Federal Student Loan Rates Rise to 6.52%-9.07% for 2026-27 as Treasury Yield Hits 4.47%
Updated
Updated · USA TODAY · May 30
Federal Student Loan Rates Rise to 6.52%-9.07% for 2026-27 as Treasury Yield Hits 4.47%
2 articles · Updated · USA TODAY · May 30
Undergraduate federal loans are projected at 6.52% for 2026-27, with graduate loans at 8.07% and Parent PLUS loans at 9.07%, each up 10 basis points from the prior academic year.
A 4.47% yield at May's 10-year Treasury auction — up from 4.34% a year earlier — drove the increase because federal student loan rates are set by that yield plus fixed congressional margins.
Experts still view undergraduate federal loans as a solid first option because rates are relatively favorable, borrowing limits add safety, and federal protections such as deferment and forbearance remain available.
Parent and graduate borrowers may find better deals elsewhere: private lenders are offering roughly 3% to 7% for strong-credit parents, and even rates near 9% can compete once Parent PLUS fees are included.
Families are being urged to exhaust grants, scholarships, employer aid and FAFSA first, especially as Trump administration caps on some federal borrowing could push more demand toward private student loans.
As federal student aid shrinks, are private banks now the primary gatekeepers for Americans pursuing higher education?
For 7 million borrowers, the SAVE plan is ending. What does the future of affordable student loan repayment look like?
With new caps on federal student loans, will America soon face a shortage of doctors, lawyers, and other essential professionals?