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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 over the past year, interest rates remain high across the board, which can make it tough to find affordable borrowing options. 

And, 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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Federal student loan rates — 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 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 :

For most borrowers, the lower end of those private student loan rate ranges is only accessible with and , or with the help of a creditworthy . 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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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:

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.