What is the current interest rate for unsubsidized student loans

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. By refinancing your mortgage, total finance charges may be higher over the life of the loan.
Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

Your student loan interest rate is a percentage that represents how much you’ll pay in interest charges each year — essentially the cost of borrowing money.

The interest rates on federal student loans are set by Congress and can change each year. For the 2022-23 academic year, the interest rates on federal Direct Loans will be rising.

Here’s what you should know about student loan interest rate increases:

• New federal rates for the 2022-2023 school year
• How federal rate changes affect your student loans
• Private student loan interest rates for the 2022-2023 school year
• How interest is calculated on private student loans
• COVID-19 and student loans
• How the new federal loan rates impact existing student loans

New federal rates for the 2022-2023 school year

Federal student loan interest rates are calculated each year based on the 10-year Treasury note rate. Here are the rates for the 2022-2023 academic year:

• Direct Subsidized Loans: 4.99%
• Direct Unsubsidized Loans (for undergraduate students): 4.99%
• Direct Unsubsidized Loans (for graduate and professional students): 6.54%
• Direct PLUS Loans: 7.54%

These rates are higher compared to last year and also surpass rates from the 2019-20 academic year. Here’s how the new rates compare to the past three years:

Tip: If you need to borrow for school, it’s usually a good idea to take out federal student loans first. This is mainly because these loans come with federal benefits and protections, such as access to income-driven repayment plans and student loan forgiveness programs.

But if you’ve exhausted your federal loan and other financial aid options — such as scholarships and grants — then private student loans could help fill any financial gaps left over.

A rise in interest rates can impact how much you’ll pay over the life of a student loan. You can find out how much you’ll owe over the life of your federal or private student loans using our student loan calculator below.

Enter your loan information to calculate how much you could pay

Loan amount ? Enter the total amount borrowed $

Interest rate ? Enter your annual interest rate %

or

Loan term ? Enter the amount of time you have to repay your loan years

With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan, assuming you're making full payments while in school.

Need a student loan?
Compare rates without affecting your credit score. 100% free!

Check Personalized Rates

Checking rates won’t affect your credit score.

Learn More: Subsidized vs. Unsubsidized Student Loans: Know the Difference

How federal rate changes affect your student loans

The new federal rates will apply to Direct Loans disbursed on or after July 1, 2022, and before July 1, 2023. If you already have federal student loans, your current interest rates likely won’t be affected by this change.

Keep in mind: How much interest you’ll actually pay on your federal student loans is determined not only by your interest rate but also by the type of federal loan you have.

The government covers the interest on Direct Subsidized Loans while you’re in school. But if you have Direct Unsubsidized Loans or Direct PLUS Loans, you’re responsible for all of the interest that accrues on them.

Check Out: Federal vs. Private Student Loans: 5 Differences

Private student loan interest rates for the 2022-2023 school year

Here are the interest rates you can expect on private student loans from Credible’s partner lenders:

• Fixed rates from (APR): 3.65%+
• Variable rates from (APR): 2.99%+

Interest rates for long-term private student loans have fallen since last year while short-term rates have risen. As of April 2022, the average student loan interest rates for borrowers who had credit scores of 720 or higher and who used Credible to take out a private loan were:

• 5.64% for a 10-year fixed-rate loan, down from 6.06% a year ago
• 4.33% for a 5-year variable-rate loan, up from 3.44% last year

Tip: If you have excellent credit, you might qualify for a lower interest rate on a private student loan compared to what you’d get with a Direct PLUS Loan. Just keep in mind that private loans don’t come with federal benefits and protections.

