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Forbes
a day ago
- Business
- Forbes
Private Student Loan Rates: July 29, 2025 - Loan Rates Edge Up
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Rates on 10-year fixed-rate private student loans moved up last week. If you're interested in picking up a private student loan, you can still get a relatively low rate. From July 21 to July 26, the average fixed interest rate on a 10-year private student loan was 6.75% for borrowers with a credit score of 720 or higher who prequalified on student loan marketplace. On a five-year variable-rate loan, the average interest rate was 9.21% among the same population, according to These rates are accurate as of the week of July 21, 2025. Related: Best Private Student Loans Last week, the average fixed rate on a 10-year loan jumped by 0.08 percentage point to 6.75%. The average stood at 6.67% the week prior. Borrowers currently in the market for a private student loan will receive a lower rate than they would have at this time last year. At this time last year, the average fixed rate on a 10-year loan was 7.62%, 0.87 percentage point higher than today's rate. A borrower who finances $20,000 in private student loans at today's average fixed rate would pay around $230 per month and approximately $7,558 in total interest over 10 years, according to Forbes Advisor's student loan calculator. Last week, rates on variable five-year student loans moved up, reaching 9.21% from 7.54% the week prior. In contrast to fixed rates, variable interest rates fluctuate over the course of a loan term. Variable rates may start lower than fixed rates, especially during periods when rates are low overall, but they can rise over time. Private lenders often offer borrowers the option to choose between fixed and variable interest rates. Fixed rates may be the safer bet for the average student, but if your income is stable and you plan to pay off your loan quickly, it could be beneficial to choose a variable loan. If you were to finance a $20,000 five-year loan at a variable interest rate of 9.21%, you'd pay approximately $417 on average per month. In total interest over the life of the loan, you'd pay around $5,033. Of course, since the interest rate is variable, it could fluctuate up or down from month to month. Private student loans may be a good option if you reach the annual borrowing limits for federal student loans or if you're otherwise ineligible for them. You should consider a federal student loan as your first option, as interest rates are generally lower and you'll enjoy more liberal repayment and forgiveness options than with a private loan. When shopping for a private student loan, you'll generally need to apply directly through a non-federal lender. This includes banks, credit unions, nonprofit organizations, state agencies, colleges and online entities. Keep in mind that undergraduates with limited credit history often need a co-signer who can meet the lender's borrowing requirements. Here's what to consider when applying for a private student loan: Make sure you qualify. Private student loans are credit-based, and lenders typically require a credit score in the high 600s. This is why having a co-signer can be particularly beneficial. Private student loans are credit-based, and lenders typically require a credit score in the high 600s. This is why having a co-signer can be particularly beneficial. Apply directly through lenders. You can apply directly on the lender's website, via mail or over the phone. You can apply directly on the lender's website, via mail or over the phone. Compare your options. Look at what each lender offers and compare the interest rate, term, future monthly payment, origination fee and late fee. Also, check to see if the lender offers a co-signer release so that the co-borrower can eventually come off of the loan. When looking for the best private student loan option, take a close look at the overall cost of the loan, including the interest rate and fees. It's also important to consider the type of help the lender offers if you can't afford your payments. Keep in mind that the best rates are only available to those with good or excellent credit. How much should you borrow? Experts generally recommend borrowing no more than you'll earn in your first year out of college. How much can you borrow? Some lenders cap the amount you can borrow each year, while others don't. When you're shopping around for a loan, talk to lenders about how the loan is disbursed and what costs it will cover. If you need to borrow for school, federal student loans are generally the best option. This is because federal loans offer various borrower protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, most federal loans don't require a credit check or co-signer. The rate you receive depends on whether you're getting a fixed or variable loan. Rates, in part, are based on your credit profile. Those with higher credit scores often get the lowest rates. But your rate is based on other factors as well. Income and even the degree you're working on and your career can play a part. It's generally a good idea to max out your eligibility for federal financial aid before borrowing private student loans, but private loans have some benefits. For one thing, they don't have the same annual borrowing limits as federal loans. Many lenders let you borrow up to your cost of attendance minus any other financial aid you've already received. Plus, you can usually apply throughout the year with a fast, easy online application. For instance, you can apply for a private loan if you need funds halfway through the semester. Some lenders can fund your loan in a week or two, though others take longer. Private lenders can also offer competitive interest rates, especially to borrowers with excellent credit. Some private loans don't have any fees, so you don't have to worry about origination fees, administrative fees or even late fees in some cases. You also may not have to make payments on your private student loan while you're in school or for six to nine months after you graduate, depending on the lender. Some lenders offer additional perks to borrowers, such as forbearance and deferment, the option to skip a payment or career counseling services. Some private lenders offer loans to international students. International students are not eligible for federal student loans from the U.S. Department of Education, so a private student loan can provide the funds they need for college or graduate school in the U.S.
