFI gives you the tools to choose. This flexibility makes it a strong option if you're seeking maximum control over your repayment plan.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
INvested: Best for Indiana Students
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
670
Fixed APR
4.59 - 8.59%
Variable APR
6.74 - 10.79%
Loan Amount
$1,001 up to 100% of school certified cost of attendance
Term
5, 10, 15
Expert Insights
INvestEd offers unique value for Indiana students, with eligibility limited to state residents or those attending school in the state. This includes competitive interest rates, cosigner release after just 12 on-time payments, and generous forbearance and deferment options. As a nonprofit, INvestEd combines affordability with a strong commitment to local borrowers.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Nelnet Bank: Best for Competitive Rates
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Mid to high 600’s FICO
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $500,000
Term
5, 10, 15
Expert Insights
Nelnet Bank stands out among private student loan lenders for offering low starting rates and high loan limits across undergraduate, graduate, and health professional programs. You can qualify for a Nelnet Bank student loan with mid-600s credit or apply with a cosigner to improve your chances of approval and secure a better rate.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
Sallie Mae: Best for Specialized Loans
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
2.89 - 17.49%
Variable APR
4.37 - 16.99%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Expert Insights
Sallie Mae stands out from the competition with one of the broadest selections of specialized private student loans on the market. Loans cover everything from undergraduate degrees to medical residencies, bar study, flight training, and trade schools. This makes Sallie Mae a good option for students pursuing specialized or less traditional educational paths.
Advertiser Disclosure
We receive compensation from the companies below if you purchase a product. Amount of compensation does not impact the ranking or placement of a particular product. Not all available financial products and offers from all financial institutions have been reviewed by this website. This content is not provided by Credible or any of the Providers on the Credible website. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by Credible.
SoFi: Best for Member Perks
To determine the best student loan companies, Credible evaluated lenders based on several different categories, including: rates and fees, loan terms, eligibility, repayment options, and customer support. We assigned a score out of five stars to each lender based on our findings.
Read our full methodology.
Min. Credit Score
Does not disclose
Fixed APR
-
Variable APR
-
Loan Amount
$1,000 to $100,000
Term
5, 7, 10, 15
Expert Insights
SoFi offers borrower-friendly benefits rarely seen among student loan lenders. Perks include cash back for strong grades, a loyalty discount on future loans, and cosigner release after just 12 months. With flexible terms and competitive rates, SoFi is a standout option for students seeking long-term value.
Why you can trust our Credible experts
The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.
Methodology
To determine the best student loan lenders for variable-rate student loans, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.
- Repayment options: 30%
- Eligibility: 25%
- Interest rates: 20%
- Loan terms: 15%
- Customer support: 10%
While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.
Learn more about our methodology.
What is a variable-rate student loan?
A variable-rate student loan has an interest rate that can change over the life of the loan. This differs from a fixed-rate student loan, where the interest rate always remains the same. This also means that fixed-rate loans have the same monthly payment for the entire repayment period.
The interest rate on a variable student loan is tied to an index or benchmark interest rate, such as the Secured Overnight Financing Rate (SOFR), instead of being fixed. Typically, the introductory interest rate on a variable loan is lower than a fixed-rate loan, but it's not guaranteed to stay at that level. Anytime the index goes up or down, the interest rate will change to reflect the movement in the index.
Additionally, when the interest rate fluctuates, it also affects your monthly payment amount. You might see a monthly change to your student loan payment, which can make budgeting a little more difficult with a variable-rate student loan.
These factors often make variable-rate loans less desirable in the eyes of borrowers.
“I rarely run into people looking for variable-rate student loans,” says Jack Wang, a college financial aid adviser at Innovative Advisory Group. “Almost everyone I've dealt with is looking for fixed-rate loans.”
Check Out: The Pros and Cons of Student Loans: Are They Right for You?
Who should consider a variable-rate student loan?
Even though variable-rate student loans tend to be less popular than fixed-rate loans, they can be a good choice for some borrowers, especially if the initial interest rate is very low or guaranteed for a certain amount of time.
In particular, you might want to consider a variable-rate student loan if you:
- Plan to quickly repay the loan: If you intend to pay off the loan before the interest rate changes, a variable-rate student loan with a low initial rate could be one of your cheapest borrowing options.
- Plan to refinance soon: If you expect to refinance a variable-rate loan before the end of the initial rate period, this could be a savvy way to save money.
- Expect interest rates to fall: You might opt for a variable-rate loan if “you think we're in an economic environment where interest rates are expected to fall in the future,” Wang says.
“I recommend being cautious with variable-rate loans, even if they seem like a smart move right now. If interest rates go up, your monthly payment could rise too, and so could the total cost of your loan. Make sure you're financially prepared for that risk before you commit.”
— Renee Fleck, Student Loans Editor, Credible
How to compare variable-rate student loans
If you're interested in a variable-rate student loan, it's important to compare several loans to make sure you're getting the best one for your financial needs. Here are the specific factors you'll want to consider:
- Introductory interest rate: This is usually set at a lower “teaser” rate so the loan looks more affordable compared with a fixed-rate loan. Make sure you know how long the introductory rate will last and how the rate will change once the introductory period ends.
- Rate caps: These caps are the maximum level of interest you might be charged, as well as the maximum number of times the rates can change. “For variable-rate loans, the most important factor is to understand the limits and frequency of potential changes,” says Wang. “Most loans will have a periodic (e.g., annual) and/or a lifetime cap on how much rates can change.”
- Loan terms and repayment flexibility: How long is the repayment term and do you have multiple options to choose from?
- Fees: Make sure you understand any fees that might apply to your loan, including origination fees, prepayment penalties, or late-payment fees.
- Forbearance options: If you need a payment pause for any reason, does your private lender offer any kind of forbearance?
- Cosigner release: If you apply for your loan with a cosigner, your lender may allow you to release the cosigner after a predetermined number of on-time payments, although not all lenders offer cosigner release.
Read More: How To Take Out a Student Loan
Variable vs. fixed student loans: Which is better?
The right kind of student loan depends on the borrower, their financial situation, and current economic conditions.
A variable-rate student loan might offer more advantages to you if you plan to quickly repay or refinance the loan, or it might be the better option when interest rates are likely to fall in the future.
Fixed-rate loans may be the safer option for borrowers who intend to repay their loans over a longer period of time or when the economic outlook suggests higher interest rates in the future.
See Also: Fixed- vs. Variable-Rate Student Loans: How To Choose the Best Option
When deciding between a fixed- or variable-rate loan, Wang suggests that borrowers focus on their monthly cash flow.
“People get stuck on the introductory rate for variable loans,” he says. “They understand that the rate can change, but they don't consider the impact the higher payment will have on their overall budget.”
FAQ
What is a variable-rate student loan?
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Are variable-rate loans cheaper than fixed-rate loans?
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