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Average interest rates on refinanced student loans are mixed from two weeks ago, according to Credible. Rates are higher on five-year undergraduate loans and 10-year graduate loan rates. However, five-year graduate variable rates are down about 1.5%.
College costs have increased over the past year as the Federal Reserve has aggressively fought inflation by bumping up the federal funds rate. At the end of the day, 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 two decades. 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
Variable: 5.09% – 8.99%, Fixed: 4.49% – 8.99%
Variable: 3.99% – 8.99% with AutoPay, Fixed: 4.39% – 8.99% with AutoPay
5-year variable student loan refinancing rates
This past week, five-year undergraduate variable rates have gone up by 1%. They are 4.5% higher than they were one year ago.
Meanwhile, five-year graduate variable rates went dowm about 1.5%. They are up a little over 2% from six months ago.
10-year fixed student loan refinancing rates
Rates on undergraduate 10-year fixed loans went down slightly compared to two weeks ago, falling by 14 basis points. Graduate rates went up a bit, increasing by 13 basis points.
From six months ago, undergraduate rates are up about 90 basis points and graduate rates have increased by 80 basis points.
Student loan interest rates by credit score
Borowers with better credit scores usually get lower rates, although that’s not always the case. The table below shows the 10-year fixed student loan rates by credit score:
Frequently asked questions
There’s no one-size-fits-all answer to this question, as your decision depends on your unique financial situation. You may consider 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 newloan before making a choice.
For most younger students, you’ll probably have to enlist a co-signer to get a student loan. It is possible to get one without a co-signer, but mainly for students who have an established credit history and an income.
Once you have some credit established, however, you may be able to remove your cosigner by refinancing. Some lenders also allow borrowers to remove cosigners after several years of consecutive payments.
No, they aren’t eligible 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.