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. 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: 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: 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: Graduate and professional: 6.54% Graduate and professional: 5.28% Graduate and professional: 4.30% Graduate and professional: 6.08% 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? Check Personalized Rates Checking rates won’t affect your credit score. Learn More:
Subsidized vs. Unsubsidized Student Loans: Know the Difference 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 Here are the interest rates you can expect on private student loans from Credible’s partner lenders: 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: 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. 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 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 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
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
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
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 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
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 Trustpilot Learn More: When You Should Apply for a Student Loan 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: Check Out: Taking Out Student Loans Without a Cosigner Here’s how the
COVID-19 pandemic has affected student loans: Learn More:
Student Loan Requirements: How to Qualify for a Student Loan Here’s how you can expect the new federal student loan rates to affect existing loans: 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.
Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."New federal rates for the 2022-2023 school year
Academic yearDirect Subsidized LoansDirect Unsubsidized LoansDirect PLUS loans 2022-2023
4.99%
Undergrad: 4.99% 7.54%
2021-22
3.73%
Undergrad: 3.73% 6.28%
2020-21
2.75%
Undergrad: 2.75% 5.30%
2019-20
4.53%
Undergrad: 4.53% 7.08%
Compare rates without affecting your credit score. 100% free!
How federal rate changes affect your student loans
Private student loan interest rates for the
2022-2023 school year
LenderFixed Rates From (APR)
Variable Rates From (APR)Loan amountsLoan terms (years) 4.12%+10
3.04%+10
$2,001 to $400,000
7 to 20
4.25%+1
3.4%+
$1,000 to $350,000 (depending on degree)
5, 10, 15
3.99%+2,3
2.99%+2,3
$1,000 up to 100% of the school-certified cost of attendance
5, 8, 10, 15
3.65%+
3.53%+
$1,000 to $99,999 annually
($180,000 aggregate limit)
7, 10, 15
6.02%+7
5.34%+7
$1,000 to $200,000
7, 10, 15
5.25%+8
4.38%+8
$1,001 up to 100% of school certified cost of attendance
5, 10, 15
4.89%+
N/A
$1,500 up to school’s certified cost of attendance less aid
15
3.75% - 13.72% APR9
4.0% - 14.34% APR9
$1,000 up to 100% of school-certified cost of attendance
10, 15
Compare private student loan rates without affecting
your credit score. 100% free!Compare Private Loans Now
How interest is calculated on private student loans
COVID-19 and student loans
How the new federal loan rates impact existing student loans
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.
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