Irish Times
a day ago
- Business
- Irish Times
How to build wealth in Ireland: Save and invest in your 20s and 30s
When Teresa Bruen and Brian Redmond were aged 24 and 25 respectively, they bought their first home – an old house in need of a lot of love outside Gorey, Co Wexford – for €195,000. At the time, they had a combined income of €55,000, with Redmond working as a teacher and Bruen an apprentice financial adviser. They lived with Redmond's mother at her home in Wicklow and paid rent, and on top of this, he commuted daily to his teaching job in Castleknock, Dublin. But with no family help towards the house purchase, how did they do it? 'We just saved anything we could from the start of 2019, and we didn't have help from anyone,' says Bruen. 'I know people hate when we tell them don't go out for a coffee or go away for a holiday if you want to save, but that's what we did. We had a hard 12 months or so of saving the guts of €2,000 a month, and our wages weren't great so with the exception of whatever we needed to eat, we saved everything. And that's how we got there. In June 2020 we bought our first home.' READ MORE Bruen, now aged 30, and a financial planning consultant, and Redmond, 31, have a two-year-old and live in a larger home in Gorey having sold their first house in May for €316,000, a profit of €121,000. They have since bought again in the same area for €500,000. 'At the time we had friends telling us to live our lives a bit more, but we had our goals and that was to get a house and then enjoy a holiday. Now these friends are at the stage we were at back in 2019 and saving to buy something that might not be achieved until they are 40.' [ Budget 2026: What will it mean for the average earner in Ireland? Opens in new window ] Are the couple, who have now shifted their financial energies towards pension pots, a good example of an age group primed for a lifetime of secure financial planning, or is there hope for people only beginning to address such matters in their 40s and even 50s? Is there a right age and time for financial planning? While research shows young people are much better at saving these days – the Growing Up In Ireland study of 25-year-olds, published in March, found two-thirds save regularly – this money is not ending up in investments or pensions. How to manage your pension in these volatile times Listen | 37:00 The Life Insurance Association (LIA), which specialises in education and development of financial advice and planning professionals, shared research that same month that found that 42 per cent of young adults – ages 18-34 – do not have a pension. This, according to some financial experts, is a wasted opportunity, particularly for thirtysomethings who by properly mapping out and planning their financial futures, could make life very comfortable in the decades that follow. 'The most valuable asset you have in your 30s isn't your job title, your property or your savings account, but time. When you invest early, time will do the heavy lifting,' says Robert Whelan of Rockwell Financial, a Dublin-based financial management firm. 'This is the essence of compounding: small amounts, invested consistently and allowed to grow, can become something meaningful.' To drive home his point, Whelan presents two examples – a person who starts saving in their 30s for 10 years, stops and never contributes again, compared with another who starts saving in their 40s for 20 years. Both save €3,000 a year and achieve a 7 per cent return on their investments, but there is one clear winner. 'By the age of 60, the early saver ends up with €151,000, while the 20-year saver from the age of 40, ends up with €122,000,' he says. 'Let that sink in: the early saver ends up with €29,000 more, even though they contributed €30,000 less overall. The difference was time, because those early contributions had two extra decades to grow.' [ How to get children saving early – and why prize bonds aren't the answer Opens in new window ] Time is something Whelan values given his own brush with missed savings, pension contributions and compounding. 'In 2008, when the financial crisis hit, I was 31, and like so many others, I took a significant salary cut just to stay employed,' he says. 