What are the current interest rates for student loans?
You typically need a credit score in at least the high 600s to qualify, and average interest rates for a refinance range from around 5% to more than 9%. Consider private student loan consolidation if you have: Existing private student loans.
| LOAN TYPE | BORROWER | FIXED INTEREST RATE |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | Undergraduate students | 5.50% |
| Direct Unsubsidized Loans | Graduate or professional students | 7.05% |
| Direct PLUS Loans | Parents and graduate or professional students | 8.05% |
| Product | Interest Rate | APR |
|---|---|---|
| 30-year fixed-rate | 7.223% | 7.310% |
| 20-year fixed-rate | 7.100% | 7.207% |
| 15-year fixed-rate | 6.391% | 6.540% |
| 10-year fixed-rate | 6.155% | 6.346% |
You typically need a credit score in at least the high 600s to qualify, and average interest rates for a refinance range from around 5% to more than 9%. Consider private student loan consolidation if you have: Existing private student loans.
For Direct PLUS Loans first disbursed on or after July 1, 2023, and before July 1, 2024, the interest rate is 8.05%. This is a fixed interest rate for the life of the loan.
| Overall Average Rate | Average Low Rate | |
|---|---|---|
| This Week | 9.02% | 6.49% |
| Last Week | 9.02% | 6.49% |
But after the 2023 rate hikes, student loan interest rates rose across the board. Private student loan rates now range from 4.43% to 16.99%, while current federal interest rates are as follows: 5.50% for Direct Subsidized and Unsubsidized Loans for undergraduates.
- BrioDirect High Yield Savings Account: 5.35% APY.
- Ivy Bank High-Yield Savings Account: 5.30% APY.
- TAB Bank High Yield Savings: 5.27% APY.
- UFB Secure Savings: Up to 5.25% APY.
- EverBank Performanceâ„ Savings: 5.15% APY.
- Bask Interest Savings Account: 5.10% APY.
| Account Name | APY (Annual Percentage Yield) Accurate as of 4/19/2024 | Minimum Account Opening Balance |
|---|---|---|
| Western Alliance Bank High-Yield Savings Premier | 5.36% | $500 |
| CloudBank 247 High Yield Savings Account | 5.26% | $1 |
| UFB Secure Savings | 5.25% | $0 |
| EverBank Performanceâ„ Savings | 5.15% | $0 |
For undergraduate students, an interest rate below 5% is great. For graduate students, a good interest rate may be below 7%. For private loans, student loan interest rates vary greatly. If you're thinking of taking out a private student loan, it is important to know whether the loans are fixed or variable.
What degree has the most debt?
- Culinary Arts and Related Services ($28,586)
- Human Services, General ($28,586)
- Education, General ($28,001)
- Clinical, Counseling, and Applied Psychology ($27,439)
- Literature ($26,987)
- Natural Sciences ($26,912)
- Physical Sciences ($26,635)
- Music ($26,600)
Research from EducationData.org shows that almost 45.3 million Americans hold an average federal student loan debt balance of $37,338. Combined, student loan debt in the U.S. adds up to nearly $2 trillion. According to the same data, the average student loan monthly payment is $503.
Loan consolidation can simplify your monthly payments by combining multiple loans into one loan. After consolidating your loans, you will only have to make a payment to one student loan servicer. This may make it easier to keep track of your student loans and help manage your finances.
If your loans are subsidized, you are not responsible for paying the interest that accrues while you're in school. If your loans are unsubsidized, you're responsible for all the interest that accrues, even while you're in school.
Repayment Plan
A major determinant of how long it takes to pay off student loans is the type of payment plan you choose. For federal student loans, repayment options start at 10 years and can be as long as 30 years. For private student loans, repayment terms vary depending on the lender's policies and offerings.
Secured loans, by comparison, are backed by something of value, such as a car or house, which can be seized if you default. But lenders can't seize a degree. So student loan interest rates are typically higher than secured loan rates because the lender's risk is higher.
Borrowers with variable-rate student loans from private lenders may see their interest rate change when the federal funds rate changes. College students who take out federal student loans after the Fed increases interest rates will experience higher borrowing costs.
| Lender | Variable APR | |
|---|---|---|
| View Disclosure | SoFi 4.7 | 5.99% to 14.70% with autopay |
| View Disclosure | PNC 4.2 | As low as 8.44% with autopay* |
| View Disclosure | Education Loan Finance 4.5 | 4.98% to 12.79% |
| View Disclosure | Ascent Funding 4.6 | 6.22% to 16.08% with autopay |
- Know what you owe. ...
- See if your loans fit into your budget and pay schedule. ...
- Make sure your federal repayment plan is the best one for you. ...
- Set up direct debit (aka autopay) for 0.25% off your interest rate. ...
- Stay in touch with your servicer. ...
- Keep good records.
Student loan interest rates FAQs
As of March 2024, the best interest rates on private student loans were around 4% for fixed-rate loans and 5% for variable-rate loans. For federal student loans, rates in recent years have ranged from 2.75% to 5.50% for undergraduate borrowers.
Will student loan rates go up in 2024?
Federal loan rates for the 2023-2024 academic year
Undergraduate borrowers qualify for the lowest rates at 5.50% for the 2023-2024 academic year. These fixed rates influence the size of your monthly payments and total costs over the life of the loan.
As of April 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
The best places to save money include high-yield savings accounts, high-yield checking accounts, CDs, money market accounts, treasury bills and savings bonds.
- The highest the federal funds rate has ever soared was to 20% in December 1980. ...
- The Federal Open Market Committee (FOMC) meets eight times each year to recommend policies to either stimulate or cool the economy to bring it in line with a target range of 2% growth annually.
| Top Nationwide Rate (APY) | Balance at Maturity | |
|---|---|---|
| 6 months | 5.76% | $ 10,288 |
| 1 year | 6.18% | $ 10,618 |
| 18 months | 5.80% | $ 10,887 |
| 2 year | 5.60% | $ 11,151 |
