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Data Summary
The current (as of July 1, 2026) federal student loan interest rate for undergraduates is 6.52%.
Graduate and professional Direct Unsubsidized Loans have a fixed rate of 8.07%, while Direct PLUS Loans have a fixed rate of 9.07%.
Advertised private student loan fixed interest rates can range from 2.39% to 17.99%.
Advertised variable interest rates can start as low as 3.75% but can go above 17% throughout the loan.
Private lenders advertise student loan refinancing interest rates ranging from 3.94% to 13.99%.
In recent history, the highest federal student loan interest rate for undergraduates was 6.8% in 2006. The lowest was 2.75% in 2020.
In 2026-2027, federal graduate student loan interest rates were the second-highest ever since the current rate-setting formula took effect in 2013.
Today, U.S. student loan debt is roughly $1.66 trillion, according to the Federal Reserve Bank of New York, a negligible $6 billion decrease from the previous year.
If you've borrowed money to pay for college, you're probably familiar with how interest increases the amount you owe. Borrowers must pay interest — a certain percentage of the loan — on top of the borrowed amount.
This report lists current federal student loan rates, average interest rate ranges, and student loan refinance rates. It also answers some commonly asked questions about student loan interest rates, helping you plan how to make your college education more affordable.
Current Student Loan Interest Rates
Federal and private student loans may charge interest differently. Federal loans always charge a fixed interest rate, meaning it never changes over the loan term. Private student loans may offer fixed or variable rates, meaning the interest rate can change monthly.
Current Federal Student Loan Interest Rates
Federal loans for undergraduates, graduate students, and parents have different interest rates. The Federal Student Aid Office updates interest rates for all federal student loans every July.
| Type of Loan | Interest Rate (Fixed) |
|---|---|
| Undergraduate subsidized and unsubsidized student loans | 6.52% |
| Graduate or professional unsubsidized loans | 8.07% |
| Direct PLUS loans (for parents and graduate or professional students) | 9.07% |
Private Loan Interest Rates
Private student loan rates differ by lender and may depend on your credit, income, cosigner, repayment plan, and loan term.
As of July 2026, major lenders advertised fixed and variable rates ranging from roughly 2.39% to nearly 18%, although only the most creditworthy applicants qualified for the lowest rates.
What Is a Good Student Loan Interest Rate?
A competitive private student loan rate is generally one near the lower end of the rates for which you qualify after comparing several lenders. For context, the federal undergraduate rate is 6.52% for 2026-2027, while private lenders advertise broader ranges based on credit and loan terms.
Keep in mind that federal student loans have benefits unavailable to private loan borrowers, which can ease the burden of debt. For example:
Students don't pay interest on subsidized loans as long as they're in school.
Federal loans offer more flexible repayment options.
Borrowers with federal loans may qualify for debt cancellation through Public Service Loan Forgiveness or other programs.
For these reasons, it's generally wise to take full advantage of federal financial aid before turning to private loans.
Student Loan Refinance Rates
Borrowers may choose to refinance student loans with another lender to get a lower interest rate. Refinance rates vary from lender to lender, and they also depend on the borrower's credit history and the new loan's term length.
As of July 2026, a sampling of major private lenders showed fixed student loan refinance rates ranging from 3.94% to 9.99%, and variable rates starting at 5.74%.
Student Loan Fees
Interest rates aren't the only factor to consider when comparing student loans. Depending on the type of loan and lender, you may also have to pay fees that increase the overall cost. Federal student loans charge an upfront fee on most loans, while private lenders may charge additional fees such as origination, late, or returned payment fees. Reviewing these costs before you borrow can help you compare loans more accurately.
Current Federal Student Loan Fee
Most federal student loans include an upfront fee that's deducted from your loan before the funds are disbursed — i.e., sent to your school. The fee is a predetermined percentage of the loan total. As a result, you will receive slightly less than the full loan amount, though you're still responsible for repaying it.
| Loan Type | Fee |
|---|---|
| Undergraduate and Graduate, Subsidized and Unsubsidized Loans | 1.057% |
| Direct PLUS Loans | 4.228% |
Private Student Loan Fees
Some private lenders charge application, origination, or late payment fees. Other lenders who waive application or origination fees might still charge you for early, late, or returned payments. So, read your loan agreement carefully to know which fees you're subject to.
These are some of the most common fees you might find:
Application Fee: What it costs to get approved for a loan.
Origination Fee: A processing fee at the start of your loan term.
Late Payment Fee: A charge for missing your payment date —typically a percentage of your payment.
Returned Payment Fee: If the lender can't process your payment for some reason, for example, due to insufficient funds in your account.
Student Loan Interest Rates by Year
Federal undergraduate student loan interest rates have generally decreased since the 2007-2009 economic recession. The average interest rate for undergraduate federal loans over the past 15 years was about 4.7%.
From 2006 to 2013, the interest rates for graduate unsubsidized loans and PLUS loans remained unchanged. They stayed at 6.8% and 7.9%, respectively. The interest rates for these loans began fluctuating in the 2013-2014 academic year.
In 2024-2025, graduate and parent PLUS student loan interest rates were the highest they've ever been.
Why Is Student Loan Interest So High?
Student loan interest rates tend to reflect the market. Federal student loan interest rates are set annually by Congress using a formula based on the yield of the 10-year U.S. Treasury note.
Federal loan interest rates are the same for everyone, but private student loans can be higher for some people. In addition to market conditions, private student loan interest rates are set by lenders based on several factors, including:
The length of the loan: Longer terms may charge higher interest rates.
Your credit history: A better credit history can qualify you for a lower interest rate.
Your income: Private lenders want proof of income to ensure you can afford to repay them. Having a cosigner may help you qualify for a lower interest rate.
