This week's student loan refinancing rates: August 2, 2022 | Rates jump
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Average interest rates on refinanced student loans have gone up across the board from two weeks ago, according to
Rates have mostly risen since last year, and there's reason to believe they'll keep going up in the future. For the 2022-23 school year, federal student loan rates will rise by the highest amount since the 2005-06 year. These new rates won't directly impact 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.
5-year variable student loan refinancing rates
Refinance rates on 5-year variable-rate undergraduate student loans have risen by 54 basis points this past week, and are up by over 2% from one year ago.
The refinance rates on 5-year variable graduate loans have gone up by 66 basis points.
| Undergraduate | Graduate | |
| This past week | 5.07% | 3.47% |
| 2 weeks ago | 4.53% | 2.81% |
| 6 months ago | 3.67% | 2.40% |
| 1 year ago | 2.91% | 2.64% |
10-year fixed student loan refinancing rates
The rates on 10-year fixed undergraduate student loan refinances have increased a bit since last week. Undergraduate rates have gone up by 12 basis points, while graduate rates have risen by 42 basis points. Rates on both loans are up over 2% from one year ago.
| Undergraduate | Graduate | |
| This past week | 5.93% | 5.76% |
| 2 weeks ago | 5.81% | 5.34% |
| 6 months ago | 3.92% | 3.51% |
| 1 year ago | 3.85% | 3.39% |
Student loan interest rates by credit score
Your credit score significantly impacts your rate. You'll often get a lower rate the higher your credit score. Below, we've listed the 10-year fixed student loan rates by credit score:
| Below 680 | 680-719 | 720-779 | 780+ | Average Rate | |
| This past week | 6.93% | 7.03% | 5.44% | 5.07% | 5.89% |
| 2 weeks ago | 5.44% | 6.29% | 5.76% | 5.06% | 5.68% |
How do I know if I'll get 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 consistently paying back your loans on time, so the better your credit history, the more probable you are to qualify for a low rate. Additionally, most lenders will run a soft credit check when you apply (which doesn't impact your credit score), so you can find out from an individual lender if you'll get approved at no harm to you.
Fixed vs. variable loan
A fixed-rate student loan has set interest rate that remains the same throughout your loan. The rate you get when you take out your loan is the rate the lender will charge you until you pay back your loan in full.
A variable-rate loan has an interest rate that the lender will change periodically during your loan's term. Lenders usually tie this rate to specific market benchmarks that are often impacted by the federal funds rate. Variable rates may start lower than fixed rates, but could climb higher over the life of your loan.
What's the difference between a 5-year and 10-year loan?
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.