Student loan refinancing rates for the week: July 12, 2022
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Average interest rates on 5-year refinanced graduate student loans decreased two weeks ago, and 5-year undergraduate loans remained the same, according to Credibility. Interest rates on 10-year loans have not changed significantly in two weeks.
However, rates may rise significantly in the future. For the 2022-23 school year, federal student loan rates will rise by the highest amount since the 2005-06 year. These new rates won’t directly affect private student loan rates, but private rates may increase as they don’t have to stay low in line with federal loan rates.
5-Year Variable Student Loan Refinance Rates
Refinancing rates on 5-year variable rate college student loans remained the same last week, but were up about 1% from six months ago.
Refinancing rates on 5-year variable graduate loans decreased by 43 basis points.
10-Year Fixed Student Loan Refinancing Rates
10-year college student loan refinancing rates are slightly lower than they were two weeks ago. Bachelor’s rates fell by 20 basis points, while graduate rates increased by three basis points. Rates are up about 2% from last year.
Student loan interest rates by credit score
Greatly affect the prices you get. You will often get a better rate the higher your credit score. Below, we’ve listed 10-year fixed student loan rates by credit score:
Why refinance a student loan?
You may qualify for a better rate when you refinance your student loans. You’ll also be able to change from a fixed-rate loan to a variable-rate loan, or switch your tenure. By choosing a different term length, you may be able to spread the costs over an extended period for smaller monthly payments, although you’ll be paying more overall benefits.
How to refinance a student loan
Start the refinancing process by looking at your terms with different lenders. Review the offers and find out which price and length of time is best for you. When you check your rates, lenders usually do a soft credit check, which doesn’t hurt your credit score.
You will need to apply for refinancing through a private student loan lender, as you cannot refinance a student loan through the federal government.
Once you have selected a company, you will fill out its application and submit documents verifying your finances and identity. After the lender makes its final offer, you will need to sign the agreement and accept the terms. Then your new lender will pay off your existing loan and you’re ready to work with a new loan.
How do I know if I will be approved to refinance my student loan?
In general, the best measure of loan approval is your credit score and history. Lenders like to see that you have a proven track record of reliably paying off your loans on time, so the better your credit score, the more likely you are to qualify for a lower rate as well. In addition, most lenders will conduct a facilitated credit check upon application (which does not affect your credit score), so you can see if you will get approved without any harm to you from an individual lender.
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