Student Loan Interest RatesStudent loan interest rates were at historic lows for the 2020-2021 academic year in response to the ever-ballooning national student debt, which was labeled a crisis as early as 1995. Show
Federal Interest Rates92.24% of all student loan debt is federal. Federal loan interest rates are fixed, meaning the interest rate stays the same as long as there is an outstanding balance on the loan.
Historical Federal Interest RatesWhile the earliest federal student loan progams date to 1944, they were only available to military veterans until 1958.
Graduate, Professional, & Parent RatesInterest rates for parents and graduate students haven’t fallen as quickly as loans for undergraduates.
Private Loan Interest RatesPrivate lenders have started to implement strategies similar to federal relief in order to keep default rates at historic lows; the current private loan default rate is 2%.
*Both of these rates are from CollegeAve. Refinance Loan Interest RatesFederal and private student loans can only be refinanced through private lenders.
For more information, see our report on Student Loan Refinancing. Sources
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