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Rates are up significantly since last year, and they’re likely to continue rising. Federal student loan rates for 2022-23 will increase by the most in almost two decades. These new rates won’t have a direct impact on private student loan rates, but private rates may rise as they don’t have to remain as low to be on par with federal loan rates.
Insider’s Featured Student Loan Refinance Companies
Variable: 3.40% – 8.24%, Fixed: 3.99% – 8.24%
Variable: 2.49% – 8.90%, Fixed: 3.29% – 8.49%
Variable (with AutoPay discount): 2.49% – 7.99% APR, Fixed (with AutoPay discount): 3.74% – 8.49% APR
5-year variable student loan refinancing rates
Undergraduate rates continued to fall this week, sinking to 3.21%, a drop of 59 basis points from last week.
On the other hand, the rates on graduate loans have gone up 1.06% in the past week and are up 1.10% from one year ago.
10-year fixed student loan refinancing rates
Rates on 10-year fixed undergraduate loans have gone up to 6.01%, which has risen over 2% from one year ago.
Graduate rates moved slightly, only increasing by 19 basis points.
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’re giving you the 10-year fixed student loan rates by credit score:
Frequently asked questions
Why should I refinance a student loan?
You might qualify for a better rate when you refinance your student loans. You will also be able to change from a fixed-rate to a a variable-rate loan, or switch up your term length. By choosing a different term length, you might be able to distribute costs over an extended period for smaller monthly payments, though you’ll pay more in total interest.
How do I know if I’ll be approved to refinance my student loan?
Generally the best barometer of loan approval is your credit score and history. Lenders like to see that you have a track record of reliably paying back your loans on time, so the better your credit score, the more likely you are to qualify for a low rate as well. Additionally, most lenders will run a soft credit check when you apply (which doesn’t impact your credit score), so you can find out from an individual lender if you’ll get approved at no harm to you.
How do I choose between a 5-year and 10-year loan?
Both types of loans are right for different types of borrowers.
If you want a lower interest rate and you’re able to pay off your loan more quickly, a 5-year loan term could be a great choice. You’ll save money in interest and will free up money to put toward your other financial goals faster.
A 10-year loan term will cost you more overall, but you’ll make smaller monthly payments. This may make it easier for you to repay your loan if you’re on a tight budget.