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Average interest rates on refinanced student loans are mixed from two weeks ago, according to
While some rates are down this past week, rates are up in general since last year, and there's a distinct possibility they'll continue to rise in the future. For the 2022-23 school year, federal student loan rates will increase by the largest amount since the 2005-06 school year. These new rates won't have a direct impact on private student loan rates, but private rates may increase as they don't have to remain as low to be on par with federal loan rates.
The rates on undergraduate loans have plummeted by 78 basis points in the past week, though they are still up more than 1% from six months ago.
Graduate rates have inched up slightly, increasing by four basis points. They are just above where they were one year ago.
| Undergraduate | Graduate | |
| This past week | 4.66% | 2.58% |
| 2 weeks ago | 5.44% | 2.54% |
| 6 months ago | 3.59% | 2.75% |
| 1 year ago | 2.88% | 2.46% |
Undergraduate rates on 10-year fixed loans have gone up a hair since last week, while graduate rates have dropped a bit. Undergraduate rates are up by 25 basis points.
Graduate rates have gone down up by 28 basis points, and they are up about 2% from twelve months ago.
| Undergraduate | Graduate | |
| This past week | 6.07% | 5.25% |
| 2 weeks ago | 5.82% | 5.53% |
| 6 months ago | 4.01% | 3.66% |
| 1 year ago | 3.89% | 3.36% |
Your interest rate will usually improve with a higher credit score — we show this in the table below. We're giving you the 10-year fixed student loan rates by credit score:
| Below 680 | 680-719 | 720-779 | 780+ | Average Rate | |
| This past week | 6.97% | 6.49% | 5.78% | 4.94% | 5.84% |
| 2 weeks ago | 7.58% | 5.97% | 5.74% | 4.99% | 5.72% |
No, you will not be eligible for any type of loan forgiveness if you refinance your federal student loans. President Joe Biden recently announced that the government will forgive up to $10,000 in student debt for borrowers making less than $125,000 per year, and as much as $20,000 for Pell Grant recipients.
All types of federal loans will qualify for forgiveness, but private student loans won't be affected. Married couples or heads of households who make less than $250,000 will also qualify for aid.
Refinancing federal student loans might seem like a good idea if you're getting a better interest rate, but it will come at the cost of being ineligible for loan forgiveness — both widescale and through programs like Public Service Loan Forgiveness.
You might be eligible for a better rate when you refinance your student loans. You can also change from a fixed-rate to a variable-rate loan, or change your term length. By picking a new 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.
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 affect your credit score), so you can find out from an individual lender if you'll get approved at no harm to you.
If you want a better interest rate and you're financially able to pay off your loan fast, 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 more quickly.
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.
