What’s a good student loan rate for fall 2025?

College students heading into the fall 2025 semester have more than dorm room checklists and course schedules on their minds. They’re also navigating today’s tricky borrowing environment. While inflation has cooled substantially over the past year, interest rates remain high across the board, which can make it tough to find affordable borrowing options. 

And, the cost of higher education has continued to climb, which means that paying for school often requires taking out substantial amounts of money. So, borrowing for school is a significant financial decision right now. And, if you plan to borrow enough to cover all of your fall 2025 college expenses, you could end up with hefty interest charges if you aren’t careful. 

That’s why locking in a good student loan rate this fall is more important than ever. But what exactly is a “good” rate in 2025? With federal and private loan options on the table — and a wide range of rates — it’s not always obvious. Below, we’ll detail what you need to know to spot a solid rate and avoid overpaying for your education.

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What’s a good student loan rate for fall 2025?

Federal student loan rates declined slightly for the 2025-26 school year — the first time rates have fallen in five years. For federal undergraduate loans, student loans disbursed between July 1, 2025, and June 30, 2026, the interest rate will be 6.39% — down from 6.53% for the 2024-25 school year. Graduate student loans will have a 7.94% interest rate, and Parent PLUS loans will have an 8.94% interest rate.

The general rule is that a good student loan rate is the lowest rate you can qualify for based on your financial situation, but is ideally below the national average. So, with fixed federal rates now at 6.39% for undergrads, anything significantly below that from a private lender could be considered competitive.

And, it’s possible to find substantially lower rates on private student loans right now. For example, there are lenders offering fixed private student loan rates starting at 3.29% and variable rates starting at 4.39% for the fall 2025 semester. Here’s a breakdown of the current private student loan ranges from some of the top lenders:

• Private fixed-rate student loans: 3.29% – 17.99%
• Private variable-rate student loans: 4.39% – 15.99%

For most borrowers, the lower end of those private student loan rate ranges is only accessible with a strong credit score and a low debt-to-income ratio, or with the help of a creditworthy co-signer. If you can land a fixed rate under 6%, that’s good in today’s environment. 

If your best offer is higher than 7%, though, and you qualify for federal aid, sticking with federal loans might be the safer route. After all, federal loans offer unique borrower protections like income-driven repayment plans and potential forgiveness options — and your rate will be lower on that type of loan, too.

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How to find the best student loan rates this fall

If you’re hunting for the lowest possible rate this fall, the key is to be prepared, know what the lowest rates are in today’s rate landscape and then shop around and compare your options. Here’s how to do that:

• Start with federal aid. Always fill out the Free Application for Federal Student Aid (FAFSA) first to find out what, if any, federal loans or grants you qualify for. Federal loans come with built-in benefits that private loans don’t offer, like fixed rates, no credit checks for undergrads, deferment options and forgiveness programs. So, it makes sense to take advantage of those first.
• Compare private lenders. If you’ve maxed out your federal aid or are looking for additional funds, you’ll need to turn to private lenders for your student loans. You can use loan comparison tools to view real-time rates from multiple lenders, and many offer soft credit checks so you can prequalify without dinging your credit score.
• Look for discounts. Some private lenders offer rate discounts if you sign up for autopay or if you’re a returning customer. Even a 0.25% reduction can make a meaningful difference over time, so make sure to inquire about those opportunities to save.
• Apply with a co-signer if needed. Most undergrads don’t have long credit histories, and that’s where a co-signer (like a parent or guardian) can help. Co-signed loans often qualify for better rates, especially if the co-signer has strong credit.
• Understand the fine print. The rate and loan terms also matter. For example, variable-rate loans may start lower but they can increase over time, which could become costly if rates rise further. Fixed-rate loans offer more predictability and are generally safer unless you’re confident you’ll repay quickly. So, if you’re worried about increasing loan costs down the line, it could make sense to choose a fixed loan with a slightly higher rate rather than opting for a variable rate that could increase in time.

The bottom line

When it comes to covering the cost of college this fall, borrowers should be especially strategic about finding the best rate possible to keep the costs down. A good student loan rate in 2025 is anything under the federal benchmark — but is ideally closer to the 4% to 5% range, which may be possible to find with the right lender. But it’s also important to remember that the “best” rate isn’t just about the number. It’s also about flexibility, protections and your long-term repayment goals.