Federal Student Loan Interest Rates 2025-26 and 2026-27 (Real ED Rates)

Disclaimer: Interest rates and loan limits for federal student loans are set by the U.S. Department of Education under the Higher Education Act and can change each award year. The figures below are the official fixed rates published by Federal Student Aid for loans first disbursed in the stated periods. Your own rate depends on your loan type and the date your loan was first disbursed. This is general information, not financial advice—confirm your exact rate on your loan documents and at StudentAid.gov.

Federal Direct Loans have fixed interest rates set once a year by the U.S. Department of Education, based on the spring auction of 10-year Treasury notes plus a statutory add-on. The rate is fixed for the life of the loan. The rate you get depends on your loan type and the date the loan was first disbursed, not on when you apply.

Official Fixed Rates by Award Year

An award year runs July 1 to June 30. Rates below are for new Direct Loans first disbursed in each period (source: Federal Student Aid / U.S. Department of Education).

Loan Type	2024-25 (Jul 1 2024 - Jun 30 2025)	2025-26 (Jul 1 2025 - Jun 30 2026)	2026-27 (Jul 1 2026 - Jun 30 2027)
Direct Subsidized & Unsubsidized (Undergraduate)	6.53%	6.39%	6.52%
Direct Unsubsidized (Graduate or Professional)	8.08%	7.94%	8.07%
Direct PLUS (Parents & Graduate/Professional)	9.08%	8.94%	9.07%

Note: A common point of confusion is the undergraduate rate. For the 2024-25 award year the undergraduate Direct Loan rate was 6.53%; for 2025-26 it is 6.39%; for 2026-27 it is 6.52%. If you borrowed in an earlier year, your rate is the one that applied to your first disbursement date and does not change afterward.

Annual & Aggregate Loan Limits (Direct Subsidized/Unsubsidized)

Congress sets statutory borrowing limits. These are the published annual and total (aggregate) limits:

Year / Status	Dependent Undergraduate (annual)	Independent Undergraduate (annual)
First year (Freshman)	$5,500 (max $3,500 subsidized)	$9,500 (max $3,500 subsidized)
Second year (Sophomore)	$6,500 (max $4,500 subsidized)	$10,500 (max $4,500 subsidized)
Third year and beyond (Junior/Senior)	$7,500 (max $5,500 subsidized)	$12,500 (max $5,500 subsidized)
Aggregate (total) limit	$31,000 (max $23,000 subsidized)	$57,500 (max $23,000 subsidized)

Graduate or professional students may borrow up to $20,500 per year in Direct Unsubsidized Loans, with a $138,500 aggregate limit (which includes any undergraduate borrowing). Parent PLUS and Grad PLUS limits are set by the school's cost of attendance minus other aid.

Origination Fees

For Direct Loans first disbursed on or after October 1, 2020, the upfront origination fee is 1.057% for Direct Subsidized and Unsubsidized Loans and 4.228% for Direct PLUS Loans. The fee is deducted from each disbursement, so the amount you receive is slightly less than the loan amount you borrow.

Repayment Plans

Most federal loans enter repayment after a grace period. Standard repayment is 10 years. Income-Driven Repayment (IDR) plans have existed under names such as IBR, PAYE, and others; plan availability and terms change over time and some have been subject to litigation. Always confirm the plans currently available to you on StudentAid.gov before relying on any specific plan.

Estimate Your Payment

Use our Student Loan Repayment Calculator with the correct rate for your disbursement year to estimate your monthly payment and total interest. For the official, current rates see StudentAid.gov.