'A few years later, at 35, I was made redundant, so I started a business at yet another pay cut. This meant, for nearly a decade, I didn't go back to my 2008 salary level because I was focused on survival. 'It's why I can relate to those in their 30s now who are worried about the effect of missing out on getting on the property ladder, as I know the real cost. It isn't just the money you didn't earn – it's the wealth you don't build. 'I meet a lot of clients between the ages of late 40s and early 50s, and the difference between those who managed to avoid the worst of the recession and their peers is significant. These were workers in tech or pharma, or sectors which weren't really affected by the downturn, and got wage rises when people were getting pay cuts, or bonuses when others were just happy to have a job. So if you have the opportunity to build on your wealth, you should do it.' But where you save, what access you need to funds and what returns you might get on those savings are just as important, says David Funcheon, a financial planner at Ask Acorn, a personal and business financial company in Galway. 'If somebody needs access to cash in the short term, which we define as three to five years, it should be in an on-demand deposit account, but if it's going to be longer, they should be saving into an account or a fund that's going to yield them a return equal to the risk you're willing to take to get that return,' he says. 'We have a serious amount of money being invested in traditional banks and current accounts and deposit accounts that are returning little to nothing. 'A lot of these accounts are returning 1-1.5 per cent, with inflation around 2 per cent, so the buying power is being significantly affected. If people can save in a facility – whether an equity-based fund or a managed fund through a life company set-up – then you can expect to get a return of 4.5-5 per cent over the medium to long term because the effect of inflation is negated by the rate of return. 'Saving in equity-based funds over traditional banks also has the benefit of gross return or 'gross roll-up', where the tax is applied on these funds every eight years, whereas traditional bank accounts are taxed on an annual basis. 'Someone in their mid-to-late 20s with the goal or expectation that they might be able to save €20,000 or €30,000 over a 10-year period could actually benefit from the compound gross roll-up year in, year out for eight years and then be taxed on that rather than on an annual basis.' You need to get your basics right – get a roof over your head, keep your debts low, and then move on to your investing But all is not lost for people in their 40s and 50s who want to enhance their pension funds now because some additional disposable income is finally available to them. 'I would be looking at how they are fulfilling their requirements in relation to the amount that they can save equal to the threshold of €115,000 based on their age,' says Funcheon. 'If someone in their 40s can save 20 or 25 per cent of their income – most people are probably saving on through pension return of about 6-8 per cent – there is huge scope to make up that difference through additional voluntary contributions [AVCs]. 'The benefit from that is the tax relief, because if they're earning over €44,000 a year, they're getting a 40 per cent return on it. So there's a huge advantage to doing it because it's then supplementing the retirement income.' Bruen's advice for people her own age and younger is to start saving immediately and be realistic about what you want in the short term before planning for the longer term. 'I think a lot of young people get caught up on TikTok and Instagram and come out with all these ideas around how to make money fast and invest in certain things like Bitcoin and stocks on Revolut, and these are not the places to be saving your money,' she says. 'If your goal is a house and you want to do that in the next five years, then you need to be looking at banks, at deposit accounts that offer cashbacks, then that's a good place to get started. You need to get your basics right – get a roof over your head, keep your debts low, and then move on to your investing.'
