Federal Student Loan Interest Rates 2026-27: Rates, Fees and What $10,000 Costs

Federal Direct Loans first disbursed July 1, 2026 to June 30, 2027 carry fixed rates of 6.52% (undergraduate), 8.07% (graduate unsubsidized) and 9.07% (PLUS), per studentaid.gov on October 20, 2026. On a $10,000 loan over ten years, the 6.52% loan is the lowest-cost of the three: $113.65 a month, $3,637.97 in interest and a $105.70 loan fee.

Financeradar data: across the 14 personal loans on our best personal loans page, published APR floors run from 5.96% to 11.99% and ceilings from 18.49% to 35.99% (dated Oct 14, 2026 on that page), while the federal table prints one fixed interest rate per loan type. Those are different measures, so we do not rank one against the other.

Rates and fees are from the studentaid.gov interest rates page, and the Department of Education's rate announcement GENERAL-26-33 confirms the rates, both read October 20, 2026. The last column is our arithmetic, explained below.

What does a $10,000 federal student loan cost over ten years?

The example loan is repaid in 120 equal monthly payments, the 10-year maximum that the definitions page lists for the Tiered Standard Plan on total Direct Loan balances under $25,000. Per the repayment plans page, a servicer places a borrower on that plan when the loan was disbursed on or after July 1, 2026 and no plan is picked. The payment is P × r ÷ (1 - (1 + r)^-120), where P is the amount borrowed and r is the annual rate divided by 12. P is the full amount borrowed, because studentaid.gov says you repay everything you borrowed, not only the cash you receive after the fee. Servicers apply daily interest, so their figures can differ slightly, and we do not predict which repayment plan any reader will use.

The in-school column assumes one disbursement held four years at simple daily interest (the annual rate divided by 365.25, as the page's formula does), not capitalised, and it leaves out the six-month grace period. Unpaid, that interest is owed on top of the repayment interest, and if it capitalises the balance grows and every later figure rises. Interest comes from the unrounded payment, so 120 times a rounded payment can differ by up to about 60 cents.

Each row has a weakness worth a number:

• Undergraduate Direct Subsidized Loan. It is the lowest-cost row here: the lowest rate, and the Department of Education pays the interest while you are in school at least half-time. The catch is size and eligibility: only undergraduates with financial need qualify, and a dependent first-year undergraduate can borrow at most $5,500 in Direct Loans a year, no more than $3,500 of it subsidized (limits page last updated Aug 24, 2026; the $5,500 limit is higher for independent students and for dependents whose parent cannot get a PLUS loan, and the $3,500 subsidized cap is the same).
• Undergraduate Direct Unsubsidized Loan. Repayment costs the same as the subsidized loan, but interest runs from the first disbursement at about $1.79 a day on the example loan. The page notes you can choose to pay that interest while in school.
• Graduate or professional Direct Unsubsidized Loan. The rate sits 1.55 points above the undergraduate rate, so ten-year interest is $965.76 higher on the same loan, and interest accrues in every period at about $2.21 a day.
• Direct PLUS Loan. The 4.228% fee is exactly four times the fee on the other rows, so the example loan loses $422.80 up front, and fee plus ten-year interest is $1,925.72 above the undergraduate row. PLUS also involves a credit check: the page says borrowers must not have an adverse credit history and lists extra requirements for those who do. It fits parents of dependent undergraduates and graduate students under the limited exception.

Why do the 2026-27 rates differ by loan type?

Federal law, not the Department of Education, sets the rates, through a formula in the Higher Education Act. The Department's announcement says each rate is the 10-year Treasury note's high yield at the last auction before June 1, plus a fixed add-on. On May 12, 2026 that yield was 4.468%, and the add-ons are 2.05 points for undergraduate loans, 3.60 for graduate unsubsidized loans and 4.60 for PLUS loans, which rounds to the three rates in the table. The law also caps those rows at 8.25%, 9.50% and 10.50%.

Every row rose 0.13 points from 2025-26, when the Department's announcement DL-25-03 (posted May 30, 2025) listed 6.39%, 7.94% and 8.94% on a 4.342% Treasury yield. On the undergraduate example loan that adds $0.66 a month and $79.28 of interest over ten years. A rate stays fixed for the life of a loan, so a loan disbursed in an earlier window keeps its own rate and cannot be read off this table.

What is the loan fee on a federal student loan?

The fee is a percentage of the loan that comes out of each disbursement, so the money you receive is less than the amount you owe. For Direct Subsidized and Unsubsidized Loans first disbursed on or after October 1, 2020 and before October 1, 2027, the page lists 1.057%. For Direct PLUS Loans in the same window it lists 4.228%. Loans first disbursed from October 1, 2019 to before October 1, 2020 carry 1.059% and 4.236%; earlier loans differ. The fee table ends at October 1, 2027, so the page prints no fee for loans disbursed after it.

The page prints an interest rate and a separate fee, not an APR, which is why our scenario table adds the fee to the interest instead of folding it into a rate. Personal loan lenders print an APR that includes any origination fee, as our origination fee comparison explains.

What changed for graduate and parent borrowers in 2026?

Undergraduate annual limits did not change; the rules for graduate and parent borrowers did. These are the studentaid.gov pages' statements, with the definitions page last updated Aug 24, 2026.

