Student Loan Rates Increase Slightly
Attention high school seniors, continuing college students, and all of their parents: In news coming out of the U.S. Department of the Treasury today, we now know what federal student loan interest rates will be for the upcoming school year. For students and parents borrowing loans between July 1, 2026 and June 30, 2027, interest rates will be as follows:
- Subsidized and Unsubsidized Direct Loans for undergraduate students: 6.52%
- Unsubsidized Direct Loans for graduate students: 8.07%
- Direct PLUS Loans for graduate student and parents of undergraduate students: 9.07%
Note that these new interest rates apply only to loans borrowed for the 2026/27 academic year. Previously borrowed federal student loans are unaffected, and the existing interest-free forbearance of federal loans remains in effect until August 31. Current graduate PLUS borrowers can continue to borrow under the federal program. As always, students and parents should attempt to reduce borrowing as much as possible, by saving in advance, maximizing scholarship funding, and utilizing interest-free tuition payment plans.
