This week's student loan refinancing rates: June 28, 2022 | Rates at new lows

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

Average interest rates on 5-year refinanced undergraduate student loans have gone down since two weeks ago, and 5-year graduate loans are the lowest they've been in 12 months, according to Credible. Rates on 10-year loans have gone up a small amount.

Rates might not stay this low, though. For the 2022-23 school year, federal student loan rates will rise by the highest amount since the 2005-06 year. These new rates won't directly impact private student loan rates, but private rates may increase as they don't have to remain as low to be on par with federal loan rates.

Note: While you're able to refinance your federal loan into a private one, private loans usually come with higher interest rates and without benefits like the current repayment pause — which pretty much always makes federal loans the better option.

5-year variable student loan refinancing rates

Refinance rates on 5-year variable-rate undergraduate student loans have inched down this past week, decreasing by 12 basis points from two weeks ago to 4.01%. 

The refinance rates on 5-year variable graduate loans have hit rock bottom, dropped almost 1% and reaching their year-long low. 

10-year fixed student loan refinancing rates

Refinance rates on 10-year fixed student loans this past week have ticked up from two weeks ago. Undergraduate rates have gone up by 16 basis points, while graduate rates have dipped by just one basis point. Rates have gone up substantially from one year ago.

Student loan interest rates by credit score

Your credit score impacts the rates you get substantially. You'll usually get a better rate the higher your credit score. Below, we've listed the 10-year fixed student loan rates by credit score:

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 consistently paying back your loans on time, so the better your credit history, the more probable you are to qualify for a low rate. 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 to refinance a student loan

Start the refinancing process by looking at your terms with different lenders. Review the offers and figure out which rate and term length is best for you. When you check at your rates, lenders will usually perform a soft credit check, which doesn't hurt your credit score. 

You'll need to apply to refinance through a private student loan lender, as you're unable to refinance a student loan through the federal government. 

Once you've picked a company, you'll fill out its application and give documents that verify your finances and identity. After the lender makes its final offer, you'll need to sign the agreement and accept the terms. Then, your new lender will pay off your existing loan and you'll be off and running with a new loan. 

5-year vs. 10-year loan

If you want a better interest rate and you're financially able to pay off your loan fast, a 5-year loan term could be a great choice. You'll save money in interest and will free up money to put toward your other financial goals more quickly.

A 10-year loan term will cost you more overall, but you'll make smaller monthly payments. This may make it easier for you to repay your loan if you're on a tight budget.