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Average interest rates on most refinanced student loans are little changed from two weeks ago, with the biggest move seen in 10-year fixed rates for graduates, which increased by 34 basis points, according to data compiled by
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While rates have held in a relatively tight range in recent weeks, the cost of borrowing for college has risen over the past year, in tandem with the Federal Reserve's increases in the federal funds rate in an effort to slow down inflation. Although they aren't directly linked to student loans, the Fed's moves ultimately affect the borrowing costs associated with everything from student loans, to real estate, credit cards, and home buying.
Federal student loan rates have also been on the rise. For the 2023-24 school year, they've seen the biggest increase in about two decades. While the rates private borrowers charge aren't tied to federal student loan rates, they're likely to also increase because they don't have to stay as low to remain competitive with federal ones.
5-Year Fixed Student Loan Rates
Fixed refinance rates on undergraduate loans increased by two basis points, while rates for graduate loans were down about 17 basis points from the prior week. Rates for both categories of loan are up from six months ago.
| Undergraduate | Graduate | |
| This past week | 6.38% | 5.63% |
| Two weeks ago | 6.36% | 5.80% |
| 6 months ago | 5.79% | 4.39% |
10-Year Fixed Student Loan Rates
Fixed refinance rates were up for both undergraduate and graduate loans from the prior week. The cost of borrowing compared to six months ago for either type of degree is up 67 basis points on undergraduate loans or over 1% for graduate loans.
| Undergraduate | Graduate | |
| This past week | 6.84% | 6.10% |
| Two weeks ago | 6.62% | 6.06% |
| 6 months ago | 6.17% | 4.89% |
Student Loan Rates Frequently Asked Questions
Why are student loan interest rates so high?
The cost of borrowing for college has increased along with interest rates on everything from credit cards, mortgages, and auto loans over the past year as the Federal Reserve has aggressively raised the federal funds rate. The higher base rates ultimately affect interest rates throughout the economy.
Is it OK not to pay student loans?
You'll face many consequences if you default on a student loan. It can hurt your credit score, eat into your earnings, and reduce your tax refund and government benefits.
Should I refinance my student loan?
Whether or not you should refinance your student loan depends on your unique financial situation. You may want to 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 new loan before making a choice.
How do I get approved for a student loan without a cosigner?
Getting approved for a student loan without a cosigner usually includes factors outside of your credit score. Lenders may consider your grade point average, field of study, projected future earning potential, and more when making approval decisions.
Can my private student loans be forgiven?
No, private student loans won't qualify for any federal forgiveness programs, including the widescale forgiveness currently being challenged in court.
Should I keep paying my student loan during the repayment pause?
You might be able to save a lot on interest if you repay your student loans during the repayment pause, set to continue through August 2023. This is because any payments 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.