Federal Direct Loan Interest Rates and Fees
New Federal Direct Loan Interest Rate Information
Congress passed and the President signed the Bipartisan Student Loan Certainty Act of 2013 (BSLCA), which ties federal student loan interest rates to financial markets. Under this act, interest rates will be determined each June for new loans made for the upcoming award year, which runs from July 1 to the following June 30. Interest rates are variable based on financial markets annually; however, the interest rate for an individual award year will be fixed for the life of that loan. As a result, the new interest rates make the Federal Direct Loans considered “variable-fixed” loans.
Effective as of July 1, 2026, under the One Big Beautiful Bill Act, Graduate PLUS loans remain available only to grandfathered students, provided they have remaining cost of attendance eligibility and meet credit approval requirements. Non-grandfathered students are no longer eligible to receive Graduate PLUS loans. Additionally, Parent PLUS loans for non-grandfathered students are limited up to $20,000 per a year and $65,000 total over the course of the student’s undergraduate education.
The following table provides interest rates and origination fees for the new Direct Loans made on or after July 1, 2026 and before July 1, 2027 for the 2026-2027 academic year.
| Loan Type | Interest Rate | Origination Fee |
| Direct Subsidized and Unsubsidized Loans (undergraduate) | 6.52% | 1.057% (on or after Oct. 1, 2026 and before Oct. 1, 2027) |
| Direct Unsubsidized Loans (graduate and professional) | 8.07% | 1.057% (on or after Oct. 1, 2026 and before Oct. 1, 2027) |
| Direct PLUS Loans (parent, graduate, and professional) | 9.07% | 4.228% (on or after Oct. 1, 2026 and before Oct. 1, 2027) |
The following table provides interest rates and origination fees for the new Direct Loans made on or after July 1, 2025 and before July 1, 2026 for the 2025-2026 academic year.
| Loan Type | Interest Rate | Origination Fee |
|---|---|---|
| Direct Subsidized and Unsubsidized Loans (undergraduate) | 6.39% | 1.057% (on or after Oct. 1, 2025 and before Oct. 1, 2026) |
| Direct Unsubsidized Loans (graduate) | 7.94% | 1.057% (on or after Oct. 1, 2025 and before Oct. 1, 2026) |
| Direct PLUS Loans (parent and graduate) | 8.94% | 4.228% (on or after Oct. 1, 2025 and before Oct. 1, 2026) |
If you would like more in-depth information about federal student loans, please review the Department of Education FAQs on the interest rates. View a list of prior year(s) interest rates.