New Federal Student Loan Rates for 2026-2027
Federal student loan interest rates reset every July 1, and the rates for loans first disbursed between July 1, 2026 and June 30, 2027 are higher than last year across the board: 6.52% for undergraduate Direct Loans, 8.07% for graduate Direct Unsubsidized Loans, and 9.07% for Direct PLUS Loans (parent and grad PLUS). Once you take out a loan at these rates, the rate is fixed for the life of that loan — it won’t change in future years, even though next year’s new borrowers will get a different rate. Use the student loan calculator to see what your new rate means for your monthly payment, and the loan amortization calculator to see a full year-by-year payoff schedule.
How the New Rates Compare to Last Year
| Loan Type | 2025-2026 Rate | 2026-2027 Rate | Change |
|---|---|---|---|
| Direct Subsidized/Unsubsidized (Undergraduate) | 6.39% | 6.52% | +0.13 pts |
| Direct Unsubsidized (Graduate/Professional) | 7.94% | 8.07% | +0.13 pts |
| Direct PLUS (Parent & Grad PLUS) | 8.94% | 9.07% | +0.13 pts |
Every category rose by the same 0.13 percentage points, which reflects a small uptick in the underlying Treasury yield used to set the rates (more on that below) rather than any policy change specific to student loans.
Why Rates Went Up: How Federal Student Loan Rates Are Set
Federal student loan rates aren’t set arbitrarily — they’re tied by law to the 10-year Treasury note yield from the last auction before June 1 each year, plus a fixed margin that depends on loan type:
- Undergraduate loans: 10-year Treasury yield + 2.05 percentage points
- Graduate loans: 10-year Treasury yield + 3.60 percentage points
- PLUS loans: 10-year Treasury yield + 4.60 percentage points
For the 2026-2027 cycle, the relevant 10-year Treasury auction (held May 12, 2026) priced at 4.468%. Adding each margin gives 6.518% (rounds to 6.52%), 8.068% (rounds to 8.07%), and 9.068% (rounds to 9.07%) — matching the official published rates. This formula also explains why undergraduate, graduate, and PLUS rates always move together and by the same amount: they share the same Treasury yield input and only the margin differs.
There are also statutory caps that prevent rates from climbing indefinitely regardless of where Treasury yields go: 8.25% for undergraduate loans, 9.50% for graduate loans, and 10.50% for PLUS loans. The 2026-2027 rates remain well below these ceilings.
What This Means for Your Monthly Payment
A higher rate means more interest accrues on the same loan balance, which raises either your monthly payment (on a standard term) or your total interest paid (on an income-driven plan). For example, on a $30,000 undergraduate loan balance, moving from 6.39% to 6.52% adds a small amount to every month’s interest accrual — it looks minor per month but compounds over a 10-year repayment term. Rather than estimate by hand, enter your actual loan amount, new rate, and term into the student loan calculator to see your exact monthly payment, or use the loan amortization calculator to see how much of each payment goes to interest versus principal over time.
Origination Fees Also Apply
Beyond interest, federal loans carry an upfront origination fee deducted from the disbursed amount:
- Direct Subsidized/Unsubsidized Loans: 1.057% of the loan amount
- Direct PLUS Loans: 4.228% of the loan amount
These fees mean the amount you actually receive is slightly less than what you borrow, but you’re still responsible for repaying the full principal — worth factoring in when you’re estimating how much to borrow for the year.
Don’t Miss the Autopay Discount Deadline
Borrowers who enroll in automatic payments can qualify for a 1.00% interest rate discount on federal loans — but only if you sign up by the enrollment deadline announced for this cycle, September 30, 2026. Missing that window means paying the full published rate for the life of the loan, so it’s worth setting up autopay as soon as your loan enters repayment.
Quick summary: 2026-2027 federal rates are 6.52% (undergrad), 8.07% (grad), and 9.07% (PLUS) — fixed for the life of the loan, plus origination fees of 1.057% (Direct) or 4.228% (PLUS). Enroll in autopay by September 30, 2026 for a 1.00% rate discount.
Frequently Asked Questions
What is the federal student loan interest rate for 2026-2027? 6.52% for undergraduate Direct Loans, 8.07% for graduate Direct Unsubsidized Loans, and 9.07% for Direct PLUS Loans, for any loan first disbursed between July 1, 2026 and June 30, 2027.
Will my rate change next year if I already have a loan? No. Federal student loan rates are fixed for the life of each loan at the rate in effect when it was disbursed. Only new loans taken out after July 1, 2026 get the new 2026-2027 rates.
How are federal student loan rates calculated? By law, rates equal the 10-year Treasury note yield from the last auction before June 1, plus a fixed margin: 2.05 points for undergraduate loans, 3.60 points for graduate loans, and 4.60 points for PLUS loans, subject to statutory caps of 8.25%, 9.50%, and 10.50% respectively.
Do federal loans still charge an origination fee? Yes. Direct Subsidized and Unsubsidized Loans carry a 1.057% origination fee, and Direct PLUS Loans carry a 4.228% fee, both deducted from the loan proceeds before disbursement.
How can I lower my student loan interest rate? Enroll in automatic payments to qualify for a 1.00% rate discount (enrollment deadline September 30, 2026 for this cycle), or consider refinancing with a private lender if you no longer need federal protections like income-driven repayment or forgiveness programs — though refinancing converts federal loans to private ones permanently.
The Bottom Line
Federal student loan rates for 2026-2027 are up slightly across every loan type — 6.52% for undergrad, 8.07% for grad, and 9.07% for PLUS — driven by a modest rise in Treasury yields, not a policy change. The rate you’re assigned is locked in for the life of the loan, so it’s worth borrowing only what you need this cycle. Plug your numbers into the student loan calculator to see your new monthly payment, and use the loan amortization calculator to map out your full payoff timeline and total interest cost.