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Fixed or Variable Rate: Which is Right For Me?

There are advantages to both loan options. Which option works best for you will depend on your situation.

What is more important to you: a stable monthly payment into the future or a lower interest rate right now? Do you feel that interest rates will rise or remain low in the future? Your answers to such questions will lead to the loan option that's right for you.

All PNC Solution Loans™ have a fixed and variable rate option, and you don't have to decide which you'd prefer before you apply.

If you apply for your loan and are approved, you will be presented with your rates for both the fixed and variable rate versions of the loan. At that point you'll be able to choose which loan rate option - fixed or variable - you'd like to accept.

  Variable Rate Fixed Rate
Rate Structure Based on an index that changes quarterly plus a fixed margin that is determined by the creditworthiness of the borrower and any co-signer at the time of application. PNC private student loans are based on the London Interbank Offer Rate (LIBOR) index. Based on the creditworthiness of the borrower and any co-signer at the time of application
Comparing Interest Rates When Your Loan is Approved Rate may currently be lower than the rate offered on a fixed rate loan, but may change over the life of the loan Rate may be higher than the rate currently available on a variable rate loan
Rate Stable or Changing? Rate will change quarterly over the life of the loan, increasing or decreasing as LIBOR increases or decreases Rate will not change over the life of the loan.
Monthly Payment Monthly payment amount will change as LIBOR fluctuates. For example, if LIBOR increases, your payment will increase. Payment will remain the same over the life of the loan

» View a history of the LIBOR rate over the last 20 years

The variable rate PNC Solution Loan is based on the average of the LIBOR rates from the previous three months.

There are many reasons to choose one loan rate option over the other. For instance, if you would prefer the stability of paying the same amount each month, a fixed rate loan might be better for you. Or if you believe that interest rates and indices such as LIBOR will remain low in the future, a variable rate loan might be better for you.

PNC Solution Loans are subject to credit approval.

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Whether you're planning to borrow or preparing for repayment, we offer tools to help you create strategies that work best for you.

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You are encouraged to explore all scholarship, grant and federal borrowing options before applying for a private loan.

PNC does not provide accounting, tax or legal advice.