Student loan interest rates in November 2022 Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure

Advertiser Disclosure

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

Student loan interest rates in November 2022

Jennifer Calonia is an L.A.-based writer and editor. She’s covered topics like debt, saving money and credit cards. You can find her work on Business Insider, Forbes and more. Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans. Mark Kantrowitz is an expert on student financial aid, the FAFSA, scholarships, 529 plans, education tax benefits and student loans.

Bankrate logo

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo

The Bankrate promise

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logo

Editorial integrity

Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

Key Principles

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Editorial Independence

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

How we make money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Student loans can be useful for filling financial gaps when paying for higher education expenses, but the money isn't free. Student loan interest rates determine how much money you'll ultimately owe. It's important to know what your interest rate is and how it affects your loans. Federal student loans for undergraduates currently have an interest rate of 4.99 percent for the 2022-23 school year, while graduate students have interest rates of 6.54 percent or 7.54 percent for unsubsidized loans or Direct PLUS loans, respectively. Private student loan interest rates range from 2 percent to 14 percent and are based primarily on your credit score. Close X

Current student loan interest rates

About of student loan debt is federal, with interest rates ranging from 4.99 percent to 7.54 percent. Average , on the other hand, can range from 3.22 percent to 14.96 percent fixed and 2.52 percent to 12.99 percent variable. While federal student loan rates are the same for every borrower, private student loan rates range based on the lender, the type of interest rate (fixed or variable) and the borrower's credit score. Caret Down Federal student loan interest rates Private student loan rates (graduate and undergraduate) Refinance student loan interest rates Average student loan rates LOAN TYPE BORROWER FIXED INTEREST RATE LOAN FEE Direct Subsidized Loans and Direct Unsubsidized Loans Undergraduate students 4.99% 1.057% for loans first disbursed on or after Oct. 1, 2020, and before Oct. 1, 2023 Direct Unsubsidized Loans Graduate or professional students 6.54% 1.057% for loans first disbursed on or after Oct. 1, 2020, and before Oct. 1, 2023 Direct PLUS Loans Parents and graduate or professional students 7.54% 4.228% for loans first disbursed on or after Oct. 1, 2020, and before Oct. 1, 2023 LENDER FIXED APR* VARIABLE APR* 3.99% to 14.96% 2.99% to 14.86% 3.99% to 12.78% 3.58% to 12.28% 3.99% to 10.32% 4.36% to 10.24% 3.99% to 13.50% 3.75% to 12.13% LENDER FIXED APR* VARIABLE APR* 4.49% to 7.99% 3.69% to 7.99% 3.99% to 8.99% 3.24% to 7.99% 3.99% to 10.68% 3.27% to 6.87% 3.99% to 8.94% 3.99% to 8.94% LOAN FIRST DISBURSED UNDERGRADUATE DIRECT SUBSIDIZED LOANS UNDERGRADUATE DIRECT UNSUBSIDIZED LOANS GRADUATE OR PROFESSIONAL DIRECT UNSUBSIDIZED LOANS DIRECT PLUS LOANS July 1, 2022 – June 30, 2023 4.99% 4.99% 6.54% 7.54% July 1, 2021 – June 30, 2022 3.73% 3.73% 5.28% 6.28% July 1, 2020 – June 30, 2021 2.75% 2.75% 4.30% 5.30% July 1, 2019 – June 30, 2020 4.53% 4.53% 6.08% 7.08% July 1, 2018 – June 30, 2019 5.05% 5.05% 6.60% 7.60% July 1, 2017 – June 30, 2018 4.45% 4.45% 6.00% 7.00% July 1, 2016 – June 30, 2017 3.76% 3.76% 5.31% 6.31% July 1, 2015 – June 30, 2016 4.29% 4.29% 5.84% 6.84% July 1, 2014 – June 30, 2015 4.66% 4.66% 6.21% 7.21% July 1, 2013 – June 30, 2014 3.86% 3.86% 5.41% 6.41% July 1, 2012 – June 30, 2013 3.40% 6.80% 6.80% 7.90%

How are student loan interest rates set

Federal student loan interest rates

Each spring, Congress sets federal student loan interest rates based on the high yield of the last 10-year Treasury note auction in May. New rates apply to student loans disbursed from July 1 to June 30 of the following year. Federal loans are fixed, meaning that the rate will not fluctuate for the life of the loan. The interest rate you receive on a federal student loan is not determined by your credit score or financial history. . For federal subsidized loans, the government pays your interest charges for you while you're in school at least half time, during your grace period and while you're in deferment. The amount you'll owe once you start paying includes only your original principal balance, loan fees and interest accrued moving forward. With federal unsubsidized loans, interest charges start accruing immediately after funds are disbursed. If you choose to hold off on making loan payments until after graduation or your six-month grace period, the accumulated student loan interest gets added to your principal balance when the loan enters repayment.

Private student loan interest rates

Private student loans are offered by banks, credit unions and online lenders. Interest rates vary from lender to lender. Many private student loan lenders provide both fixed and variable rate. Your interest rate could fluctuate and may increase over the life of the loan if you choose a variable-rate option. Most student loan lenders set rate ranges based on the Libor or the Secured Overnight Financing Rate indices. However, while rates are tied to this benchmark, private lenders also typically evaluate you or your co-signer's credit score, income and financial history to determine your interest rate. Generally, the better your financial health and credit score, the lower your interest rates will be. In order to access this information, many lenders will run a , which can knock your credit score down a few points. However, you can usually prequalify and get a preview of your rates and terms with only a soft credit check. To make loans more accessible, some lenders also factor in your work and academic history, potential future earnings and more.

