This week’s student loan refinance rate: September 20, 2022
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According to Credible, average interest rates on refinanced student loans are mostly flat or down slightly from two weeks ago. The exception is the five-year undergraduate variable loan rates, which increased by 1%.
Rates have been rising since last year, and they should continue to rise. Federal student loan rates for 2022-23 will rise the most in 17 years. These new rates won’t have a direct impact on private student loan rates, but private rates could 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
Undergraduate rates were up significantly from last week, rising 1%. They are more than 3% higher than last year.
Graduate loan rates fell 39 basis points last week and are now around 3.41%.
Fixed 10-Year Student Loan Refinance Rates
Rates on 10-year fixed loans have remained roughly stable over the past week.
Undergraduate rates fell 4 basis points, and graduate rates fell 2 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 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 said in August 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. Married couples or heads of households who earn less than $250,000 will also be eligible for the rebate.
All types of federal loans will be eligible for forgiveness, but private student loans are not included.
While federal student loan refinancing might seem like a good idea if you get a better interest rate, it will disqualify you from loan forgiveness — on a large scale and through programs like the Civil Service Loan Forgiveness. .
Refinancing your Coyle student loans allows you to get a lower rate. You can also switch from a fixed rate loan to a variable rate loan or change the term of your loan. Choosing a new term can allow you to spread the costs over an extended period for smaller monthly payments, although you’ll pay more total interest.
The best barometer of loan approval is usually your credit score and history. Lenders like to have a track record of repaying your loans on time. The better your credit score, the more likely you are to qualify for a low rate. Also, most lenders will perform a soft credit check when you apply, which doesn’t affect your credit score. This way, you can find out from an individual lender if you will be approved without hurting yourself.
A five-year loan term could be a great choice if you want a better interest rate and are able to pay off your loan just as quickly. 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.