• Grad PLUS. From July 1, 2026, graduate and professional students enrolling in a new program or school, or taking a first Direct Loan for their program, are not eligible for a Grad PLUS loan. Students enrolled in their program on June 30, 2026 who borrowed a Direct Loan for it before July 1, 2026 and have stayed enrolled can still borrow PLUS under a limited exception, for the shorter of three academic years or the rest of the program. The rate table still lists graduate students on the PLUS row, but only borrowers inside that exception can use it.
• Graduate and professional limits. For students outside the exception, the annual unsubsidized limit is $20,500 for graduate students (unchanged) and $50,000 for professional students. The aggregate limit is $100,000 for graduate students and $200,000 for professional students, less anything borrowed as a graduate student. The page adds that a federal court preliminarily stayed part of the professional degree definition on June 24, 2026, so check with your school which group applies.
• Parent PLUS. Parents outside the limited exception can borrow up to $20,000 a year, and $65,000 in total per dependent student across all parents. Parents inside the exception keep the old limit of the cost of attendance minus other aid, per the Parent PLUS page.

None of this changes a rate. It changes how many dollars a borrower can reach at it, and your school's financial aid office confirms what applies.

How do federal rates compare with personal loan APRs?

Our comparison, not a ranking: the 14 personal loans we track print APR floors from 5.96% to 11.99% and ceilings from 18.49% to 35.99%, and the lender decides where a borrower lands in that range. A federal loan prints one fixed rate per loan type with the fee listed separately, so the two are not the same measure. Studentaid.gov says federal rates and fees are generally lower than private student loan rates and fees, which describes the product class, not a quote for any borrower.

The private student lenders we checked print ranges or starting rates, not one rate, so we left them out of the tables above. The personal loans hub shows the lender-side rates we track.

What this page does not cover

We do not cover repayment plans or consolidation; the repayment plans page lists them. On tax, IRS Topic 456 says you may deduct the lesser of $2,500 or the student loan interest you actually paid in the year, with the deduction reduced and then eliminated as modified adjusted gross income rises (page reviewed Sept 24, 2026, written for tax year 2025). See our taxes hub for other tax pages.

Related reading: 529 plans compared covers saving for school, free credit score apps the credit file behind a PLUS application, and the best budgeting apps monthly cash planning. For cash set aside for tuition, compare where to put cash in 2026, the best high-yield savings accounts and our rate tracker.

How we compared

We read the rates, fees, limits and eligibility on the studentaid.gov pages linked above and on the Department of Education's two rate announcements on October 20, 2026, and we computed every cost figure ourselves with the formula above. Figures apply to loans first disbursed in the windows stated, and an older loan keeps its own rate and fee. Approval, eligibility and the amount offered are decided by your school and the Department of Education, and nothing here promises any of them. This is general information, not personalized financial advice, and it does not tell anyone to borrow, to pick a loan type or to choose a repayment plan. Financeradar may earn a commission from some links; it never affects rankings (how we make money).

Also read: subsidized and unsubsidized loans.

Cite this: Financeradar, "Federal Student Loan Interest Rates 2026-27: Rates, Fees and What $10,000 Costs", October 2026.

FAQ

What are the federal student loan interest rates for 2026-27?

For Direct Loans first disbursed July 1, 2026 to June 30, 2027, studentaid.gov lists 6.52% for undergraduate Direct Subsidized and Unsubsidized Loans, 8.07% for graduate or professional Direct Unsubsidized Loans and 9.07% for Direct PLUS Loans (read October 20, 2026). Each rate is fixed for the life of its loan, and loans first disbursed in other years keep the rate of their own window.

How much does a $10,000 federal student loan cost?

Over 120 monthly payments, interest is $3,637.97 at the undergraduate rate, $4,603.73 at the graduate unsubsidized rate and $5,246.59 at the PLUS rate, plus a loan fee taken from the money disbursed. These are our calculations on the printed rates. Interest that accrues during school on an unsubsidized loan is extra, and a different repayment plan changes the monthly figure.

What is the loan fee on a federal student loan?

Direct Subsidized and Unsubsidized Loans first disbursed from October 1, 2020 to before October 1, 2027 carry a 1.057% fee, and Direct PLUS Loans carry 4.228%, per studentaid.gov on October 20, 2026. The fee comes out of each disbursement, yet you repay the full amount borrowed, so the cash you receive is slightly less than the balance you owe.

Can graduate students still borrow Grad PLUS in 2026-27?

Only inside a limited exception. Studentaid.gov says graduate and professional students enrolling in a new program or school, or taking their first Direct Loan for the program, are not eligible from July 1, 2026. Students enrolled on June 30, 2026 who had borrowed a Direct Loan for the program before July 1, 2026 may borrow under a limited exception, for up to three academic years or the rest of the program, whichever is shorter. Your school decides eligibility.

Who pays the interest on a subsidized loan while I am in school?

The Department of Education pays the interest on a Direct Subsidized Loan while you are enrolled at least half-time, for the first six months after you leave school and during deferment. On a Direct Unsubsidized Loan you owe all the interest, from the first disbursement, and unpaid interest can be capitalised, which means it is added to the balance.