How has the coronavirus affected student loan interest rates

When the coronavirus hit in March 2020 and the Federal Reserve Board cut interest rates, student loan rates plummeted. Federal student loan rates were at their lowest point in years, and borrowers could take out private student loans or refinance existing loans with rock-bottom rates as well. Also, federal student loan interest is waived through Dec. 31, 2022.

How will student loan rates change in 2022

The Biden presidency s affect on student loans

While the president has no say in student loan interest rates, President Joe Biden has been seeking other ways to for students and reduce student debt burden. In August 2022, he to forgive up to $20,000 in federal student loan debt for millions of eligible students. Individuals who made less than $125,000 in 2020 or 2021 and married people who file taxes jointly and made less than $250,000 are eligible for up to $10,000 in federal debt relief each. Up to $20,000 will be forgiven if you meet income requirements and you've ever received a Pell Grant. Borrowers have until Dec. 31, 2023 to apply on the website. Unfortunately, this one-time forgiveness does not extend to private student loans (with the exception of FFEL or Perkins Loans consolidated before Sept. 29, 2022). Additionally, it only applies to loans taken out before June 30, 2022.

How to calculate student loan interest

can help you determine your monthly budget. To calculate how much interest you pay each month, use the following steps: Find your daily interest rate. Divide your annual interest rate by 365. Determine your daily interest accrual charge. Multiply your daily interest rate by your remaining principal balance. Calculate your monthly payment. Multiply that daily interest accrual by the number of days in your billing cycle. Let's say you're charged 5 percent interest on your $10,000 loan every month. Here's what those steps look like: 0.05 (annual interest rate) / 365 = 0.000137 $10,000 (principal balance) x 0.000137 = 1.37 1.37 x 30 (number of days in billing cycle) = $41.10 In this scenario, you'll pay $41.10 in interest your first month. As you pay down the principal balance, less of your monthly payment will go toward interest.

The difference between subsidized and unsubsidized student loans

Direct Unsubsidized Loans: Who pays interest costs? The borrower. What's the lifetime maximum limit? $31,000 for dependent undergraduate students, $57,500 for independent undergraduate students and $138,500 for most graduate or professional students. Do you need to demonstrate financial need? No. Who can borrow? Undergraduate students, graduate students and professional degree students. Are there extra costs involved? 1.057 percent fee for loans disbursed on or after Oct. 1, 2020, and before Oct. 1, 2023. Direct Subsidized Loans: Who pays interest costs? The U.S. Department of Education pays interest while the student is enrolled in school at least half time, during the six-month postgraduation grace period and during deferment. The borrower pays interest during regular repayment periods. What's the lifetime maximum limit? $23,000. Do you need to demonstrate financial need? Yes. Who can borrow? Undergraduate students. Are there extra costs involved? 1.057 percent fee for loans disbursed on or after Oct. 1, 2020, and before Oct. 1, 2023.

The difference between fixed and variable rates

Student loan interest rates can be either fixed or variable. Fixed interest rates are a type of interest rate that doesn't change over your loan term, so you'll know upfront how much your total cost to borrow will be and what your monthly payments will look like. All federal loans have fixed rates. Variable interest rates are a type of interest rate that changes based on market conditions, so your monthly payment may increase or decrease periodically. These changes typically happen on a monthly, quarterly or annual basis.

How can I reduce my student loan interest rate

If you're looking to , you have a few options: before applying: If you're applying for a loan from a private lender, you'll likely go through a credit check. The better your credit score, the lower the rate you'll receive. Before applying, check your credit reports for errors and avoid applying for other forms of credit. Apply with a co-signer: Many student loan borrowers don't have much credit to their name. If this is your situation, you may want to add a co-signer to your loan. Adding a co-signer with good credit will improve your creditworthiness and could help you get lower rates. Some lenders require a co-signer, especially for undergraduate borrowers. Choose a variable rate: It's a gamble, but choosing a variable rate over a fixed one could cause your interest rate to drop during economic downturns. However, keep in mind that you also risk your interest rate rising. Refinance old loans: If you took out a student loan when interest rates were high, you may be able to refinance into a lower interest rate. This is especially true if you have a better credit score now than when you first applied. Just remember that if you refinance a federal student loan, you'll lose benefits like coronavirus forbearance and income-driven repayment plans.

How to pay off student loan interest

Student loan interest can add significantly to the overall cost of your loan - often thousands of dollars. To minimize how much you pay in interest, you can: Opt for interest-only payments while in school. Though you're not required to make payments while you're in school, many lenders offer the option of making interest-only payments. This prevents interest accrual. Some also allow you to make small payments against the principal. Make biweekly payments. If you can afford it, try making half-payments on your loans every two weeks instead of one full payment every month. This helps you and puts more of your payment toward the principal rather than interest. Put any extra funds toward your student loans. If you receive a tax refund or another one-time sum of money, send it to your lender and specify that you want to put it toward your principal amount. This is a good way to decrease your loan amount and the total amount of time you spend paying your loans, which cuts down on how much interest you pay overall.

Next steps

If you're considering , the best way to find a good interest rate is to shop around with multiple lenders. It's usually best to start your search with federal student loans, but are a good way to supplement. While you will be charged higher interest rates if your credit score needs work, there are lenders that cater specifically to .

Ready to compare rates from top lenders

Learn more