Federal student loan interest rates for 2026–27
Fixed rates for Direct loans first disbursed between July 1, 2026 and June 30, 2027.
Sourced from official pages · Updated September 30, 2026💡 Key takeaways
- 2026–27 fixed rates: 6.52% (undergraduate), 8.07% (graduate and professional unsubsidized), 9.07% (PLUS).
- Rates are fixed for the life of each loan and reset each year for new loans.
- Grad PLUS is no longer available to new borrowers.
- Interest on unsubsidized loans accrues while you are in school.
2026–27 rates
| Loan type | Fixed interest rate |
|---|---|
| Direct Subsidized and Unsubsidized — undergraduate | 6.52% |
| Direct Unsubsidized — graduate and professional | 8.07% |
| Direct PLUS (parents and, for existing borrowers, graduate students) | 9.07% |
Rates are fixed for the life of each loan; a new rate is set each academic year for new loans. Under the 2026 changes, Grad PLUS loans are no longer available to new borrowers.
What it costs
Use the student loan calculator (it starts at the 6.52% undergraduate rate) to see the monthly payment and total interest on a standard 10-year plan, and the extra-payments tool to see how paying more shortens the term.
Note
Federal student loan rules changed on July 1, 2026. Which repayment plans and limits apply to you depends on when your loans were first disbursed. Confirm your options on studentaid.gov or with your loan servicer.
Subsidized vs unsubsidized
On subsidized loans, the government pays the interest during certain periods such as enrollment. On unsubsidized loans, interest starts accruing right away, and unpaid interest can be added to the balance later. Check studentaid.gov for how the changes apply to new borrowers.
Interest and fees
Federal Direct Loans also carry an origination fee taken from each disbursement; see studentaid.gov for the current percentages before estimating what you receive.
Paying less interest
- Pay interest while in school if you can.
- Make extra payments toward principal, not future payments.
- Enroll in autopay if your servicer offers an interest-rate discount.
🔤 Key terms
| Term | Meaning |
|---|---|
| Direct Subsidized loan | Federal loan where the government pays interest during certain periods, for eligible undergraduates |
| Direct Unsubsidized loan | Federal loan where interest accrues from disbursement |
| PLUS loan | Federal loan for parents (and, for existing borrowers, graduate students) |
| Capitalization | Unpaid interest added to your principal balance |
| Fixed rate | A rate that does not change for the life of the loan |
Scenarios
| Situation | What to consider |
|---|---|
| You are still in school | Consider paying interest on unsubsidized loans while enrolled to limit growth |
| You are about to repay | Choose a repayment plan and set up autopay |
| You are comparing with a private loan | Compare fixed vs variable, fees and protections against federal terms |
🧮 Example: what the rate costs on $30,000
At 6.52% for 10 years, monthly payments are about $340.95 and total interest about $10,914. At 8.07%, the same balance costs more each month. Enter each rate in the student loan calculator to compare.
⚠️ Common mistakes to avoid
- Comparing federal rates with private rates without checking fixed vs variable.
- Ignoring interest that accrues during school on unsubsidized loans.
- Assuming the rate you were quoted last year applies to a new loan.
🛠️ Try it yourself
❓ Frequently asked questions
Are federal student loan rates fixed?
Yes, fixed for the life of each loan; a new rate applies to new loans each academic year.
What is the rate for PLUS loans?
9.07% for 2026–27.
Are there rate differences for graduate students?
Yes: 8.07% for graduate and professional unsubsidized loans.
Can my rate change during repayment?
Federal loans have fixed rates for each loan, so the rate on a loan does not change after it is disbursed.
📚 Sources
This guide is general information, not financial, tax or legal advice. Rules and limits change; confirm with the sources above or a licensed professional.