This week's student loan refinancing rates: January 10, 2023

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Average interest rates on refinanced student loans are a mixed bag from two weeks ago, according to Credible. Rates on 10-year undergraduate loans are up, while those on five-year graduate loans are unchanged, and five-year undergraduate and 10-year graduate loans are down. College costs have risen in the past  year as the Federal Reserve has acted aggressively to decrease inflation by increasing the federal funds rate. Those higher rates ultimately make it more expensive for consumers to borrow money for everything from going to college to buying a house or a car. Federal student loan rates for the 2023-24 school year have risen by the widest margin in about 20 years.

While private student loan rates aren't directly affected by federal rates, they may also go up because they don't have to stay as low to remain competitive with federal ones.  Important: The Biden administration extended the repayment pause on federal student loans through the end of August 2023. You won't qualify for this pause if you refinance your federal loans into private ones.

You may also pay higher interest rates with private loans, making federal loans the best choice in most cases. It indicates an expandable section or menu, or sometimes previous / next navigation options. It indicates an expandable section or menu, or sometimes previous / next navigation options.

5-year variable student loan refinancing ratesRates on 5-year variable undergraduate student loans are about 1% lower than they were two weeks ago. Even with this decrease, they are substantially higher than they were 12 months ago. Graduate rates are unchanged this week. Rates are up roughly 2% from one year ago. 10-year fixed student loan refinancing ratesRates on 10-year undergraduate loans are up by 18 basis points from two weeks ago, while graduate rates have decreased by 23 basis points.From one year ago, undergraduate and graduate rates have gone up by about 3%. You'll often get a better interest rate with a higher credit score, although that's not always the case.

The table below shows the 10-year fixed student loan rates by credit score:Example: Let's say you're repaying a $20,000 undergraduate loan over 10 years with the above interest rates. If you your credit score is below 680, the lifetime cost of your loan would be $27,755 with this past week's rate of 6.91%. For borrowers with a score over 780, paying an average rate of 5.46%, the same loan would have cost $25,999, or $1,756 less.Frequently asked questions For most younger students, you aren't likely to be approved without a cosigner.

It is possible, but mainly for students who have an established credit history and an income. Once you have some credit established, however, you may be able to remove your cosigner by refinancing. Some lenders also allow borrowers to remove cosigners after several years of consecutive payments.  Your credit history is the most important factor in your refinancing approval chances.

If you have a poor credit score, it'll be harder for you to get approved for a new loan, but you may be able to add a cosigner to boost your likelihood of approval.  Unfortunately, no. Private student loans don't qualify for any federal forgiveness programs, including the widescale forgiveness currently being challenged in court. Repaying your student loans during the repayment pause, which is set to go through August 2023, may help you save hundreds or even thousands on interest.

This is because any payment you make on your student loans goes directly toward your balance. Usually when you make a payment, a portion of it goes toward paying down interest. Ryan Wangman is a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans.

He is also a Certified Educator in Personal Finance (CEPF). In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.  Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services here >> Read more Read less Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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