Payments on federal student loans will begin again in just two months, so here are some tips for borrowers.

For the first time since the COVID-19 outbreak began in March 2020, federal student loan payments will restart in May. After two years of government forbearance, borrowers have just two months to start organizing their finances.

Before the 2022 midterm elections, Democrats told President Joe Biden that resuming payments without canceling student loans would be “disastrous.”


The Biden administration has not disclosed any intentions to prolong forbearance beyond this year, despite polling evidence suggesting that the majority of Americans want the student loan payment moratorium extended.

Continue reading to learn about federal student loan repayment options, such as income-driven repayment, federal deferral, and refinancing. Comparison shopping for student loan refinancing rates is risk-free on Credible.

Student loan rates from private lenders may be lower.

According to the Education Data Initiative, the average interest rate for all current student loan borrowers is 5.8%. If you have Direct Program Loans or Parent PLUS Loans, your interest rate is determined by the type of loan you have.

According to reliable statistics, the following are the average federal interest rates for several types of loans from 2006 through 2022:

The interest rate on undergraduate Direct Loans is 4.60 percent

The percentage of borrowers who receive federal student loans is 6.16 percent.

7.20 percent of Direct PLUS Loans

Credible borrowers with good credit saw average rates of 3.75 percent for 10-year fixed-rate loans and 3.10 percent for 5-year variable-rate loans during the week of February 14.

The interest rate you pay on a private student loan will depend on your credit score and your debt-to-income ratio, but the rate you pay on a federal student loan depends on when you take out the loan (DTI). To secure a lower interest rate, borrowers with fair or poor credit can consider enlisting the support of a creditworthy cosigner.

It’s possible to save thousands of dollars over time by refinancing your student loans, but that may not be the best option for everyone. In order to qualify for student loan forgiveness programs like Public Service Loan Forgiveness (PSLF), you would have to refinance a private student loan.

Refinancing student loans while interest rates are low may be an option for borrowers who don’t intend to use federal student loan benefits. It is possible to save money by refinancing your student loans at a reduced interest rate, reducing your monthly payments, and paying off your debt more quickly.

Additional benefits include a ban on refinancing fees levied by private student loan providers when you pay interest on a loan, and the overall cost of borrowing is reflected in the interest rate you pay. Student loan refinances calculators are available to assist you to determine whether this is the best option for you.

In the table below, you’ll find current refinancing rates for student loans from a variety of online lenders. Visit Credible to get an estimate of your interest rate using a soft credit check that won’t affect your credit score.

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