Rates on New Student Loans Will Rise on July 1
New federal student loan rates will rise on July 1, 2026, for the 2026-27 academic year. Eligible Direct Loan borrowers using auto pay can receive a temporary 1-point interest rate cut through June 30, 2028. These changes occur alongside rising tuition and inflation.
What changed
Updated specific interest rate ranges, the end of Grad PLUS loans, and the duration of the auto pay discount.
Live updates
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Federal Student Loan Interest Rates to Increase July 1
confidence 80%New federal student loan rates will rise on July 1, 2026, for the 2026-27 academic year. Eligible Direct Loan borrowers using auto pay can receive a temporary 1-point interest rate cut through June 30, 2028. These changes occur alongside rising tuition and inflation.
What's confirmed:
- Interest rates for new federal student loans will increase on July 1, 2026.
- The rate increase affects new Direct Loans for the 2026-27 academic year.
Still unconfirmed:
- Eligible federal Direct Loan borrowers using auto pay get a temporary 1-point interest-rate cut from July 1, 2026, to June 30, 2028.
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New Student Loan Rates Set to Increase July 1
confidence 90%Interest rates for new student loans will rise on July 1. The Trump administration and the Education Department are implementing interest rate cuts for some borrowers. Certain benefits are available to those who enroll in auto pay.
What's confirmed:
- Interest rates on new student loans will rise on July 1.
- The Education Department is cutting student loan interest rates.
- The Trump administration is cutting student loan interest for qualifying borrowers.
Still unconfirmed:
- Borrowers can receive an interest rate cut by signing up for auto pay.
- The US student debt repayment system is being overhauled.
- Borrowers can act now to become eligible for a new repayment benefit.