As of June 2025, the best interest rates on private student loans started around 3.19% for fixed-rate loans and between 4% and 5% for variable-rate loans. For federal student loans, rates in recent years have ranged from 2.75% to 6.54% for undergraduate borrowers. For the 2025-2026 school year, rates on undergraduate loans are set at 6.39%.

To lower your student loan interest rate, your options include signing up for autopay, consolidating or refinancing your loans, and improving your credit score.

Monthly payments could drop, but most borrowers will pay more in interest over time. What to expect now that President Trump's "Big Beautiful Bill" is law.

For example, let’s say you owe $28,950 in student loans with an 8% interest rate. If you could refinance to a 6% rate, you’d save $3,059 in interest charges over a 10-year repayment term.

Unlike federal student loan interest rates, rates on private student loans vary depending on the lender and your financial profile. As of August 2023, average rates on private student loans range ...

That means borrowers who need help next year will have to take out a new loan at a new interest rate. Federal student loan rates change every May, based on the U.S. Treasury Department's auction ...

The Department of Education's announcement gives borrowers just weeks to consider their options before interest begins accumulating on their loans.