As of July 2025, the best interest rates on private student loans started around 3% for fixed-rate loans and between 4% and 5% for variable-rate loans. For federal student loans, rates in recent years have ranged from 2.75% to 6.54% for undergraduate borrowers. For the 2025-2026 school year, rates on undergraduate loans are set at 6.39%.

Last week, the average rate on a variable five-year student loan fell to 8.63% on average from 8.93%. In contrast to fixed rates, variable interest rates fluctuate over the course of a loan term.

According to Credible.com, from December 30 to January 4, the average fixed interest rate on a 10-year private student loan was 6.95%. It was 9.45% on a five-year variable-rate loan.

As of August 29, 2024, the average federal student rates (for the 2024-2025 school year) are: Direct subsidized (undergraduate students): 6.54%; ... Private student loan interest rates.

The fixed interest rate on federal student loans will climb to 6.53% for undergraduate loans — up from 5.5% last year. ... The average new car loan rate is 7.9%, ...

When inflation likely triggers rate-increases, variable-rate student loans will also see higher interest rates. Read more Here’s the average student loan debt of borrowers 35 to 49 years old