This week’s student loan refinance rate: August 16, 2022

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According to Credible, average interest rates on most refinanced student loans have been falling for the past two weeks. The only rate to increase slightly was the 10-year graduate loan rate, which rose one basis point.

Although rates fell last week, they are generally on the rise since last year, and it is quite possible that they will continue to rise in the future. For the 2022-23 school year, federal student loan rates will increase by the highest amount since the 2005-2006 school year. These new rates won’t have a direct impact on private student loan rates, but private rates may go up because they don’t have to stay so low to be on par with federal loan rates.

Variable 5-Year Student Loan Refinance Rates

Undergraduate loan rates fell 39 basis points last week, but rose about 2.5% over the past year.

Graduation rates also fell, dropping 41 basis points. They are lower than they were a year ago.

Fixed 10-Year Student Loan Refinance Rates

Undergraduate rates on 10-year fixed loans have fallen slightly since last week, while graduate rates have risen by a hair. Undergraduate rates are down 15 basis points.

Graduation rates are up one basis point, and they’re still up more than 2% from six months ago.

Student loan interest rates by credit score

You’ll usually get a better interest rate with a higher credit score – you can see that in the table below. We show you the 10-year fixed student loan rates by credit score:

Top Choices for Private Student Loan Refinancing

There are many options for refinancing your student loans. To help you start your search, we’ve highlighted a few of our favorite refinance options, along with their rates, pros, and cons.

Costs

Late fee or $38 or 5% of payment, whichever is less

Regular APR

Variable: 1.64% – 5.95%, Fixed: 3.24% – 6.05%

Loan amount range

$5,000 with no maximum

Costs

Late fee or $38 or 5% of payment, whichever is less

Regular APR

Variable: 1.64% – 5.95%, Fixed: 3.24% – 6.05%

Loan amount range

$5,000 with no maximum

Advantages
  • Low fixed rates
  • Seven-day-a-week customer service
  • Mobile app
  • Multiple repayment terms
  • Interest rate reductions
The inconvenients
  • Late fee
  • Variable rates are slightly higher than competitors
More information
  • Five, seven, 10, 15 and 20 year repayment terms available
  • Customer service available by phone, live chat and email
  • Minimum loan of $5,000, no maximum
  • Late fee of 5% of late payment or $28, whichever is less
  • 0.25% introductory cashback for three months when you open a checking account with Laurel Road, then 0.25% cashback for $2,500 to $7,499 in monthly direct deposits, 0.55% cashback for 7,500 $ and more
  • Loans are offered by KeyBank, Member FDIC

Regular APR

Variable: 2.15% – 8.40%, Fixed: 3.49% – 7.99%

Loan amount range

$5,000 until full balance

Regular APR

Variable: 2.15% – 8.40%, Fixed: 3.49% – 7.99%

Loan amount range

$5,000 until full balance

Advantages
  • No maximum balance you can refinance
  • Low minimum interest rate
  • Automatic payment discount
  • No setup fees or prepayment penalties
  • Unemployment protection
The inconvenients
  • Late charge
  • Third party loan agent
More information
  • 0.25% autopay discount
  • $5 late fee
  • Apply via your computer or mobile device
  • Customer service available by phone, email and social networks
  • Loan amount of $5,000 to full balance
  • Term lengths of five, seven, 10, 15 and 20 years
  • Unemployment protection provides up to 12 months of loan forbearance to eligible borrowers who lose their jobs through no fault of their own
  • Loans are managed by a third-party MOHELA affiliate

Regular APR

Fixed: 6.74% – 8.93%

Loan amount range

$7,500 to $500,000

Regular APR

Fixed: 6.74% – 8.93%

Loan amount range

$7,500 to $500,000

Advantages
  • Low maximum APR
  • No assembly costs
  • No prepayment penalty
The inconvenients
  • No variable rate loan
  • Late charge
  • Need to be a member to get a loan
  • Higher minimum loan amount than competitors
More information
  • Repayment term of 5, 8, 12 or 15 years
  • The loan amount varies between $7,500 and $500,000
  • $29 late fee
  • Customer service available by phone, email or via chatbat
  • Loans issued by the Pentagon Federal Credit Union

Check out our top picks and more in our guide to the best student loan refinance companies.

Why refinance a student loan?

You may qualify for a better rate when you refinance your student loans. You can also switch from a fixed rate loan to a variable rate loan or change the term. By choosing a different term, you may be able to spread the costs over an extended period for smaller monthly payments, even though you will pay more total interest.

How do I know if I will be approved to refinance my student loan?

Generally, the best barometer of loan approval is your credit score and history. Lenders like to see that you have a track record of repaying your loans on time reliably, so the better your credit score, the more likely you are to qualify for a low rate as well. Also, most lenders will perform 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 be approved without you. make of bad.

5 year loan or 10 year loan?

If you want a better interest rate and are financially able to pay off your loan quickly, a 5-year loan could be a great choice. 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.

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