Wealthy PotFederal Student Loan Interest Rates 2026-27: 6.52%, 8.07% and 9.07%
Federal student loans first disbursed between July 1, 2026 and June 30, 2027 have fixed interest rates of 6.52% for undergraduates, 8.07% for graduate and professional students, and 9.07% for PLUS loans, according to the Department of Education's notice in the Federal Register. The rate is fixed for the life of each loan. Each loan also has an upfront fee: 1.057% on Direct Subsidized and Unsubsidized Loans and 4.228% on PLUS loans.
The Short Answer
- Undergraduates (Direct Subsidized and Unsubsidized): 6.52%, up from 6.39% in 2025-26.
- Graduate and professional students (Direct Unsubsidized): 8.07%, up from 7.94%.
- PLUS loans (parents, and graduate students still eligible): 9.07%, up from 8.94%.
- Loan fees: 1.057% and 4.228%, taken out of each disbursement.
- New from July 1, 2026: new graduate students can't get Grad PLUS loans, and new annual and lifetime limits apply.
2026-27 Rates and Fees
| Loan | Borrower | Fixed rate | Legal maximum | Loan fee |
|---|---|---|---|---|
| Direct Subsidized and Unsubsidized | Undergraduate students | 6.52% | 8.25% | 1.057% |
| Direct Unsubsidized | Graduate and professional students | 8.07% | 9.50% | 1.057% |
| Direct PLUS | Parents of dependent undergraduates; graduate and professional students | 9.07% | 10.50% | 4.228% |
Rates: Department of Education, Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans, Federal Register, September 10, 2026, for loans first disbursed on or after July 1, 2026 and before July 1, 2027; matching studentaid.gov. Fees: studentaid.gov, for loans first disbursed on or after October 1, 2020 and before October 1, 2027. Graduate students are not eligible for subsidized loans.
The loan fee comes out of each disbursement, but you repay the full amount borrowed. On a $5,500 undergraduate loan, about $58 is deducted and roughly $5,442 reaches your school (our arithmetic). On a $20,000 PLUS loan, the fee is about $846.
How the Rate Is Set
Since 2013 the rate has followed a formula in the Higher Education Act: the high yield at the last 10-year Treasury note auction before June 1, plus a fixed add-on, capped at a legal maximum. The new rate applies to loans first disbursed from July 1 to the next June 30.
- The 2026 auction: on May 12, 2026 the 10-year note sold at a high yield of 4.468%, rounded to 4.47%.
- Add-ons: 2.05 points for undergraduates (4.47% + 2.05% = 6.52%), 3.60 for graduate students (8.07%) and 4.60 for PLUS loans (9.07%).
- Next change: rates for 2027-28 will follow the May 2027 auction. Fed rate decisions affect them only through what they do to the 10-year Treasury yield.
Federal Student Loan Rates Since 2013
| First disbursed | Undergraduate | Graduate unsubsidized | PLUS |
|---|---|---|---|
| July 2026 - June 2027 | 6.52% | 8.07% | 9.07% |
| July 2025 - June 2026 | 6.39% | 7.94% | 8.94% |
| July 2024 - June 2025 | 6.53% | 8.08% | 9.08% |
| July 2023 - June 2024 | 5.50% | 7.05% | 8.05% |
| July 2022 - June 2023 | 4.99% | 6.54% | 7.54% |
| July 2021 - June 2022 | 3.73% | 5.28% | 6.28% |
| July 2020 - June 2021 | 2.75% | 4.30% | 5.30% |
| July 2019 - June 2020 | 4.53% | 6.08% | 7.08% |
| July 2018 - June 2019 | 5.05% | 6.60% | 7.60% |
| July 2017 - June 2018 | 4.45% | 6.00% | 7.00% |
| July 2016 - June 2017 | 3.76% | 5.31% | 6.31% |
| July 2015 - June 2016 | 4.29% | 5.84% | 6.84% |
| July 2014 - June 2015 | 4.66% | 6.21% | 7.21% |
| July 2013 - June 2014 | 3.86% | 5.41% | 6.41% |
Department of Education, Federal Register notice of September 10, 2026, Chart 2. Each loan keeps the rate of the year it was first disbursed.
