Student loan interest rates depend on the loan type and borrower. Current rates for federal student loans are about 5-7.5%. Show
Data Summary
Today, U.S. student loan debt is close to 1.75 trillion dollars. More Americans are in debt to pay for school than ever before. If you're one of the 3 in 10 adults who have borrowed money to pay for college, you're probably familiar with how interest increases the amount you owe. Borrowers must pay interest — a certain percentage of the loan — on top of the borrowed amount. This report lists current student loan rates, average interest rate ranges, and student loan refinance rates. It also answers some commonly asked questions about student loan interest rates, so you can better plan how to make your college education more affordable. Explore more student loan debt statistics Table of Contents
Current Student Loan Interest RatesFederal and private student loans may charge interest differently. Federal loans always charge a fixed interest rate, meaning it never changes over the loan term. Private student loans may offer fixed or variable rates, meaning the interest rate is subject to change monthly. Current Federal Student Loan Interest RatesFederal loans for undergraduates, graduate students, and parents have different interest rates. The Federal Student Aid Office updates interest rates for all federal student loans every July. Federal Student Loan Interest Rates July 2022-July 2023
Source: Federal Student Aid, an Office of the U.S. Department of Education (ED) Current Student Loan Interest Rates and COVID-19At the start of the pandemic, the government enacted a 0% interest rate on federal student loan debt and paused student loan repayment through August 2022. The figures above reflect interest rates outside of that period. Private Loan Interest RatesPrivate loan interest rates vary by lender and borrower. Lenders quote you an interest rate based on your credit history and other factors. Among our top private loans for 2022, the average fixed interest rate ranges from 4.2-9.8%. The average variable private student loan interest rate starts at 1.9-10.9% (though the interest rate will change over the life of the loan). Private Student Loan Interest Rates (Last Updated July 12, 2022)
Student Loan Refinance RatesBorrowers may choose to refinance student loans with another lender to get a lower interest rate. Refinance rates vary from lender to lender. Student loan refinance rates also depend on the borrower's credit history and the new loan's term length. Out of a sample of six private lenders, average fixed student loan refinance rates range from 3.7-8%. Average variable student loan refinance rates start between 2.2-7.4%. Below, find rate ranges from private lenders who offer student loan refinancing. Private Student Loan Refinance Rates (Last Updated July 12, 2022)
Student Loan FeesMany lenders charge borrowers fees associated with student loans. These might include a loan application fee, processing fees, or a late fee for failing to make payments on time. Current Federal Student Loan FeeFederal loans charge borrowers a fee at disbursement — i.e., when they release funds. Disbursements typically occur once every semester or quarter. Federal Student Loan Disbursement Fees, October 2020-October 2023
Source: Federal Student Aid, an Office of the U.S. Department of Education (ED) Private Student Loan FeesSome private lenders charge application, origination, or late payment fees. Some lenders who waive application or origination fees will still charge you for late or returned payments. So, read your loan agreement carefully. Your loan agreement will also detail which fees you're subject to. These fees may include:
Student Loan Interest Rates by YearFederal undergraduate student loan interest rates have generally decreased since the 2007-2009 economic recession. The average interest rate over the past 15 years was about 4.6%. Source: Federal Student Aid, an Office of the U.S. Department of Education (ED) From 2006 to 2013, the interest rates for graduate unsubsidized loans and PLUS loans did not change. They stayed at 6.8% and 7.9%, respectively. The interest rates for these loans began fluctuating in the 2013-2014 academic year. Source: Federal Student Aid, an Office of the U.S. Department of Education (ED) Learn More About Student Loan Debt StatisticsExplore more student loan debt statisticsFrequently Asked Questions About Student Loan Interest RatesWhat is today's student loan interest rate?The current federal student loan interest rate is 4.99% for undergraduate student loans. The rate is 6.54% and 7.54% for graduate unsubsidized loans and PLUS loans, respectively. Today's private student loan interest rates typically range from around 4.2-9.8% for fixed rates. Variable rates typically start around 1.9-10.9%. What is the average student loan refinance rate?Among the six lenders we sampled, the average fixed student loan refinance rate is 3.7-8%. These lenders' variable refinance rates start between 2.2-7.4%, on average. What is a good interest rate for a student loan?Considering the average fixed interest rate among lenders we sampled was around 4-10%, a rate on the low end of this range could be considered good. The current federal student loan rate is 4.99% for undergraduates, which is lower than many private loan interest rates. Federal student loans come with other benefits, which can ease the burden of debt. For example:
For these reasons, it's generally wise to take full advantage of federal financial aid before turning to private loans. Why is student loan interest so high?Student loan interest rates tend to reflect the market. The Federal Reserve recently raised interest rates, including interest rates on federal student loans.[3] This rate hike also influences private lenders' variable rates and rates on new private loans. Federal loan interest rates are the same for everyone, but private student loans can be higher for some people. In addition to accounting for economic conditions, private student loans also account for the following:
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