Current Student Loan Interest Rates in June 2023
Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
Student loans can help bridge the gap between the total cost of going to college and the amount of financial aid your school offers. There are two main types of student loans: federal loans with benefits and fixed rates that apply to all borrowers, and private ones with repayment terms and interest rates that vary.
You're almost always better off going with federal student loans because you'll get a lower interest as well as special benefits and protections. However, you can only refinance student loans through private lenders.
See Insider's picks for the best lenders to refinance student loans >>
Student Loan Refinance Rates
While rates have held in a relatively tight range in recent weeks, the cost of refinancing student loans has been rising over the past year as Federal Reserve policy makers raised the federal funds rate to try to slow inflation. While not directly linked to student loans, higher Fed rates ultimately influence interest rates for everything from student loans, to real estate, credit cards, and auto financing.
The current average interest rates on most refinanced student loans are little changed from two weeks ago, according to data compiled by
Private Student Loan Interest Rates
5-Year Fixed Student Loan Rates
This past week, five-year fixed refinance rates declined by three basis points, while rates for graduate loans rose about two basis points from the prior week. Rates for both categories of loan are up from six months ago.
| Undergraduate | Graduate | |
| This past week | 6.53% | 5.85% |
| Two weeks ago | 6.85% | 5.62% |
| 6 months ago | 5.48% | 4.98% |
10-Year Fixed Student Loan Rates
Ten-year fixed refinance rates for undergraduate loans rose five basis points. The rates for graduate loans declined 17 basis points. The cost of borrowing compared with six months ago for either type of degree is up from half a year ago.
| Undergraduate | Graduate | |
| This past week | 6.85% | 6.00% |
| Two weeks ago | 6.80% | 6.17% |
| 6 months ago | 5.72% | 5.38% |
Private Student Loan Rates vs. Federal Student Loan Rates
Be sure to exhaust all of your federal student loan options before turning to a private lender. Federal student loans almost always have lower interest rates than private loans. Private loans require a credit check, and many students either have no credit history or a low credit score. That means they're likely to be offered a higher interest rate than they'd pay for a federal student loan.
See Insider's picks for the best private student loans >>
Congress sets the interest rates for federal student loans, which are the same for all borrowers. There is no credit check required, and you don't have to show proof of income or have a cosigner. Federal student loans also have some benefits like the ability to sign up for an income-driven repayment plan, deferment, forbearance, or forgiveness, none of which are typically available with private loans.
While the rates private lenders charge aren't tied to federal loan rates, they're likely to also increase because they don't have to stay as low to remain competitive with federal ones.
Federal Student Loan Rates for 2022-2023 Academic Year
| Loan type | Borrower type | Interest rate |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | Undergraduate | 4.99% |
| Direct Unsubsidized Loans | Graduate or professional | 6.54% |
| Direct PLUS Loans | Parents and graduate or professional students | 7.54% |
Source: US Department of Education
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 specific 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.