Yahoo
2 days ago
- Business
- Yahoo
The New Big Fear In Retirement Planning Is 100% Legit — How To Tackle It
American confidence in retirement planning is at an all-time low, dropping from 83% in 2020 to only 70% in 2025, according to the Allianz Center for the Future of Retirement's '2025 Annual Retirement Study.' The research found that instead of looking forward to their golden years, Americans are more fearful than ever. Be Aware: Explore More: While numerous factors contribute to this fear-based mindset, the most prominent is the ability to save. Only around 55% of Americans are currently saving enough to support their retirement years, with only 48% of millennials, 59% of Gen Xers and 74% of boomers putting enough aside to live comfortably after retirement. But what additional factors play a role in the growing fear surrounding retirement planning, and what steps can you take to tackle them? Having a plan in place can help restore your confidence and make planning for retirement more successful. Factors Impacting Retirement Planning The ability to save enough money for retirement is Americans' biggest fear, but other factors directly impact the ability to do so. Here are a few. Increasing Healthcare Costs As healthcare costs continue to increase, they account for a larger portion of many Americans' retirement savings. Even with insurance, healthcare expenses can make it difficult to save and maintain those savings long-term. For You: Inflation As the dollar loses its value, retirement savings effectively shrink. Inflation's devastating impact on purchasing power means retirees must have a larger income to support their lifestyle in retirement. Stock Market Fluctuations Volatility in the stock market can wreak havoc on retirement portfolios, causing anxiety for the millions of Americans who rely on their investment income. Uncertainty surrounding the stability of these investments can make retirement planning even more challenging. Recession While the American economy isn't currently in a recession, a whopping 62% of Americans cite it as a large concern when planning for retirement. A global or national financial crisis could devastate many retirement portfolios, wiping out a lifetime of savings. How To Overcome Retirement Planning Fears Tackling the fear of having enough saved for retirement can seem overwhelming, but with common-sense solutions, you can help set yourself up for long-term financial success. Develop a Comprehensive Retirement Strategy Creating a comprehensive retirement strategy that outlines your financial goals, budget and ways to increase your savings can keep you on track and ready when the unexpected occurs. Consider Guaranteed Income Options Having a steady, guaranteed income can offer unmatched peace of mind during retirement. Options like annuities are great, especially when started early. Research Healthcare Options Researching your healthcare options, such as Medicaid plans, Health Savings Accounts and supplemental insurance, can help you offset large healthcare costs. Plan for Market Volatility Diversifying your assets can protect your savings during market fluctuations and help you maintain a steady income throughout your retirement. Creating a plan to grow and protect your savings will give you confidence as you plan for retirement. Whether you work with a financial advisor or tackle it yourself, having a sound financial strategy will help mitigate long-term risk for a financially secure retirement. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Warren Buffett: 10 Things Poor People Waste Money On 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on The New Big Fear In Retirement Planning Is 100% Legit — How To Tackle It
Yahoo
2 days ago
- Business
- Yahoo
The New Big Fear In Retirement Planning Is 100% Legit — How To Tackle It
American confidence in retirement planning is at an all-time low, dropping from 83% in 2020 to only 70% in 2025, according to the Allianz Center for the Future of Retirement's '2025 Annual Retirement Study.' The research found that instead of looking forward to their golden years, Americans are more fearful than ever. Be Aware: Explore More: While numerous factors contribute to this fear-based mindset, the most prominent is the ability to save. Only around 55% of Americans are currently saving enough to support their retirement years, with only 48% of millennials, 59% of Gen Xers and 74% of boomers putting enough aside to live comfortably after retirement. But what additional factors play a role in the growing fear surrounding retirement planning, and what steps can you take to tackle them? Having a plan in place can help restore your confidence and make planning for retirement more successful. Factors Impacting Retirement Planning The ability to save enough money for retirement is Americans' biggest fear, but other factors directly impact the ability to do so. Here are a few. Increasing Healthcare Costs As healthcare costs continue to increase, they account for a larger portion of many Americans' retirement savings. Even with insurance, healthcare expenses can