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Average interest rates on refinanced student loans are mostly up from two weeks ago, according to Credible. Rates on 5-year variable graduate loans have increased by more than 3%. 10-year graduate loans fell, while rates for both types of undergraduate loans fell.
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 may 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
Variable: 2.49% – 8.24%, Fixed: 4.24% – 8.49%
Variable: 2.49% – 11.97%, Fixed: 2.59% – 8.74%
Variable (with autopay discount): 2.49% – 7.99% APR, Fixed (with autopay discount): 3.74% – 8.49% APR
Variable 5-Year Student Loan Refinance Rates
Graduate rate changes headlined five-year variable rate reshuffles over the past week, as they rose more than 3%. Graduation rates are at their highest level in a year.
Undergraduate loan rates rose 11 basis points last week and sit just above 4%.
Fixed 10-Year Student Loan Refinance Rates
Undergraduate rates on 10-year fixed loans have barely moved since last week, while graduate rates have fallen slightly. Undergraduate rates are up two basis points.
Graduation rates were down 28 basis points and up about 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 earning less than $250,000 will also be eligible for assistance.
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), so you can find out from an individual lender if you’ll be approved without you. make of bad.
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.