As of August 13, 2026, the current federal student loan interest rate for undergraduate Direct Subsidized and Unsubsidized Loans is 6.53% for loans disbursed between July 1, 2026, and June 30, 2027. For graduate or professional Direct Unsubsidized Loans, the rate is 8.08%, and for Direct PLUS Loans (for parents and graduate students), the rate is 9.08%. These rates are fixed for the life of the loan, meaning they will not change over time.
How Federal Student Loan Rates Are Set
The U.S. Department of Education sets federal student loan interest rates each year based on the high yield of the 10-year Treasury note at the final auction held before June 1. The rates are then adjusted by a statutory formula for each loan type. This process ensures rates reflect current market conditions while remaining predictable for borrowers.
Because rates are fixed, your monthly payment stays the same for the entire repayment term. This provides stability compared to private loans, which often have variable rates.
Current Rates for the 2026-27 Academic Year
Here is a breakdown of the current federal student loan interest rates for loans first disbursed on or after July 1, 2026, and before July 1, 2027:
| Loan Type | Interest Rate | Who It’s For |
|---|---|---|
| Direct Subsidized Loans | 6.53% | Undergraduate students with financial need |
| Direct Unsubsidized Loans (Undergraduate) | 6.53% | Undergraduate students (no financial need required) |
| Direct Unsubsidized Loans (Graduate) | 8.08% | Graduate or professional students |
| Direct PLUS Loans (Parent or Grad) | 9.08% | Parents of dependent undergrads or graduate students |
These rates apply to new loans only. If you already have federal loans from previous years, your rate is fixed at the rate you originally borrowed at, which may be higher or lower than the current rate.
Why the Rate Matters for Your Repayment
A higher interest rate means you will pay more over the life of the loan. For example, a $10,000 undergraduate loan at 6.53% with a 10-year repayment term will accrue about $3,600 in interest over that period. In contrast, the same loan at 5.00% would accrue about $2,700. Understanding your rate helps you plan your budget and decide how much to borrow.
To minimize interest costs, consider making payments while you are still in school, even if they are small. Interest on unsubsidized loans accrues from the day the loan is disbursed, so paying it off early reduces the total amount you owe.
How to Check Your Loan’s Interest Rate
Your exact interest rate is listed on your loan disclosure statement, which you receive when you first take out the loan. You can also log in to your account on the Federal Student Aid website (studentaid.gov) to see all your loans, their types, and their interest rates. Always verify your rate before making financial decisions.
If you have multiple federal loans, each may have a different rate. Knowing each rate helps you prioritize which loans to pay off first—typically, you should target the highest-rate loan first to save money.
Actionable Tips for Borrowers
- Borrow only what you need, not the maximum amount offered.
- Set up automatic payments to get a 0.25% interest rate reduction (if your servicer offers it).
- Make interest-only payments while in school to prevent capitalization.
- Consider loan forgiveness programs if you work in public service or teaching.
- Compare your federal loan rate with private loan rates, but remember federal loans offer more protections.
What About Older Loans?
If you borrowed before July 1, 2026, your interest rate is fixed at the rate that was in effect when you signed your promissory note. For example, loans disbursed in the 2025-26 academic year have rates of 6.53% (undergraduate), 8.08% (graduate), and 9.08% (PLUS) as well—because those rates were also set in June 2025. However, rates from earlier years may be lower or higher. Always check your specific loan records.
When Do Rates Change?
Rates are set annually and take effect on July 1 each year. They remain in effect for loans disbursed through June 30 of the following year. If you are planning to borrow for the 2027-28 school year, new rates will be announced in June 2027. Staying informed about these changes can help you decide when to borrow if you have flexibility.
Final Summary
As of August 13, 2026, the current federal student loan interest rates are 6.53% for undergraduate loans, 8.08% for graduate loans, and 9.08% for PLUS loans. These fixed rates apply to loans disbursed between July 1, 2026, and June 30, 2027. Always verify your own loan terms and consider making extra payments to reduce total interest. For the most accurate and personalized information, contact your loan servicer or visit the Federal Student Aid website.
Frequently Asked Questions
What is the current federal student loan interest rate for undergraduate loans?
As of August 13, 2026, the rate for undergraduate Direct Subsidized and Unsubsidized Loans is 6.53% for loans disbursed between July 1, 2026, and June 30, 2027.
What is the current federal student loan interest rate for graduate loans?
For graduate or professional students, the rate on Direct Unsubsidized Loans is 8.08% for the same period.
What is the current federal student loan interest rate for parent PLUS loans?
Direct PLUS Loans for parents or graduate students carry a rate of 9.08% for loans disbursed between July 1, 2026, and June 30, 2027.
Will my federal student loan interest rate change over time?
No, federal student loan rates are fixed for the life of the loan. Your rate is set when you first borrow and does not change, even if market rates go up or down.
How can I find the exact interest rate on my existing federal student loans?
Log in to your Federal Student Aid account at studentaid.gov to see each loan’s type, disbursement date, and interest rate, or check your original loan disclosure statement.
