This week’s student loan refinancing rates: June 21, 2022 | Most rates drop from two weeks ago

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Average interest rates on most refinanced student loans have decreased since two weeks ago, according to Credible Student Loans. Only 10-year fixed undergraduate rates have gone up. Rates on 10-year graduate loans have dropped a small amount, and rates on all five-year loans are down.

This upcoming school year, federal student loan rates will increase by the most significant amount since the 2005-06 year. These new rates won’t directly impact private student loan rates, but private rates may go up as they don’t have to remain as low to compete with federal loan rates.

Laurel Taylor, CEO and founder of student debt fintech company FutureFuel.io, says that over the last 20 years, it’s been uncommon for rates to rise so significantly over such a short period of time. However, Taylor says borrowers shouldn’t be too worried about the jump in federal rates. 

“The monthly payment impact is relatively minor, adding up to less than $5 per month and less than $400 over the standard 10-year repayment on a typical annual borrowing of $5,500 for an undergraduate,” Taylor says.

Note: Federal loans are almost always a better option than private loans. They come with set interest rates that are usually lower than private lenders and your credit history doesn’t factor into lending decisions. Additionally, they have many perks that private lenders don’t offer, including the current repayment pause.

5-year variable student loan refinancing rates

Refinance rates on 5-year variable-rate undergraduate student loans …read more

Source:: Businessinsider

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