Typically, the interest rate provided on a student loan is tied to the borrower's credit score. A higher credit score will result in a lower interest rate. It is best to compare interest rates when researching private loans. Some lenders offer fixed rates, which result in a set monthly payment, while others offer variable rates, which result in a monthly payment that can change each month. The interest on a private loan typically starts to accrue after the first disbursement of the loan.