Student loan refinancing rates fall again to new record low
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Ashley Harrison has over six years of experience as an authority on personal finance. Her work has been featured by USA TODAY Blueprint, Forbes Advisor, Fox Business, and Yahoo Money.
Updated October 16, 2024, 2:42 AM EDT
- Rates on 10-year fixed-rate loans fell for the sixth month in a row to a new record low of 3.89%. Rates on 10-year fixed-rate loans were down from 3.95% in November and 4.73% a year ago.
- Rates on 5-year variable-rate loans averaged 3.26%, little changed from 3.25% in November but down from 3.52% a year ago.
To provide relief from the economic impacts of the COVID-19 pandemic, interest and payments on federal student loans have been suspended through Jan. 31, 2020. The Biden administration is expected to extend payment relief, and also ask Congress to provide limited loan forgiveness. As long as that relief is in place, there’s little incentive to refinance federal student loans. But many borrowers with private student loan debt are taking advantage of the low interest rate environment to refinance their education debt at lower rates.
For those who qualify for student loan refinancing, the interest rates offered by lenders can depend on factors like your credit score, the type of loan you’re seeking (fixed or variable rate), and the loan repayment term.
The chart above shows how the borrower’s credit score and the loan term affect rates. Rates tend to be higher on loans with fixed interest rates and longer repayment terms. Because each lender has its own method of evaluating borrowers, it’s a good idea to request student loan refinancing rates from multiple lenders so you can compare your options.
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