Interest Rates on New Federal Student Loans to Slightly Increase

Last week, the U.S. Department of the Treasury released its annual auction results that are part of the calculation for new federal student loans. After a year of slight decline, interest rates on federal student loans will increase to levels similar to those in 2024–25 beginning July 1. Since 2013, interest rates on federal student loans have been determined the 10-year Treasury note auction plus a fixed percentage that varies by loan type (e.g., Subsidized Stafford, Unsubsidized Stafford, PLUS). 

The results of last week’s 10-year Treasury note auction will lead to an increase of about 13 basis points for federal student loans disbursed between July 1, 2026, and June 30, 2027. The interest rates are fixed for the life of the loan. 

The information below demonstrates the changes in federal student loan interest levels, showing rates by loan type for the academic years 2023-24 through 2026-27.

Direct Subsidized Loan (Undergraduate)

• 2023-24:  5.50%
• 2024-25:  6.53%
• 2025-26:  6.39%
• 2026-27:  6.52%

Direct Unsubsidized Loan (Undergraduate)

• 2023-24:  5.50%
• 2024-25:  6.53%
• 2025-26:  6.39%
• 2026-27:  6.52%

Direct Unsubsidized Loan (Graduate)

• 2023-24:  7.05%
• 2024-25:  8.08%
• 2025-26:  7.94%
• 2026-27:  8.07%

Direct PLUS Loan (Graduate and Parent)

• 2023-24:  8.05%
• 2024-25:  9.08%
• 2025-26:  8.94%
• 2026-27:  9.07%

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