Last week, the average interest rate on 10-year fixed-rate private student loans increased. But borrowers interested in pursuing private student loans to make up for a gap in college funding can still score lower rates than this time last year.

As of June 2025, the best interest rates on private student loans started around 3.19% 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%.