This week’s student loan refinance rate: September 13, 2022


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Average interest rates on refinanced student loans are mostly up from two weeks ago, according to Credible. The exception is the variable five-year graduate loan rates, which fell about 3%.

Rates have been rising since last year, and there is a real possibility that they will continue to rise in the future. For the 2022-23 school year, federal student loan rates will increase by the highest amount since 2005-06. These new rates won’t directly impact private student loan rates, but private rates can go up because they don’t have to stay so low to be on par with federal loan rates.

Student loan refinance companies featured by Insider

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APR

Variable: 2.49% – 8.24%, Fixed: 4.24% – 8.49%

Editor’s note

4.5/5
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APR

Variable: 2.49% – 11.97%, Fixed: 2.59% – 8.74%

Editor’s note

3.5/5
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APR

Variable (with autopay discount): 2.49% – 7.99% APR, Fixed (with autopay discount): 3.74% – 8.49% APR

Editor’s note

3.5/5
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Variable 5-Year Student Loan Refinance Rates

Undergraduate rates were up significantly from last week, rising about 1.5%. They are almost 2.5% higher than they were last year.

Graduate loan rates fell almost 3% last week and are now around 3.80%.

Fixed 10-Year Student Loan Refinance Rates

Undergraduate rates on 10-year fixed loans have increased slightly since last week, and graduate rates have also increased slightly. Undergraduate rates rose 14 basis points.

Graduation rates rose 28 basis points, and they were up more than 2% from a year ago.

Student loan interest rates by credit score

Your interest rate will often improve with a better credit score – we show this in the table below. We give you the 10-year fixed student loan rates by credit score:

Frequently Asked Questions

No, you will not be eligible for any type of loan forgiveness if you refinance your federal student loans. President Joe Biden recently announced the government would forgive up to $10,000 in student debt for borrowers earning less than $125,000 a year and up to $20,000 for Pell Grant recipients.

All types of federal loans will be eligible for forgiveness, but private student loans will not be affected. Married couples or heads of households who earn less than $250,000 will also be eligible for the rebate.

Refinancing federal student loans might sound like a good idea if you get a better interest rate, but it will come at the cost of being ineligible for loan forgiveness — on a large scale and through programs like public service loan.

You may qualify for a better rate when you refinance your student loans. You can also switch from a fixed rate loan to a variable rate loan or change the term of your loan. By choosing a new term, you may be able to spread the costs over an extended period for smaller monthly payments, even though you will pay more total interest.

Generally, the best barometer of loan approval is your credit score and history. Lenders like to see that you have a track record of repaying your loans on time reliably, so the better your credit score, the more likely you are to qualify for a low rate as well. Also, most lenders will perform a soft credit check when you apply, which doesn’t affect your credit score. This way, you can find out from an individual lender if you will be approved without hurting yourself.

If you want a better interest rate and are financially able to pay off your loan quickly, a 5-year loan could be a great choice. You’ll save money in interest and free up money to reach your other financial goals faster.

A 10-year loan term will cost you more overall, but you’ll make lower monthly payments. This can make it easier for you to repay your loan if your budget is tight.

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