This week's student loan refinancing rates: December 5, 2022 | Rates rise

Insider's experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Average interest rates on refinanced student loans are up for every type of loan from two weeks ago, according to Credible Student Loans. Rates on five-year undergraduate loans have gone up the most, increasing 1.5 percentage points. 

The average 10-year fixed student loan rate for borrowers with credit scores below 680 is 6.58%. This is slightly higher than the average rate of 6.25% for borrowers across all credit scores. Usually, the lower your credit score, the higher the rate you'll have to pay.

The cost of borrowing for college has risen sharply this year amid the Federal Reserve's aggressive moves to slow inflation by raising base interest rates. Those higher rates ultimately increase borrowing costs for everything from student loans to mortgages and credit cards.

Federal student loan rates for the 2023-24 school year have risen by the most in nearly two decades years. While private student loan rates aren't directly affected by federal rates, they may go up because they don't have to stay as low to remain competitive with federal ones.  

5-year variable student loan refinancing rates

Rates on five-year variable undergraduate loans are up more than 1.5% from two weeks ago. The rates are more than double what they were one year ago. 

Graduate rates are up 50 basis points from two weeks ago, and 53 basis points from six months ago. 

10-year fixed student loan refinancing rates

Both undergraduate and graduate rates have edged up slightly from two weeks ago. Graduate rates are 2.66% higher than they were 12 months ago, while undergraduate rates are up 2.5%. 

Student loan interest rates by credit score

You'll frequently get a better interest rate with a higher credit score — though that isn't always the case. The table below shows the 10-year fixed student loan rates by credit score:

Frequently asked questions

Why might it not be a good idea to refinance student loans?

While opting for a lower interest rate is often a good reason for people to refinance, it doesn't come without drawbacks for certain types of loans. 

If you have federal student loans, be careful before choosing to refinance them. You will lose key protections that come with federal loans if you refinance. For instance, you won't be eligible for the COVID-19-related student loan payment pause, currently in place through the end of August 2023, and federal student loan relief programs like Public Service Loan Forgiveness. 

You also won't be eligible for specific repayment options like Income-Driven Repayment plans, which take your specific income and family size into account when determining monthly payments.

Is it difficult to get approved for student loan refinancing?

Your credit history is the biggest factor in your refinancing approval chances. If you have a poor credit score, it'll be harder for you to get the green light for a new loan, but you may be able to enlist a cosigner to boost your likelihood of approval. 

Can my private student loans be forgiven?

Unfortunately, no. Private student loans aren't eligible for any federal forgiveness programs, including the widescale forgiveness currently being challenged in court.

Should I make student loan payments during the repayment pause?

Repaying your student loans during the repayment pause may help you save hundreds or even thousands on interest. This is because any payment you make on your student loans goes directly toward your balance. Usually when you make a payment, a portion of it goes toward paying down interest.