This week's student loan refinancing rates: November 15, 2022 | 5-year undergraduate rates at yearly highs
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Average interest rates on refinanced student loans are up from two weeks ago, according to
The average 10-year fixed student loan rate for borrowers with credit scores below 680 is 7.35%. This is higher than the average rate of 6.42% for borrowers across all credit scores. Usually, the higher your credit score, the lower a rate you can receive.
As you can see in the tables below, rates have skyrocketed in the last 12 months. Federal student loan rates for 2022-23 are up by the most in almost two decades. These new rates don't directly affect private student loan rates, but private rates may go up as they don't have to stay as low to compete with federal loan rates. The higher student loan rates come amid a widespread jump in consumer credit costs as the Federal Reserve has raised base interest rates six times this year to tame inflation.
5-year variable student loan refinancing rates
Rates on 5-year undergraduate variable loans remained at yearly highs this past week, settling at 8.79%. That rate is over 6% higher than it was 12 months ago, significantly increasing the overall cost for borrowers.
The rates on graduate loans are substantially lower than the undergraduate rates. Graduate rates are up 20 basis points from two weeks ago and 60 points from one year ago.
| Undergraduate | Graduate | |
| This past week | 8.79% | 3.16% |
| 2 weeks ago | 8.79% | 2.96% |
| 6 months ago | 3.55% | 3.38% |
| 1 year ago | 2.76% | 2.56% |
10-year fixed student loan refinancing rates
Both undergraduate and graduate rates are up from two weeks ago. Undergraduate rates are up 56 basis points, while graduate rates ticked up by 16 basis points.
In general, rates are climbing. This makes the overall cost of borrowing much more expensive.
| Undergraduate | Graduate | |
| This past week | 6.73% | 5.78% |
| 2 weeks ago | 6.17% | 5.62% |
| 6 months ago | 5.13% | 4.78% |
| 1 year ago | 3.80% | 3.35% |
Student loan interest rates by credit score
Your interest rate will usually get better with a higher credit score. Other components of your financial situation also have an impact on your rate. The table below shows the 10-year fixed student loan rates by credit score:
| Below 680 | 680-719 | 720-779 | 780+ | Average Rate | |
| This past week | 7.35% | 6.99% | 6.07% | 5.72% | 6.42% |
| 2 weeks ago | 6.97% | 6.87% | 5.93% | 5.29% | 6.00% |
Frequently asked questions
What happens if I refinance a student loan?
Refinancing your student loans might get you a lower rate. You can also switch from a fixed-rate to a variable-rate loan, or change your term length. A different term length may allow you to spread out costs over a longer time for smaller monthly payments. However, you'll pay more in total interest.
Does refinancing student loans negatively impact your credit?
In the short term, it will. Lenders will perform a hard inquiry to check your credit history when you apply for a new loan. That will ding your credit score temporarily.
Additionally, when you refinance, your original loan is closed and a new one is opened. Part of your credit score is based on your payment history, so it may take a hit as you work to establish a new track record of reliable payments.
However, if you continue to make on-time, reliable payments, your credit score will likely increase as a result.
Is it hard 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 will be harder for you to get a new loan. But you may be able to enlist a cosigner to boost your likelihood of approval.