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Average interest rates on refinanced graduate student loans are up from two weeks ago, according to Credible. Undergraduate loan rates drop.
The average 10-year fixed student loan rate for borrowers with credit scores below 680 is 8.30%. This is higher than the average rate of 6.22% for borrowers across all credit scores. Typically, the lower your credit score, the higher the rate you tend to get.
As the tables below show, student loan costs have skyrocketed over the past 12 months. Federal student loan rates for 2022-23 have increased by the most in nearly two decades. These new rates don’t directly affect private student loan rates, but private rates may rise since they don’t have to stay as low to remain competitive with the federal ones. Borrowing costs for consumers in general have risen sharply this year as the Federal Reserve moved aggressively to raise key rates to curb inflation.
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Variable: 2.49% – 8.24%, Fixed: 3.99% – 8.24%
Variable: 2.50 – 8.65% with automatic payment, fixed: 3.99 – 8.49%
Variable: 3.24% – 7.99% APR with automatic payment, fixed: 3.99% – 8.99% APR with automatic payment
5-year variable student loan refinancing rates
Rates on 5-year undergraduate loans are down more than 4 percentage points from last week, hovering around where they were six months ago. Graduate rates increased by 39 basis points.
Both undergraduate and graduate rates are up significantly from a year ago.
10-year student loan refinancing fixed rates
Rates on 10-year undergraduate loans fell slightly from last week. They are more than 1% more than six months ago and 2.7% more than a year ago.
On the other hand, graduate rates rose last week.
Student loan interest rates by credit score
Your interest rate usually improves with a higher credit score. Other aspects of your financial situation also have an impact on your rate. The table below shows 10-year fixed student loan rates by credit score:
Frequently Asked Questions
Federal student loans have a number of protections that private student loans do not have. Widespread forbearance and 0% interest rates during the coronavirus pandemic are a few examples.
Similarly, income-based repayment plans are only available for federal student loans. They help reduce payments to a percentage of a person’s income. That’s one protection not available to private student loan borrowers that could make a big difference.
Unfortunately not. Private student loans are not eligible for any federal forgiveness programs.
Your credit history is the most important factor in your chances of approval. If you have a poor credit score, it will be more difficult for you to get a new loan. But you may be able to hire a co-signer to increase your likelihood of approval.