The 2026-27 undergraduate rate is the second highest since the formula began, just below 2024-25's 6.53%. Loans from 2020-21 were the cheapest, at 2.75%. If you borrowed in several years, each loan has its own rate.
What the Rate Costs You
| Hypothetical loan, 10-year standard plan | Monthly payment | Total interest |
|---|---|---|
| $30,000 undergraduate at 6.52% | $340.95 | $10,914 |
| $30,000 graduate at 8.07% | $365.09 | $13,811 |
| $20,000 Parent PLUS at 9.07% | $254.11 | $10,493 |
Our arithmetic with the standard loan formula, ignoring fees and interest that builds up before repayment. Hypothetical.
Interest on unsubsidized and PLUS loans starts when the money is disbursed, including while you're in school. A hypothetical $10,000 unsubsidized loan at 6.52% builds up about $2,934 of interest over four and a half years before repayment starts (simple interest, our arithmetic). On subsidized loans, the government pays the interest while you're in school at least half-time.
New borrowers repay under a standard plan or the income-based Repayment Assistance Plan. See student loan forgiveness for what's still available, and average student loan debt for how much others owe.
New Borrowing Limits From July 2026
The One Big Beautiful Bill Act (Public Law 119-21) changed federal borrowing for periods of instruction starting on or after July 1, 2026:
- Grad PLUS ends for new graduate and professional students.
- Graduate students: up to $20,500 a year in Direct Unsubsidized Loans, $100,000 in total.
- Professional students (such as medicine or law): up to $50,000 a year, $200,000 in total.
- Parent PLUS: up to $20,000 a year and $65,000 in total for each dependent student, counting all parents together.
- Lifetime cap: $257,500 per student across federal loans, not counting Parent PLUS loans taken out for a child.
- Students already borrowing: if you were enrolled and had a federal loan for your program as of June 30, 2026, the old rules continue for the shorter of three academic years or the rest of your program.
Students who hit these limits may turn to private loans, which have no fixed federal rate, no federal fee and none of the federal repayment plans or forgiveness options.
Consolidation and Older Loans
- Direct Consolidation Loans have a fixed rate equal to the weighted average of the loans you combine, rounded up to the nearest one-eighth of a percent. Consolidation doesn't lower your average rate.
- Loans first disbursed July 2006 to June 2013 have fixed rates set in the law: 6.80% for most unsubsidized loans, 7.90% for PLUS, and 3.40% to 6.80% for subsidized undergraduate loans depending on the year.
- Loans first disbursed before July 2006 have variable rates reset each July.
Sources & Methodology
- Department of Education, Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans (Federal Register, September 10, 2026): 2026-27 rates, the May 12, 2026 auction, history since 2013, consolidation rules.
- Federal Student Aid, Interest Rates and Fees: rates and loan fees.
- Federal Student Aid, Subsidized and Unsubsidized Loans: who pays the interest during school.
- Public Law 119-21, section 81001: borrowing limits and the end of Grad PLUS.
Method notes. Payments and interest labelled "our arithmetic" are hypothetical, use a constant rate and ignore fees. Rates were checked against both the Federal Register notice and studentaid.gov on October 21, 2026.
This page is general information, not financial advice.
FAQ
What are federal student loan interest rates for 2026-27?
6.52% for undergraduate Direct Subsidized and Unsubsidized Loans, 8.07% for graduate and professional Direct Unsubsidized Loans, and 9.07% for Direct PLUS Loans first disbursed from July 1, 2026 through June 30, 2027.
Will my student loan rate change?
Not on federal loans first disbursed since July 2006: the rate is fixed for the life of the loan. Each new school year's loans get that year's rate.
When will 2027-28 rates be announced?
They are set by the last 10-year Treasury note auction before June 1, 2027, so they are known in May 2027 and apply to loans first disbursed from July 1, 2027.
What is the student loan origination fee?
1.057% for Direct Subsidized and Unsubsidized Loans and 4.228% for Direct PLUS Loans first disbursed before October 1, 2027. It is deducted from each disbursement.
Can graduate students still get PLUS loans?
Not if they start a program on or after July 1, 2026. Students who were enrolled and had a federal loan for their program as of June 30, 2026 can keep borrowing under the old rules for up to three more academic years.