Borrowing rules / Interest rates
Checked against StudentAid.gov and the Federal Register on Oct 22, 2026
Federal student loan interest rates for 2026–27
Federal loans first paid out from July 1, 2026 through June 30, 2027 carry fixed rates of 6.52% for undergraduates, 8.07% for graduate and professional students, and 9.07% for PLUS loans. The rate stays the same for the life of the loan.
| Loan | 2026–27 rate | 2025–26 rate | Loan fee |
|---|---|---|---|
| Direct Subsidized and Unsubsidized, undergraduate | 6.52% | 6.39% | 1.057% |
| Direct Unsubsidized, graduate or professional | 8.07% | 7.94% | 1.057% |
| Direct PLUS, parents and graduate or professional students | 9.07% | 8.94% | 4.228% |
Rates: StudentAid.gov. Fees apply to loans first paid out from Oct. 1, 2020 to before Oct. 1, 2027 and are taken out of each disbursement. Rates rose 0.13 points from 2025–26 for every loan type.
What each rate costs per $10,000
Our arithmetic from the official rates and fees. Interest on federal loans accrues daily; the monthly figure below is the rate ÷ 12, so a real month can differ by a few cents.
| Loan | You receive from $10,000 after the fee | Interest in a month | 10-year Standard payment | Same, 1 point lower with auto pay |
|---|---|---|---|---|
| Direct Subsidized and Unsubsidized, undergraduate | $9,894.30 | $54.33 | $113.65 | $108.63 |
| Direct Unsubsidized, graduate or professional | $9,894.30 | $67.25 | $121.70 | $116.47 |
| Direct PLUS, parents and graduate or professional students | $9,577.20 | $75.58 | $127.05 | $121.70 |
You repay the full $10,000 even though the fee is deducted first. Standard payment: 120 equal monthly payments. The auto pay column applies the 1-point cut for the whole 10 years; the cut is promised through June 30, 2028 to borrowers who enroll by Dec. 31, 2026, so it shows the most it could save. For your own balance, use the student loan calculator.
Cite this data
Free to reuse under CC BY 4.0: credit Student Loan Clear and link to this page.
Student Loan Clear, “Federal student loan interest rates 2026–27 and cost per $10,000,” data as of Oct 22, 2026. https://studentloanclear.com/borrowing/student-loan-interest-rates/
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<iframe src="https://studentloanclear.com/embed/student-loan-interest-rates-2026-27/" title="Federal student loan interest rates 2026–27 and cost per $10,000" width="100%" height="330" style="border:0" loading="lazy"></iframe> <p>Source: <a href="https://studentloanclear.com/borrowing/student-loan-interest-rates/">Federal student loan interest rates 2026–27 and cost per $10,000</a>, Student Loan Clear (data as of Oct 22, 2026)</p>
How the rate is set
The rates are set by federal law, not by the Department of Education. Each year the rate for new loans is the high yield of the 10-year Treasury note at the last auction before June 1, plus a fixed add-on, up to a cap (20 U.S.C. 1087e(b)(8)). For 2026–27 that auction was on May 12, 2026, at 4.47%.
| Loan | Treasury yield | Add-on | Rate | Cap |
|---|---|---|---|---|
| Direct Subsidized and Unsubsidized (undergraduate) | 4.47% | +2.05 | 6.52% | 8.25% |
| Direct Unsubsidized (graduate) | 4.47% | +3.60 | 8.07% | 9.50% |
| Direct PLUS | 4.47% | +4.60 | 9.07% | 10.50% |
The 2025 law (Public Law 119-21) didn’t change this formula. It did end Grad PLUS for new graduate and professional borrowers from July 1, 2026, except for students who qualify for the interim exception; parent PLUS continues with new limits.
Questions people ask
Do these rates apply to loans I already have?
No. Each federal loan keeps the fixed rate of the year it was first paid out. Your loans and their rates are in your StudentAid.gov dashboard.
Will consolidating change my rate?
A Direct Consolidation Loan gets the weighted average of the rates on the loans it repays, rounded up to the next 1/8 of a percent. How the consolidation rate works
How do I get the lower auto pay rate?
Enroll in auto pay with your servicer. The Department says borrowers who enroll by Dec. 31, 2026 get a 1-point cut on eligible Direct Loans through June 30, 2028. Auto pay rate cut
When are the 2027–28 rates set?
After the last 10-year Treasury auction before June 1, 2027. This page is updated when the Department publishes them.
Official sources
- StudentAid.gov: Federal Interest Rates and Fees
- Federal Register, Sept. 10, 2026: annual notice of Direct Loan interest rates
- 20 U.S.C. 1087e(b)(8): rate formula and caps
- StudentAid.gov: PLUS loans (Grad PLUS ends for new borrowers July 1, 2026)
- Department of Education, Sept. 29, 2026: auto pay enrollment extended to Dec. 31, 2026
Last verified Oct 22, 2026. Not financial advice. Corrections are logged on What changed.