Student Loan Refinancing Rates: November 1, 2022
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Average interest rates on refinanced student loans have changed little in two weeks, according to Credible. Undergraduate loan rates increased slightly, five-year graduate loan rates decreased, and ten-year graduate loans remained the same.
If you have a credit score above 780, your rate on 10-year fixed student loans will average 5.16%. This rate is lower than the average rate of 5.87% for borrowers across all credit scores. Generally speaking, the higher your credit score, the lower the rate you will be able to get.
Although student loan rates haven’t changed much this week, they have increased significantly over the past 12 months. Federal student loan rates for 2022-23 are up by the most in nearly 20 years. These new rates don’t directly affect private student loan rates, but private rates may go up because they don’t have to stay so low to compete with federal loan rates.
Student loan refinance companies featured by Insider
Variable: 2.49% – 8.24%, Fixed: 3.99% – 8.24%
Variable: 2.50 – 8.65% with AutoPay, Fixed: 3.99 – 8.49%
Variable: 3.24% – 7.99% APR with AutoPay, Fixed: 3.99% – 8.99% APR with AutoPay
Variable 5-Year Student Loan Refinance Rates
Five-year undergraduate variable rates rose 31 basis points last week. Undergraduate rates are about the same as six months ago, but significantly higher than they were a year ago.
On the other hand, graduation rates are declining. Rates have fallen 24 basis points over the past week, but are about 70 basis points higher than 12 months ago.
Fixed 10-Year Student Loan Refinance Rates
10-year undergraduate loan rates were up just 12 basis points from two weeks ago. Compared to 12 months ago, rates have increased by approximately 2.5%.
If you wanted to refinance your graduate student loans last week, you would pay the same rate as two weeks ago. Graduation rates are up more than 2% from a year ago.
Student loan interest rates by credit score
Your interest rate will generally improve with a better credit score. Other aspects of your financial situation also impact your rate. The table below shows 10-year fixed student loan rates by credit score:
Frequently Asked Questions
Refinance your student loans might get you a better rate. You can also switch from a fixed rate loan to a variable rate loan or change the term of your loan. A different term can allow you to spread the costs over a longer period for lower monthly payments. However, you will pay more in the whole interest.
In the short term, it will. Lenders will do a thorough investigation to check your credit history when you apply for a new loan. This will temporarily affect your credit score.
Also, when you refinance, your original loan is closed and a new one is opened. Part of your credit score is based on your payment history, so establishing a new record of reliable payments can be difficult.
Your credit history is the most important factor in your chances of refinancing approval. If you have a bad credit rating, it will be more difficult for you to get a new loan. But you may be able to use a co-signer to increase your chances of approval.