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Average interest rates on most refinanced student loans are little changed from two weeks ago, according to Credible. Rates on five-year graduate loans saw the biggest movement, increasing by 80 basis points.
College costs have gone up over the past year as the Federal Reserve has fought inflation by increasing the federal funds rate. Those higher rates make it more expensive for consumers to finance everything from college tuition to homes and cars.
Federal student loan rates for the 2023-24 school year have risen by the widest margin in about 20 years. While private student loan rates aren’t directly affected by federal rates, they’re likely to increase because they don’t have to stay as low to remain competitive with federal ones.
Insider’s Featured Student Loan Refinance Companies
APR
Variable: 5.09% – 8.99%, Fixed: 4.49% – 8.99%
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APR
Variable: 3.99% – 9.24% with AutoPay, Fixed: 4.39% – 9.24% with AutoPay
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APR
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5-year variable student loan refinancing rates
Five-year undergraduate variable rates haven’t moved from last week. Graduate rates have risen from last week and are up 80 basis points.
Rates on both types of loans are up about 3% from 12 months ago.
10-year fixed student loan refinancing rates
Rates on 10-year fixed loans haven’t changed too much from two weeks ago. Undergraduate rates are up by 25 basis points, while graduate rates have dropped by six basis points.
From six months ago, undergraduate rates are up 84 basis points and graduate rates have increased by 82 basis points.
Student loan interest rates by credit score
Borrowers with better credit scores frequently get better rates, although that’s not always true. The table below shows the 10-year fixed student loan rates by credit score:
Frequently asked questions
There’s no specific answer to this question, as your decision is contingent upon on your unique financial situation. You might want to look at alternatives such as a less expensive school, scholarships, or a side job to earn more money. Whatever your decision is, make sure you understand the terms of your new loan before making a choice.
Getting approved without a cosigner usually includes factors outside of your credit score. Lenders may take into account GPA, major, projected future earning potential, and more when making approval decisions.
No, they won’t qualify for any federal forgiveness programs, including the widescale forgiveness currently being challenged in court.
You might be able to save hundreds or even thousands on interest if you repay your student loans during the repayment pause, set to go through August 2023. This is because any payment you make on your student loans goes directly toward your balance. When you make a payment traditionally, a portion of it goes toward paying down interest.
