May 30, 2024

January 9, 2024—10-Year Loan Rates Move Down – Forbes Advisor

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Interest rates on refinanced student loans are mixed..

According to, during the week of January 1, the average fixed interest rate on a 10-year refinance loan was 7.68%. It was 6.47% on a five-year variable-rate loan. That’s for borrowers with a credit score of 720 or higher who prequalified on’s student loan marketplace.

These rates are accurate as of January 1, 2024.

Related:  Best Student Loan Refinance Lenders

Fixed-Rate Loans

Last week, the average fixed rate on 10-year refinance loans fell by 0.04 percentage points to 7.68%. The week before, the average stood at 7.72%.

At this time last year, the average fixed rate on a 10-year refinance loan was 6.28%, or 1.40 percentage points lower than today’s rate. That means that borrowers who refinance now have the chance to lock in a new rate that’s higher than what they would have received this time last year.

Let’s say you refinanced $20,000 in student loans at today’s average fixed rate. You’d pay around $239 per month and approximately $8,714 in total interest over 10 years, according to Forbes Advisor’s student loan calculator.

Variable-Rate Loans

Last week, rates on variable five-year refinance student loans moved up, reaching 6.47% from 6.38% the week before.

In contrast to fixed rates, variable interest rates fluctuate over the course of a loan term according to market conditions and the financial index they’re tied to. Many refinance lenders recalculate rates monthly for borrowers with variable-rate loans, but they typically limit how high the rate can go—to 18%, for instance.

Let’s say you refinanced an existing $20,000 loan to a five-year loan with a variable interest rate of 6.47%. You’d pay about $391 on average per month. You’d pay approximately $3,463 in total interest over the life of the loan. Keep in mind that since the interest is variable, it could fluctuate up or down from month to month.

Related: Should You Refinance Student Loans?

When to Refinance Student Loans

Most lenders require borrowers to complete their degree before refinancing—though not all—so in most cases, wait to refinance until you’ve graduated. You’ll also need a good or excellent credit score and stable income in order to access the lowest interest rates.

Asking a relative or friend to be a co-signer is one option for those who don’t have strong enough credit or income to qualify for a refinance loan. Alternatively, you could wait until your credit and income are stronger. If you decide to use a co-signer, make sure they understand they’ll be responsible for any payments you can’t make. The loan will also appear on their credit report.

How To Find the Best Student Loan Refinance Rates?

The best student loan refinance rates typically go to borrowers with strong credit. To get the best rate, take some time to improve your credit before you apply. Paying down debts, reducing your credit utilization ratio and disputing any errors on your credit report can boost your credit.

Another option is applying for student loan refinance with a co-signer. If you can add a creditworthy co-signer to your application, you might qualify for a better interest rate. However, remember that your co-signer will share responsibility for the loan.

Finally, compare offers from multiple lenders. Each lender sets its own rates and terms, so shopping around can help you find a student loan refinance offer with the best rate.

Refinancing Student Loans: What Else to Consider

When you refinance federal student loans to a private loan means you’ll lose access to some federal loan benefits. You’ll no longer have access to features like:

If you’re thinking about refinancing federal student loans, first make sure you likely won’t need to use any of these programs. This may be the case if your income is stable and you plan to quickly pay off a refinance loan. You always have the option to refinance only your private loans, or only a portion of your federal loans. Since federal loans’ fixed interest rates are typically quite low, you may also decide refinancing wouldn’t lead to substantial savings.

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