Student Loan Borrowers Get Bad News About Their Interest Rates Next Year
Summary
Federal student loan interest rates will go up for the 2026–27 school year starting July 1, making new loans more expensive. The increase will raise monthly payments and the total amount borrowers must repay over time.Key Facts
- Interest rates on new federal student loans will rise as of July 1, 2026.
- Undergraduate loan rates will increase from 6.39% to 6.52%.
- Graduate loan rates will increase from 7.94% to 8.07%.
- Parent PLUS loan rates will increase from 8.94% to 9.07%.
- These rates are fixed for the life of the loan and apply only to new loans.
- Rate increases are linked to rising yields on 10-year Treasury notes, influenced by inflation and government borrowing.
- Higher interest rates mean students and families will pay more money overall for education loans.
- Over 40 million Americans currently hold student loan debt and may face financial pressure from these changes.
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