Updated March 10, 2026
Today's Best Student Loan Rates
Federal and private student loan rates for undergraduate and graduate students.
Federal Direct (Undergrad)
5.50%
Federal Direct (Grad)
7.05%
Private Fixed
6.50%
Private Variable
5.75%
Rate Trends
Federal Direct (Undergrad)
Federal Direct (Grad)
Private Fixed
Private Variable
Lender Comparison
Student Loan Rates — Lender Comparison
| Lender | Rate ↑ | APR ⇅ | |
|---|---|---|---|
SoFiFeatured | 4.99% | 5.24% | Apply Now |
Splash FinancialFeatured | 4.99% | 5.24% | Apply Now |
EarnestFeatured | 5.19% | 5.44% | Apply Now |
Citizens Bank | 5.39% | 5.64% | Apply Now |
College Ave | 5.49% | 5.74% | Apply Now |
Sallie Mae | 5.99% | 6.24% | Apply Now |
Understanding Student Loan Rates
What Affects Student Loan Rates
Federal student loan rates are set annually by Congress based on the 10-year Treasury note yield, with a fixed margin added. Private student loan rates depend on the borrower's (or cosigner's) credit score, income, school, and degree program. Market conditions and lender competition also influence private rates.
Fixed vs Variable Rates
Federal student loans always have fixed rates. Private student loans offer both fixed and variable options. Variable rates start lower (often 1-2% below fixed) but can rise significantly over a 10-20 year repayment period. Variable rates are best for borrowers who can repay quickly; fixed rates provide long-term certainty.
Federal vs Private Loan Differences
Federal loans offer income-driven repayment plans, Public Service Loan Forgiveness, deferment during hardship, and fixed rates. Private loans may offer lower rates for creditworthy borrowers but lack these protections. Always exhaust federal loan options before turning to private loans.
Historical Context
Federal student loan rates are set annually based on the 10-year Treasury yield. Private student loan rates have become more competitive, with some lenders offering rates below federal rates for the most creditworthy borrowers. Refinancing federal loans into private loans means losing income-driven repayment and forgiveness options.
How to Get the Best Student Loan Rate
Federal loans offer income-driven repayment and forgiveness programs that private loans don't.
Refinancing federal loans into private loans means losing federal protections.
Variable rates start lower but can increase — choose fixed for predictability.
Having a cosigner can significantly lower your private student loan rate.
Apply for scholarships and grants before taking on student loan debt.
Get Notified When Student Loan Rates Drop
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Calculate What These Rates Mean for You
Frequently Asked Questions
What is the difference between federal and private student loans?
Federal student loans are issued by the government with fixed rates set annually, and offer benefits like income-driven repayment, deferment, and loan forgiveness programs. Private student loans are issued by banks and lenders with variable or fixed rates based on creditworthiness, but lack federal protections.
Should I refinance my federal student loans?
Refinancing federal loans into a private loan can lower your rate but means permanently losing federal benefits like income-driven repayment, Public Service Loan Forgiveness, and forbearance options. Only consider refinancing federal loans if you have a stable income and do not anticipate needing these protections.
What is the current federal student loan rate?
For the 2025-2026 academic year, the federal Direct Loan rate for undergraduates is 5.50%, and for graduate students, it is 7.05%. These rates are fixed for the life of the loan but are set annually based on the 10-year Treasury yield.
Can I get a lower rate with a cosigner?
Yes, having a creditworthy cosigner can significantly reduce your private student loan rate, often by 1-3%. Many lenders offer cosigner release after 12-48 consecutive on-time payments, freeing the cosigner from responsibility.
Fixed vs variable student loan rates: which should I choose?
Fixed rates provide payment predictability and protection against rising rates. Variable rates start lower but can increase over time. If you plan to repay quickly (within 5 years), a variable rate may save money. For longer repayment periods, fixed rates offer more certainty.
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Rates shown are for informational purposes only and do not constitute a loan offer or financial advice. All rates are subject to change without notice. Last updated: March 10, 2026.