Student Loan Interest Rates for 2026-2027 Announced: What Scholars Need to Know

Student Loan Interest Rates for 2026-2027 Announced: What Scholars Need to Know

Every Spring, the Federal government convenes to prospectively set loan rates for the coming fiscal year. After the May 12^th meeting, the prospective interest rates for 2026-2027 have been shared.

These figures show an increase from the previous year by about 13 basis points, or .13% across the board. As previously reported, the Graduate PLUS loan has now been phased out as a loan option in favor of uniformly providing the program for undergraduate and graduate students under the Direct PLUS Loan.

Here are 3 Things Every Student Should Know About Federal Loan Programs before the 2026-2027 School Year:

1. Loan rates are determined at the time the loan is distributed and are fixed. This means that your loan interest rate will not increase over time as rates are adjusted.
2. As of July 1, the maximum lifetime direct loan limit will be set at $65,000 per student, so students should be sure to understand their projected borrowing needs in subsequent years to avoid funding shortfalls.
3. Unsubsidized loans feature different annual limits for independent and dependent students. See the chart below for a breakdown.

This year also features broad changes to the programs offered by the government under OBBA legislation. To learn more about specific changes to programs, check out our recent blog post detailing policy changes that go into effect July 1.