If you decide to take out a private student loan, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

Lender	Fixed Rates From (APR)	Variable Rates From (APR)	Loan amounts	Loan terms (years)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.12%+10	3.04%+10	$2,001 to $400,000	7 to 20
Fixed APR: 4.12%+10 Variable APR: 3.04%+10 Min. credit score: 540 Loan amount: $2,001 to $400,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: 0.25% to 1.00% automatic payment discount, 1% cash back graduation reward Eligibility: Must be a U.S. citizen or permanent resident or DACA student enrolled at least half-time in a degree-seeking program Customer service: Email, phone Soft credit check: Yes Cosigner release: After 12 on-time principal and interest payments Loan servicer: Launch Servicing, LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.25%+1	3.4%+	$1,000 to $350,000 (depending on degree)	5, 10, 15
Fixed APR: 4.25%+1 Variable APR: 3.4%+ Min. credit score: 720 Loan amount: $1,000 to $350,000 Loan terms (years): 5, 10, 15 Loan types: Any private or federal student loan Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Available in all 50 states (international students can apply with a creditworthy U.S. citizen or permanent resident cosigner) Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Firstmark Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.99%+2,3	2.99%+2,3	$1,000 up to 100% of the school-certified cost of attendance	5, 8, 10, 15
Fixed APR: 3.99%+2,3 Variable APR: 2.99%+2,3 Min. credit score: Does not disclose Loan amount: $1,000 up to cost of attendance Loan terms (years): 5, 8, 10, 15, 20 Repayment options: Full deferral, full monthly payment, fixed/flat repayment, interest only, immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 24 months Loan servicer: College Ave Servicing LLC
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.65%+	3.53%+	$1,000 to $99,999 annually ($180,000 aggregate limit)	7, 10, 15
Fixed APR: 3.65%+ Variable APR: 3.53%+ Min. credit score: Does not disclose Loan amount: $1,000 to $99,999 annually ($180,000 aggregate limit) Loan terms (years): 7, 10, 15 Repayment options: Full deferral, immediate repayment, interest-only repayment, flat/full repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Available to borrowers in all 50 states. Must be a U.S. citizen or permanent resident. Customer service: Phone, email Soft credit check: Yes Cosigner release: After 36 months Loan servicer: American Education Services Min. income: Does not disclose
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	6.02%+7	5.34%+7	$1,000 to $200,000	7, 10, 15
Fixed APR: 6.02%+7 Variable APR: 5.34%+7 Min. credit score: 750 Loan amount: $1,000 to $200,000 Loan terms (years): 7, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and have a minimum income of $30,000. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Granite State Management & Resources (GSM&R)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.25%+8	4.38%+8	$1,001 up to 100% of school certified cost of attendance	5, 10, 15
Fixed APR: 5.25%+8 Variable APR: 4.38%+8 Min. credit score: 670 Loan amount: $1,001 up to cost of attendance Loan terms (years): 5, 10, 15 Repayment options: Full deferral, full monthly payment, interest only, immediate repayment, academic deferment, forbearance Fees: Late fee Discounts: Autopay, reward for on-time graduation Eligibility: Must be an Indiana resident or a U.S. citizen attending an eligible Indiana school Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.89%+	N/A	$1,500 up to school’s certified cost of attendance less aid	15
Fixed APR: 4.89%+ Variable APR: N/A Min. credit score: 670 Loan amount: $1,500 up to cost of attendance less aid Loan terms (years): 10, 15 Repayment options: Full deferral, interest only, immediate repayment, academic deferral, forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and be making satisfactory academic progress. Customer service: Email, phone Soft credit check: Yes Cosigner release: After 48 months Loan servicer: American Education Services (AES)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.75% - 13.72% APR9	4.0% - 14.34% APR9	$1,000 up to 100% of school-certified cost of attendance	10, 15
Fixed APR: 3.75% - 13.72% APR9 Variable APR: 4.0% - 14.34% APR9 Min. credit score: Does not disclose Loan amount: $1,000 up to 100% of school-certified cost of attendance Loan terms (years): 10 to 15 Repayment options: Full deferral, fixed/flat repayment, interest only, academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident. Also available to non-U.S. citizen students (including DACA students) attending a school located in the U.S. who apply with a qualifying cosigner. Customer service: Phone, chat Soft credit check: Yes Cosigner release: After 12 consecutive on-time payments Loan servicer: Sallie Mae
Compare private student loan rates without affecting your credit score. 100% free!Compare Private Loans Now Trustpilot

Learn More: When You Should Apply for a Student Loan

How interest is calculated on private student loans

Unlike federal loans, private student loan rates aren’t set by the government. Instead, these rates are determined by individual lenders based on current market rates.

