College Loan Advice Student Loan Rates Increase Slightly Written by Robyn Stewarton May 19th, 2026 Prior to joining College Coach, I was a financial aid officer at the College of the Holy Cross and an education advisor at two TRIO program locations. I work with the Massachusetts Education Finance Authority (MEFA) to present paying for college workshops to hundreds of families across the state. I'm a graduate of UMass Amherst and have a master in counseling from Northeastern University. Learn More About Robyn student loan interest rates, student loans, 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. Meet our team of college finance experts, former financial aid officers who know the ins and outs of college financing. Meet The Team Related Resources Read | Posted on December 12th, 2025 SAVE Student Loan Repayment Plan to End Read | Posted on October 2nd, 2025 How the Federal Government Shutdown May Impact Federal Student Aid and Loan Repayment Read | Posted on July 8th, 2025 What Does One Big Beautiful Bill Mean for Families?
