This week's student loan refinancing rates: May 17, 2022 | Rates have skyrocketed over the past 6 months

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Some interest rates for refinanced student loans dropped last week, while others held steady, according to Credible Student Loans. But like interest rates on many types of loans, student loan rates have jumped since the end of 2021 overall.

Interest rates on private student loans are generally in lockstep with a variable index rate and borrowers' credit scores. Mark Kantrowitz, president of PrivateStudentLoans.guru, says lenders may wait to change rates significantly until they see where federal loan interest rates are at in July. This could help companies decide what interest rates to charge so they can have a better rate than Parent PLUS loans, for example.

Kantrowitz believes rates will start going up in June. 

5-year variable student loan refinancing rates

The average refinance rate on 5-year variable undergraduate student loans has dropped significantly since two weeks ago and now sits at 3.46%. It's now comparable to the rate of 3.29% one year ago.

On the other hand, the variable refinance rates on 5-year graduate loans have spiked by almost 2% compared to two weeks ago.

	Undergraduate	Graduate
This past week	3.46%	4.56%
Two weeks ago	5.17%	2.57%
Six months ago	2.77%	2.65%
One year ago	3.29%	2.92%

10-year fixed student loan refinancing rates

Refinance rates on 10-year undergraduate fixed student loans haven't changed much since two weeks ago, but they've spiked over the last six months.

Graduate loan rates are just a little higher than two weeks ago. But like undergraduate rates, they've jumped since November.

	Undergraduate	Graduate
This past week	5.13%	4.70%
Two weeks ago	5.11%	4.53%
Six months ago	3.80%	3.35%
One year ago	3.90%	3.50%

Student loan interest rates by credit score

Your credit score has a substantial effect on the rate you'll receive when you refinance. Usually, the higher your credit score, the lower rate you'll receive. Below, we've listed the 10-year fixed student loan rates by credit score:

	Below 680	680-719	720-779	780+	Average Rate
This past week	5.56%	5.33%	5.12%	4.33%	5.01%
Two weeks ago	6.06%	5.51%	4.75%	4.29%	4.91%

Why refinance a student loan?

You may qualify for a lower rate when you refinance your student loans. You will also be able to change from a variable-rate loan to a fixed-rate loan, or switch up your term length. By picking a different term length, you might be able to spread out payments over a longer amount of time for smaller monthly payments, though you'll cough up more in total interest.  

How do I know if I'll get approved to refinance my student loan?

Generally the best barometer of loan approval is your credit score and history. Lenders like to see that you have a track record of reliably paying back your loans on time, so the better your credit score, the more likely you are to qualify for a low rate as well. Additionally, most lenders will run a soft credit check when you apply (which doesn't impact your credit score), so you can find out from an individual lender if you'll get approved at no harm to you.

How do I choose between a fixed-rate and variable-rate loan?

Both types of loans make sense for different borrowers. 

A fixed-rate student loan has a set interest rate for the life of your loan. The rate you get when you take out your loan is the rate the lender will charge you until you pay back your loan in full.

A variable-rate loan has an interest rate that the lender will change regularly during your loan's term. Lenders usually tie this rate to specific market benchmarks that the federal funds rate often has an impact on. Variable rates may start lower than fixed rates, but could rise significantly over the life of your loan.