For federal Direct Loans first disbursed between July 1, 2026 and June 30, 2027, the fixed interest rates are 6.52% for undergraduates, 8.07% for graduate and professional unsubsidized loans and 9.07% for PLUS loans (FSA, June 4, 2026). Each is the May 2026 10-year Treasury auction yield (4.468%) plus a fixed add-on, and each is up 0.13 point from 2025-26.
2026-27 federal student loan rates
| Loan | 2025-26 | 2026-27 | Formula | Cap |
|---|---|---|---|---|
| Direct Subsidized & Unsubsidized (undergrad) | 6.39% | 6.52% | 4.468% + 2.05% | 8.25% |
| Direct Unsubsidized (graduate/professional) | 7.94% | 8.07% | 4.468% + 3.60% | 9.50% |
| Direct PLUS (parents, grad/professional) | 8.94% | 9.07% | 4.468% + 4.60% | 10.50% |
Rates are set by law each year: the high yield of the last 10-year Treasury note auction before June 1, plus 2.05% (undergraduate), 3.6% (graduate) or 4.6% (PLUS), up to the caps shown. The May 12, 2026 auction yielded 4.468%, versus 4.342% in May 2025.
What the rates cost per $10,000
| Rate | 10-yr payment per $10k | Interest per $10k | Extra interest on $30k vs 2025-26 |
|---|---|---|---|
| 6.52% | $113.65 | $3,638 | $238 |
| 8.07% | $121.70 | $4,604 | $247 |
| 9.07% | $127.05 | $5,247 | $253 |
The 0.13-point increase is small: on a $30,000 balance it adds a few dollars a month. Your rate is fixed for the life of each loan, so loans from earlier years keep their own rates — a borrower with loans from several years has a blended rate.
Which rate applies to your loan?
The rate depends on the date each loan is first disbursed, not the academic year or the date you applied. A fall 2026 loan disbursed in August 2026 gets the 2026-27 rate; a summer 2026 loan disbursed in June 2026 keeps the 2025-26 rate even if it is part of the same award year. Each later disbursement of the same loan keeps the rate of the first.
If you borrowed every year of a four-year degree, you have four or more loans with different rates. Your servicer shows each one, and the 10-year payment is the sum of each loan’s amortized payment. A quick blended rate: weight each rate by its balance — for example $5,500 at 6.39% plus $6,500 at 6.52% averages 6.46%.
Consolidating creates one loan with a fixed rate equal to the weighted average of the loans consolidated, rounded up to the nearest one-eighth of a point. It doesn’t lower your rate, and a consolidation on or after July 1, 2026 moves you to the new repayment rules (RAP or Tiered Standard).
Federal vs private student loan rates
Federal rates are the same for every borrower regardless of credit. Private lenders price by credit score and income, so borrowers with excellent credit or a strong cosigner may see lower fixed rates — but private loans lack RAP, PSLF and federal discharge options. With graduate borrowing now capped, more graduate students will compare the two.
Check what fits your take-home payRun your salary through the paycheck calculator to see how much a student loan payment leaves for everything else.
How to lower your effective rate
- Enroll in auto-debit with your servicer for the customary 0.25-point reduction.
- Pay interest during school on unsubsidized loans to avoid any later capitalization.
- Use the student loan interest deduction if your MAGI qualifies (up to $2,500).
- Refinance only after weighing the federal protections you give up.
Frequently asked questions
What is the federal student loan interest rate for 2026-27?
6.52% for undergraduate Direct Loans, 8.07% for graduate/professional Direct Unsubsidized Loans and 9.07% for Direct PLUS Loans first disbursed July 1, 2026 through June 30, 2027.
Are federal student loan rates fixed?
Yes. Each loan keeps the rate set for the year it was first disbursed for its whole life.
How are federal student loan rates determined?
By statute: the high yield of the 10-year Treasury note auctioned before June 1, plus a fixed add-on (2.05% undergraduate, 3.60% graduate, 4.60% PLUS), subject to caps of 8.25%, 9.50% and 10.50%.
Did student loan rates go up for 2026-27?
Yes, slightly: each rate is 0.13 point higher than 2025-26 (6.39%, 7.94% and 8.94%).
Related student loan guides
- How student loan interest worksDaily accrual, subsidized vs unsubsidized
- New student loan limits 2026Grad PLUS ends, $100k / $200k caps
- Refinance student loans?Savings vs federal protections
- Tiered Standard plan10, 15, 20 or 25 years by balance
- RAP explainedPayment chart, $50 match, 30-year forgiveness
- Interest deduction 2026$2,500 and the phase-out
- Monthly payment on $20,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $30,000 in student loansEvery plan, 2026-27 rates
- Monthly payment on $60,000 in student loansEvery plan, 2026-27 rates
Payments by balance
Sources & methodology
- U.S. Department of Education, FSA Electronic Announcement GENERAL-26-33, “Interest Rates for Federal Direct Loans First Disbursed Between July 1, 2026 and June 30, 2027” (June 4, 2026).
- FSA Electronic Announcement DL-25-03, interest rates for loans first disbursed July 1, 2025–June 30, 2026 (May 30, 2025).
- Payments use standard amortization with monthly interest. RAP and IBR projections are our simplified models (income +3%/yr, single loan, on-time payments) — your servicer’s figures will differ. Information only, not financial, tax or legal advice. Rules checked 2026-11-03.