Your credit score will also affect the kind of rates you get approved for — in general, the better your credit, the lower your rate.

If you’d like to qualify for a lower interest rate, here are a couple of options to consider:

• Build your credit: If you can wait to take out a private student loan, you could consider working to improve your credit before you apply to get a better interest rate in the future. There are several ways to potentially boost your credit, such as making on-time payments on all of your bills or becoming an authorized user on a credit card account owned by someone you trust.
• Apply with a cosigner: Having a creditworthy cosigner can improve your chances of getting approved for a private student loan if you have bad credit. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.

Check Out: Taking Out Student Loans Without a Cosigner

COVID-19 and student loans

Here’s how the COVID-19 pandemic has affected student loans:

• Federal student loans: Due to the pandemic, federal student loan payments and interest accrual have been suspended by the CARES Act until Dec. 31, 2022. If you need to take out a new federal loan, the process has remained the same.
• Private student loans: Unfortunately, private student loans don’t qualify for CARES Act benefits. However, many private lenders are offering various forms of assistance to borrowers impacted by the pandemic, such as deferment and forbearance options — be sure to reach out to your lender to see what options might be available to you. Like with federal loans, the process for taking out a new private student loan during the COVID-19 pandemic has remained unchanged.

Learn More: Student Loan Requirements: How to Qualify for a Student Loan

How the new federal loan rates impact existing student loans

Here’s how you can expect the new federal student loan rates to affect existing loans:

• Fixed-rate loans: If you have fixed-rate federal loans, your rates will remain the same over the life of your loan. This also means your payments won’t ever change unless you sign up for a different repayment plan.
• Variable-rate loans: While new federal student loans come with fixed rates, you might have variable-rate federal loans if you borrowed before June 1, 2006. Unlike fixed rates, variable rates can fluctuate depending on market conditions — which means your rate might change in the future. If you have questions regarding your variable rate, you’ll need to contact your loan servicer for details.

If you have excellent credit, you might be able to get a lower interest rate by refinancing your federal student loans. This could save you money on interest and even help you pay off your loan faster. You also have the option to switch from a variable rate to a fixed rate — or vice versa — through refinancing.

However, while you can refinance both federal and private student loans, refinancing federal student loans will cost you your federal benefits and protections — so be sure to weigh your options carefully.

Keep in mind: Refinancing federal student loans into a private loan will also make you ineligible for the administrative forbearance under the CARES Act due to the pandemic.

If you’re thinking about refinancing federal loans, it’s likely a good idea to wait until after Dec. 31, 2022.

Use our calculator below to see how much you can save by refinancing your student loans.

Step 1. Enter your loan balance

Loan balance ? Enter the remaining amount of the loans you’d like to refinance $

Step 2. Enter current loan information

Interest rate ? Enter the average annual interest rate of the loans you’d like to refinance %

Monthly payment ? Enter the monthly amount you currently pay on your loans (or enter remaining term) $

Remaining term ? Enter the amount of time left to repay your loan (or enter monthly payment) years

Step 3. Enter your new loan information to start calculating your savings

Interest rate ? Enter an estimated new interest rate. %

Monthly payment ? Enter the monthly amount to pay on your new loan (or enter new loan term) $

New loan term ? Enter the amount of time you have to repay your loan (or enter monthly payment) years

Lifetime Savings Increased Lifetime Cost

Monthly Savings Increased Monthly Cost

If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $.

Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won’t affect your credit score.

Keep Reading: Independent vs. Dependent Student: Which Are You?

About the author

Taylor Medine

Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

Read More