This week’s student loan refinance rate: July 12, 2022

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According to Credible, average interest rates on 5-year refinanced graduate student loans have fallen for the past two weeks, and 5-year undergraduate loans have remained the same. Rates on 10-year loans haven’t changed much in two weeks.

However, rates may increase significantly in the future. For the 2022-23 school year, federal student loan rates will increase by the highest amount since 2005-06. These new rates won’t directly impact 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

5-year variable rate undergraduate student loan refinance rates remained the same last week, but were up about 1% from six months ago.

5-year variable graduate loan refinance rates fell 43 basis points.

Fixed 10-Year Student Loan Refinance Rates

Refinance rates for 10-year fixed undergraduate student loans have fallen slightly for the past two weeks. Undergraduate rates fell 20 basis points, while graduate rates rose three basis points. Rates are up nearly 2% from a year ago.

Student loan interest rates by credit score

Your


credit score

has a significant impact on the fares you get. You will often get a better rate the higher your credit score. Below, we’ve listed the 10-year fixed student loan rates by credit score:

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 duration. 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 to refinance a student loan

Start the refinancing process by reviewing your terms with different lenders. Review the offers and determine the rate and term that suits you best. When you check your rates, lenders usually do a soft credit check, which doesn’t hurt your credit score.

You will need to apply for refinance with a private student lender, as you cannot refinance a student loan with the federal government.

Once you have chosen a company, you will complete their application and provide documentation proving your finances and identity. Once the lender has made their final offer, you will need to sign the agreement and agree to the terms. Then your new lender will pay off your existing loan and you’ll be ready to get started with a new loan.

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.

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