The federal student loan interest rate for undergraduates is 4.53% for the 2019-20 school year. Federal rates for unsubsidized graduate student loans and parent loans are higher — 6.08% and 7.08%, respectively.
Private student loan interest rates can sometimes be lower than federal rates, but approval for the lowest rates requires excellent credit. If you have good credit, you may be able to refinance existing student loans to get a lower rate.
Current student loan interest rates
| Refinance student loans | |||
| Fixed | 3.14% to 8.82% | ||
| Variable | 3.14% to 9.02% | ||
| Private student loans | |||
| Fixed | 4.21% to 13.12% | ||
| Variable | 2.75% to 12.54% | ||
| Federal student loans (fixed) | |||
| Undergraduate | 4.53% | ||
| Graduate | 7.08% | ||
| PLUS | 7.08% | ||
Rates updated monthly.
Federal student loan interest rates decreased for the 2019-20 school year and apply to loans disbursed between July 1, 2019, and July 1, 2020. The interest rate for all new federal direct undergraduate student loans decreased to 4.53%, down from 5.05% in 2018-19. Unsubsidized direct graduate student loan rates decreased to 6.08%, down from 6.60%. Rates for PLUS loans, which are for graduate students and parents, dropped to 7.08%, down from 7.60%.
Current private student loan interest rates, updated monthly:
| Lender | APR ranges* | Visit |
|---|---|---|
 | Fixed: 4.21% - 13.12%6 Variable: 3.22% - 12.54%6 Includes rates for Ascent's Tuition and Independent loans. Includes autopay discount of 0.25%. | |
 | Fixed: 4.301% - 11.05%3 Variable: 2.99% - 10.05%3 Includes rates for undergraduate and graduate loans. | |
 | Fixed: 4.54% - 11.98%2 Variable: 2.84% - 10.97%2 Includes rates for undergraduate and graduate loans. Includes autopay discount of 0.25%. | |
 | Fixed: 4.4% - 12.19%1 Variable: 2.83% - 11.01%1 Includes rates for undergraduate loans. Lowest rates shown include a loyalty discount and a 0.25% interest rate reduction for automatic payment. | |
 | Fixed: 4.49% - 12.78% Variable: 2.79% - 11.44% Includes rates for undergraduate loans. Lowest rates shown include a 0.25% interest rate reduction for automatic payment. | |
 | Fixed: 4.74% - 11.35%4 Variable: 2.75% - 10.22%4 Includes rates for undergraduate loans. Lowest rates shown include the auto debit discount. | |
 | Fixed: 4.74% - 12.49%5 Variable: 2.95% - 11.62%5 Includes rates for undergraduate and graduate loans. Lowest rates shown include an interest-only repayment discount and a 0.25% interest rate reduction for Auto Debit Reward. | |
 | Fixed: 4.25% - 8.00% Variable: 4.35% - 7.78% Rates are for parent loans only — SoFi doesn't offer undergraduate and graduate loans. |
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Current student loan refinancing rates, updated monthly:
| Lender | APR | Get started |
|---|---|---|
 | Fixed: 3.45% - 6.99% Variable: 1.99% - 6.89% | |
 | Fixed: 3.46% - 7.36% Variable: 2.31% - 7.36% | |
 | Fixed: 3.21% - 6.45% Variable: 2.02% - 6.3% | |
 | Fixed: 3.14% - 6.69% Variable: 2.39% - 6.01% | |
 | Fixed: 3.49% - 7.75% Variable: 1.9% - 8.65% | |
 | Fixed: 3.5% - 7.02% Variable: 1.99% - 6.65% | |
 | Fixed: 3.48% - 6.03% Variable: 2.32% - 7.06% | |
 | Fixed: 3.45% - 9.02% Variable: 2.15% - 8.82% | |
Average student loan interest rate
The average student loan interest rate is 5.8% among all households with student debt, according to a 2017 report by New America, a nonprofit, nonpartisan think tank. That includes both federal and private student loans — about 90% of all student debt is federal.
The average student loan interest rate is 5.8% among all households with student debt.
With a 5.8% interest rate on $30,000 of student loans, a borrower would pay about $9,600 in interest throughout 10 years.
The average student loan interest rate is higher among some groups, according to the report. For instance, the average rate is 6.3% among households where the borrower didn’t complete a college degree, and 6.6% among households with incomes less than $24,000.
If you have multiple student loans with different rates, the weighted average interest rate is the rate you’ll have if you consolidate the loans through the federal government. Federal consolidation won’t lower your average interest rate, but refinancing with a private lender could.
» MORE: 7 ways to get the lowest student loan interest rate
Student loan interest rate calculator
How student loan interest rates work
Student loan interest rates work differently, depending on whether the loan is federal or private. For federal loans, every borrower taking out the same type of federal loan in a given year has the same interest rate. For private loans, borrowers with higher credit scores generally qualify for lower rates and borrowers with lower credit scores get higher rates.
Federal student loans:
- Congress sets interest rates yearly based on the 10-year Treasury note
- Most have fees charged as a percentage of the total loan amount
- Rates are fixed for the life of the loan
Private student loans:
- Interest rates are typically credit-based
- Most private lenders don’t charge origination fees
- Borrowers can choose either a fixed or variable interest rate
- Variable rates are subject to change monthly or quarterly
