At the beginning of 2025, the refinance interest of student loans were kept steadily for a few months. Although we are not all time, many borrowers still have excellent opportunities for lower interest rates on their private loans.
If you have bought a rate in recent months, you probably don’t have to do it again this month, not much is not much exercise. However, if it has been a while since you looked at the refinancing figures, things are now better than they have been at any time in recent years.
Important comment: To compile the best refinancing figures for May 2025, almost two dozen national lenders were compared. The lenders mentioned below were those with the lowest verified rates.
The lowest rate below contains all available 0.25% rate discount for borrowers that register for Autopay.
The current refinancing interest of the lowest student loan For variable loans
The headline interest rates now float around 5% with most of the best lenders. We have seen these rates climbing in recent months and all signs indicate that they continue to increase.
It is important to note that although Splash, Laurel Road and Elfi have the lowest possible interest rates, they do not necessarily get the first place in our consolidation of student loans and refinancing ranking. Borrowers are still best served by applying for 4-5 lenders, because every lender has a different formula for evaluating applications. The best advertised rates are not always equal to the best offered rate, but they do offer a useful starting point.
The best 20-year-old refinancing figures for May 2025
On the other side of the Spectrum, the best 20-year-old fixed interest loans are currently offered by Splash, Laurel Road and Elfi. Most other lenders have considerably higher rates and are not included in this table. The money lenders at the top of this list look much different than the money lenders at the top of the 5-year lists. Borrowers must consider whether they want a longer loan before putting together an application strategy.
Borrowers looking for the lowest possible payment when they refinance usually opt for a 20 -year loan. The advantage is an easy monthly payment, but the disadvantage is that it has a somewhat higher interest rate.
However, it is worth noting that the gap between the 5-year-old variable loans and the 20-year-old loans with fixed interest rates will remain tight. Choosing a considerably lower payment and a slightly higher interest rate can be useful for many borrowers. Locking in a fixed rate also prevents payments in the future.
Sherpa Tip: The interest roof between 10, 15 and 20-year-old loans is now mainly small. Even if you do not need the lower payment offered by the 20-year loan, this may still be the best choice.
If you opt for a lower monthly payment you give flexibility in the event of financial problems. It also releases cash every month to concentrate on other goals, such as buying a house or saving for retirement.
For many borrowers, I think that locking a 20-year loan with fixed interest rates is the best option currently available.
The lowest student loans with fixed interest rate available
For borrowers in search of the stability of a loan with a fixed interest rate, but still looking for an ultra-loose interest, the 5-year loan with a fixed interest rate is usually the best gamble.
Surprisingly, the interest on a fixed loan of 5 years with many lenders is actually lower than a variable loan of 5 years. We usually see lower rates on variable loans, but this is a unique interest rate environment.
Other remarkable interest differences
In the mid-length loans, in particular those of 7, 10 or 15 years in duration, SPLASH, SOFI and Elfi perform strongly. However, most borrowers will best be served by choosing a short 5-year loan at the lowest possible interest rate or choosing a 20-year loan to get the smallest possible payment.
For our general rankings and lender reviews, view our page with the ranking of student loans.
Tips to get the best rate
For borrowers of student loans who are looking for a lower interest rate, it is important to keep a few things in mind:
- Shopping to find the best rate has never been so important. The interest rates are constantly changing and some lenders are starting to get picky for approvals.
- You can always refinance again in the future. In contrast to a mortgage where a refinancing is time -consuming and expensive, refinancing a student loan takes little time and does not entail any transaction costs. If you hold a loan with a fixed speed today, you can always refinance that loan next year if the rates are falling. This is the ideal strategy to use when the rates fall.
- When you refinance, choose a new monthly payment. Two loans with 5.49% are not necessarily the same. If you have 20 years old to repay a loan, your monthly payment is much lower than a 5 -year loan. This can free up cash for building an emergency fund, saving for retirement or buying a house.
- Play around with different repayment lengths. For some lenders, the interest rate for a 5 -year loan is the same as for a loan of 15 years. Lower monthly payments are preferred even if you want to pay off your debt quickly.
Finally, if you have a variable rate loan, you can get off the inflation roller coaster by refinancing in a loan with a fixed interest rate. It does not matter how many interest rates grow in the future, if you have a loan with a fixed interest rate, your monthly invoice will not change. discussion