make it difficult to save and maintain those savings long-term. For You: Inflation As the dollar loses its value, retirement savings effectively shrink. Inflation's devastating impact on purchasing power means retirees must have a larger income to support their lifestyle in retirement. Stock Market Fluctuations Volatility in the stock market can wreak havoc on retirement portfolios, causing anxiety for the millions of Americans who rely on their investment income. Uncertainty surrounding the stability of these investments can make retirement planning even more challenging. Recession While the American economy isn't currently in a recession, a whopping 62% of Americans cite it as a large concern when planning for retirement. A global or national financial crisis could devastate many retirement portfolios, wiping out a lifetime of savings. How To Overcome Retirement Planning Fears Tackling the fear of having enough saved for retirement can seem overwhelming, but with common-sense solutions, you can help set yourself up for long-term financial success. Develop a Comprehensive Retirement Strategy Creating a comprehensive retirement strategy that outlines your financial goals, budget and ways to increase your savings can keep you on track and ready when the unexpected occurs. Consider Guaranteed Income Options Having a steady, guaranteed income can offer unmatched peace of mind during retirement. Options like annuities are great, especially when started early. Research Healthcare Options Researching your healthcare options, such as Medicaid plans, Health Savings Accounts and supplemental insurance, can help you offset large healthcare costs. Plan for Market Volatility Diversifying your assets can protect your savings during market fluctuations and help you maintain a steady income throughout your retirement. Creating a plan to grow and protect your savings will give you confidence as you plan for retirement. Whether you work with a financial advisor or tackle it yourself, having a sound financial strategy will help mitigate long-term risk for a financially secure retirement. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 5 Cities You Need To Consider If You're Retiring in 2025 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on The New Big Fear In Retirement Planning Is 100% Legit — How To Tackle It
Yahoo
2 days ago
- Business
- Yahoo
Why Millennials Making $300K Don't Feel Like They're Wealthy, According To a Personal Finance Expert
Eryn Schultz is a certified financial planner and the founder of Her Personal Finance, a website designed to help high-earning women take charge of their financial futures. Shultz recently made a post Instagram addressing high-earning millennials, in particular: 'According to 2023 Census data, a $300K-per-year household puts you in the top 5% of millennials,' wrote Shultz. However, she went on to explain that the top 5% of millennials reported not actually feeling wealthy. So why is this? Schultz elaborated further. Check Out: Read Next: Cost of Housing According to Schultz, homes in major metropolitan areas typically cost upward of $1 million. The cost of housing for millennials has rapidly outpaced inflation and wage growth. Cost of Child Care According to Schultz, childcare costs roughly $2,000 per month…per child. If millennials have two children, that's a whopping $48,000 per year out the door before other kid essentials like food, clothes, diapers, toys and strollers are even taken into account. (Costs are often this expensive because, prior to grade school, there's no government-sponsored child care.) Discover More: Interest Rates Interest rates on home and auto loans are currently 6.5% and up, resulting in exceptionally high monthly mortgage and car payments. Credit card interest is even higher, meaning that carrying credit card balances can trap people in a dangerous cycle of debt. Comparison Trap It doesn't help that the top 5% of millennials typically hang out with the top 1% to 3%, which skews their perception of wealth and makes them feel positively middle class — even though they aren't. What Tips Does Shultz Recommend for Mapping Out Your Money? For the top 5% of millennials, it may be difficult to differentiate between real factors pinching their wallets and the perception that they aren't doing as well as their wealthier counterparts. This is why Schultz recommends taking pen to paper and mapping out your money to see how you're doing. Track three basic numbers: what percentage of your income goes to housing, what percentage is/will be going to child care and what, if anything, is being saved for the future. 'Sometimes seeing these money maps helps people realize how great they're doing,' wrote Schultz. 'Other times, we identify places where they want to shift.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 4 Affordable Car Brands You Won't Regret Buying in 2025 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on Why Millennials Making $300K Don't Feel Like They're Wealthy, According To a Personal Finance Expert Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
