Student Loan Interest Rate Increases

Student loan interest rates increased last month, according to a U.S. News analysis of minimum and maximum APRs reported by private lenders. Student loan rates have trended higher during the past year, with variable rates climbing by a higher margin than fixed rates.

Here are the in-school student loan rates offered during the month of Jan. 2023:

Average fixed APR range: 4.29% – 13.62% (Compared to 4.21% – 13.32% the previous month).

Average variable APR range: 4.13% – 13.37% (Compared to 3.64% – 12.64% the previous month).The APRs on the lower end of the range are generally reserved for applicants with a high credit score and low debt-to-income ratio, while those with poor credit or limited income will see higher rates.

If you don’t have the credit history needed to qualify for a competitive student loan rate, consider enlisting the help of a cosigner. Additionally, shop around with multiple student loan lenders to ensure you’re getting the lowest possible rate for your financial situation.

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