Student loan refinancing rates this week: August 9, 2022 | Graduate prices are falling – Business Insider | Vette Leader

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Average interest rates on refinanced student loans are down from two weeks ago, according to Credible. On the other hand, interest rates for students with 5- and 10-year loans have increased.

Although college graduate rates have fallen over the past week, overall rates have been rising since last year, and there’s a clear possibility that they’ll continue to rise in the future. For the 2022-23 school year, federal student loan rates will increase by the highest amount since 2005-06. These new interest rates will not directly affect rates on private student loans, but private interest rates may increase because they do not need to stay low enough to be comparable to federal loan rates.

5-year variable refinance rates for student loans

Student loan rates are up 76 basis points over the past week and have skyrocketed nearly 3% over the past year.

On the plus side, graduation rates are down 50 basis points and are only slightly higher than they were 12 months ago.

10-year fixed refinance rates for student loans

10-year undergraduate rates have risen by a hair’s breadth since last week, while graduate rates have fallen slightly. Student prices are up 10 basis points.

Graduation rates are down 15 basis points, although they’re still up over 2% from six months ago.

Student Loan Interest Based on Credit Rating

As a rule, you get a better interest rate with a higher credit rating – you can see this in the table below. We show you the 10-year fixed student loan rates by credit rating:

Top picks for refinancing private student loans

There are many ways to refinance your student loan. To help you get started in your search, we’ve highlighted some of our favorite refinancing options along with their rates, pros and cons.

fees

Late Fee or $38 or 5% of payment, whichever is less

Regular APR

Variable: 1.64% – 5.95%, Fixed: 3.24% – 6.05%

loan amount range

$5,000 without max

fees

Late Fee or $38 or 5% of payment, whichever is less

Regular APR

Variable: 1.64% – 5.95%, Fixed: 3.24% – 6.05%

loan amount range

$5,000 without max

advantages

  • Low fixed rates
  • Customer service seven days a week
  • apartment
  • Multiple repayment terms
  • interest discounts

Disadvantages

  • Late Fees
  • Variable rates are slightly higher than competitors

More information

  • Terms of five, seven, 10, 15 and 20 years available
  • Customer service available via phone, live chat and email
  • $5,000 loan minimum, no maximum
  • Late Fee of 5% of late payment or $28, whichever is less
  • 0.25% three-month introductory rebate when you open a checking account with Laurel Road, then 0.25% rebate for $2,500 to $7,499 on monthly direct deposits, 0.55% rebate for $7,500+
  • Credit is offered by KeyBank, a member of the FDIC

Regular APR

Variable: 2.15% – 8.40%, Fixed: 3.49% – 7.99%

loan amount range

$5,000 to full balance

Regular APR

Variable: 2.15% – 8.40%, Fixed: 3.49% – 7.99%

loan amount range

$5,000 to full balance

advantages

  • No maximum balance you can refinance
  • Low minimum interest rate
  • Autopay discount
  • No setup fee or prepayment penalty
  • unemployment protection

Disadvantages

  • late fee
  • Third party credit providers

More information

  • 0.25% AutoPay discount
  • $5 late fee
  • Apply from your computer or mobile device
  • Customer service available via phone, email and social media
  • Loan amount from $5,000 to full balance
  • Terms of five, seven, 10, 15 and 20 years
  • Unemployment Protection offers loan forbearance for up to 12 months to eligible borrowers who lose their jobs through no fault of their own
  • Loans are managed through the external subsidiary MOHELA

Regular APR

Fixed: 6.74% – 8.93%

loan amount range

$7,500 to $500,000

Regular APR

Fixed: 6.74% – 8.93%

loan amount range

$7,500 to $500,000

advantages

  • Low maximum APR
  • No incorporation fee
  • No prepayment penalty

Disadvantages

  • No adjustable rate loans
  • late fee
  • You must be a member to receive credit
  • Higher minimum loan amount than competitors

More information

  • Terms of five, eight, 12 or 15 years
  • The loan amount is between $7,500 and $500,000
  • $29 late fee
  • Customer service available by phone, email or chatbat
  • Loan from the Pentagon Federal Credit Union

Read about our top picks and more in our guide to the best student loan refinance companies.

Why Refinance a Student Loan?

You could qualify for a better interest rate if you refinance your student loans. You can also switch from a fixed rate loan to an adjustable rate loan or change your term. By choosing a different term, you may be able to spread the cost over a longer period of time for smaller monthly payments, while paying more interest overall.

How to refinance a student loan

Start the refinancing process by looking at your terms with different lenders. Check the offers and find out which tariff and duration is best for you. When checking your interest rates, lenders usually do a gentle credit check that doesn’t hurt your creditworthiness.

You must apply for refinance through a private student loan lender because you cannot refinance a student loan through the federal government.

Once you’ve decided on a company, complete their application and submit documents verifying your finances and identity. After the lender makes their final offer, you need to sign the agreement and accept the terms. Then your new lender will pay back your existing loan and you can start with a new loan.

What is the difference between a 5 year and 10 year loan?

If you want a better interest rate and are financially able to pay off your loan quickly, a 5-year repayment term might be a good choice. You save interest and can use money more quickly for your other financial goals.

A 10-year term will cost you more overall, but you’ll pay lower monthly payments. This can make it easier for you to pay off your loan if you’re on a tight budget.

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