Disclaimer: Rates below are the U.S. Department of Education's published fixed rates for new federal Direct Loans, set annually by law from the 10-year Treasury auction and fixed for the life of each loan. Your actual rate depends on your loan type and disbursement date. Confirm current figures on studentaid.gov. This is general information, not financial advice.
Direct answer: For loans first disbursed from July 1, 2026 through June 30, 2027, federal rates rise slightly versus 2025-26. Undergraduate Direct Loans go to 6.52% (from 6.39%), graduate Direct Loans to 8.07% (from 7.94%), and Parent/Grad PLUS loans to 9.07% (from 8.94%). Each year's rate is locked in for that loan's entire life, so a loan taken in 2025-26 keeps its lower rate even as new loans cost more.
2025-26 vs 2026-27 Federal Loan Rates
| Loan type | 2025-26 rate | 2026-27 rate | Change |
|---|---|---|---|
| Direct Subsidized / Unsubsidized (undergraduate) | 6.39% | 6.52% | +0.13 pts |
| Direct Unsubsidized (graduate) | 7.94% | 8.07% | +0.13 pts |
| Direct PLUS (grad & parent) | 8.94% | 9.07% | +0.13 pts |
Sources: U.S. Department of Education / Federal Register, Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans (Federal Register 2026-04065, published Mar 2, 2026); Federal Student Aid interest-rate pages (studentaid.gov).
Why the rate moves every year
Congress sets federal student loan rates by a formula: the rate equals the 10-year Treasury note yield at a spring auction plus a fixed statutory add-on (2.05 points for undergraduates, 3.60 for graduates, 4.60 for PLUS). The result is rounded to the nearest 0.125% and then fixed for the life of that loan. Because Treasury yields were a bit higher for the 2026-27 calculation, every category ticked up by about 0.13 points.
What this means for borrowers
- Existing loans keep their rate. A loan you took in 2025-26 stays at 6.39% (undergrad) regardless of the new rate.
- New borrowing costs more. On a $30,000 undergraduate loan over 10 years, the move from 6.39% to 6.52% adds roughly $20-25 per year in interest — small per loan, but meaningful across a full degree.
- Parent PLUS is now 9.07%. Parents borrowing for a child should compare the PLUS rate against other options and model the payment with a repayment calculator before committing.
- Refinancing federal into private loses protections. Federal loans carry income-driven repayment and forgiveness options; refinancing to chase a lower private rate forfeits them.
Plan with the right tool
Estimate your payment under the 2026-27 rate with the Student Loan Repayment Calculator, and see your net cost after aid with the Financial Aid Net Cost Calculator.