Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program

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Published

March 2, 2026

Issuing agencies

Education Department

Abstract

The Chief Operating Officer for Federal Student Aid announces the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS Loans) made under the William D. Ford Federal Direct Loan (Direct Loan) Program, Assistance Listing Number 84.268, with first disbursement dates on or after July 1, 2025, and before July 1, 2026.

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<title>Federal Register, Volume 91 Issue 40 (Monday, March 2, 2026)</title>
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[Federal Register Volume 91, Number 40 (Monday, March 2, 2026)]
[Notices]
[Pages 10084-10086]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04065]

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DEPARTMENT OF EDUCATION

Annual Notice of Interest Rates for Fixed-Rate Federal Student
Loans Made Under the William D. Ford Federal Direct Loan Program

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice.

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SUMMARY: The Chief Operating Officer for Federal Student Aid announces
the interest rates for Federal Direct Stafford/Ford Loans (Direct
Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans
(Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS
Loans) made under the William D. Ford Federal Direct Loan (Direct Loan)
Program, Assistance Listing Number 84.268, with first disbursement
dates on or after July 1, 2025, and before July 1, 2026.

FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of
Education, 400 Maryland Avenue SW, Washington, DC 20202. Telephone:
202-377-4174 or by email: <a href="/cdn-cgi/l/email-protection#e5919784938c96cb9691909789849082968a8ba58081cb828a93"><span class="__cf_email__" data-cfemail="daaea8bbacb3a9f4a9aeafa8b6bbafbda9b5b49abfbef4bdb5ac">[email&#160;protected]</span></a>.
If you are deaf, hard of hearing, or have a speech disability and
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: Direct Subsidized Loans, Direct Unsubsidized
Loans, Direct PLUS Loans, and Direct Consolidation Loans (collectively
referred to as ``Direct Loans'') may have either fixed or variable
interest rates, depending on when the loan was first disbursed or, in
the case of a Direct Consolidation Loan, when the application for the
loan was received. Direct Subsidized Loans, Direct Unsubsidized Loans,
and Direct PLUS Loans first disbursed on or after July 1, 2006, and
Direct Consolidation Loans for which the application was received on or
after February 1, 1999, have fixed interest rates that apply for the
life of the loan. Direct Subsidized Loans, Direct Unsubsidized Loans,
and Direct PLUS Loans first disbursed before July 1, 2006, and Direct
Consolidation Loans for which the application was received before
February 1, 1999, have variable interest rates that are determined
annually and are in effect during the period from July 1 of one year
through June 30 of the following year.
This notice announces the fixed interest rates for Direct
Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans with
first disbursement dates on or after July 1, 2025, and before July 1,
2026, and provides interest rate information for other fixed-rate
Direct Loans. Interest rate information for variable-rate Direct Loans
is announced in a separate Federal Register notice. Fixed-rate Direct
Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans
first disbursed on or after July 1, 2013.
Section 455(b) of the Higher Education Act of 1965, as amended
(HEA) (20 U.S.C. 1087e(b)), includes formulas for determining the
interest rates for all Direct Subsidized Loans, Direct Unsubsidized
Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013.
The interest rate for these loans is a fixed rate that is determined
annually for all loans first disbursed during any 12-month period
beginning on July 1 and ending on June 30. The rate is equal to the
high yield of the 10-year Treasury Notes auctioned at the final auction
held before June 1 of that 12-month period, plus a statutory add-on
percentage that varies depending on the loan type and, for Direct
Unsubsidized Loans, whether the loan was made to an undergraduate or
graduate student. The calculated interest rate may not exceed a maximum
rate specified in the HEA. If the interest rate formula results in a
rate that exceeds the statutory maximum rate, the rate is the statutory
maximum rate. Loans first disbursed during different 12-month periods
that begin on July 1 and end on June 30 may have different interest
rates, but the rate determined for any loan is a fixed interest rate
for the life of the loan.
On May 6, 2025, the United States Treasury Department held a 10-
year Treasury Note auction that resulted in a high yield of 4.342
percent, rounded to 4.34 percent.
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\1\ Graduate and professional students are not eligible to
receive Direct Subsidized Loans.
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Chart 1 shows the fixed interest rates for Direct Subsidized Loans,
Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or
after July 1, 2025, and before July 1, 2026.

Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, and DIRECT Plus Loans First Disbursed on or After
07/01/2025 and Before 07/01/2026
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10-Year
treasury note Add-on Maximum Fixed
Loan type Borrower type high yield 05/ (%) rate (%) interest
6/2025 (%) rate (%)
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Direct Subsidized Loans, Direct Undergraduate students.. 4.34 2.05 8.25 6.39
Unsubsidized Loans.
Direct Unsubsidized Loans \1\......... Graduate and 4.34 3.60 9.50 7.94
professional students.
Direct PLUS Loans..................... Parents of dependent 4.34 4.60 10.50 8.94
undergraduate students.
Graduate and
professional students.
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[[Page 10085]]

For reference, Chart 2 compares the fixed interest rates for Direct
Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans
first disbursed during the period July 1, 2025, through June 30, 2026,
with the fixed interest rates for loans first disbursed during each
previous 12-month period from July 1, 2013, through June 30, 2025.

Chart 2--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2013 and Before 07/01/2026
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First disbursed Fixed interest rates (%)
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Direct Subsidized Loans; Direct Unsubsidized Loans Federal Register notice
On/after Before Direct Unsubsidized Loans (graduate or Direct PLUS
(undergraduate students) professional students) Loans
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07/01/2025................................... 07/01/2026 6.39 7.94 8.94 N/A.
07/01/2024................................... 07/01/2025 6.53 8.08 9.08 89 FR 68878 (August 28, 2024).
07/01/2023................................... 07/01/2024 5.50 7.05 8.05 88 FR 82863 (November 27, 2023).
07/01/2022................................... 07/01/2023 4.99 6.54 7.54 87 FR 50326 (August 16, 2022).
07/01/2021................................... 07/01/2022 3.73 5.28 6.28 86 FR 44003 (August 11, 2021).
07/01/2020................................... 07/01/2021 2.75 4.30 5.30 85 FR 48229 (August 10, 2020).
07/01/2019................................... 07/01/2020 4.53 6.08 7.08 85 FR 2417 (January 15, 2020).
07/01/2018................................... 07/01/2019 5.05 6.60 7.60 83 FR 53864 (October 25, 2018).
07/01/2017................................... 07/01/2018 4.45 6.00 7.00 82 FR 29062 (June 27, 2017).
07/01/2016................................... 07/01/2017 3.76 5.31 6.31 81 FR 38159 (June 13, 2016).
07/01/2015................................... 07/01/2016 4.29 5.84 6.84 80 FR 42488 (July 17, 2015).
07/01/2014................................... 07/01/2015 4.66 6.21 7.21 79 FR 37301 (July 1, 2014).
07/01/2013................................... 07/01/2014 3.86 5.41 6.41 78 FR 59011 (September 25, 2013).
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Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and
Direct PLUS Loans First Disbursed on or After July 1, 2006, and Before
July 1, 2013
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\2\ Effective for loan periods beginning on or after July 1,
2012, graduate and professional students are no longer eligible to
receive Direct Subsidized Loans.

Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS
Loans first disbursed on or after July 1, 2006, and before July 1,
2013, have fixed interest rates that are specified in section 455(b) of
the HEA (20 U.S.C. 1087e(b)). Chart 3 shows the interest rates for
these loans.

Chart 3--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After
07/01/2006 and Before 07/01/2013
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First First
Loan type Borrower type disbursed on/ disbursed Interest rate
after before (%)
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Subsidized......................... Undergraduate students..... 07/01/2011 07/01/2013 3.40
Subsidized......................... Undergraduate students..... 07/01/2010 07/01/2011 4.50
Subsidized......................... Undergraduate students..... 07/01/2009 07/01/2010 5.60
Subsidized......................... Undergraduate students..... 07/01/2008 07/01/2009 6.00
Subsidized......................... Undergraduate students..... 07/01/2006 07/01/2008 6.80
Subsidized......................... Graduate or professional 07/01/2006 \2\ 07/01/2012 6.80
students.
Unsubsidized....................... Undergraduate and graduate 07/01/2006 07/01/2013 6.80
or professional students.
PLUS............................... Graduate or professional 07/01/2006 07/01/2013 7.90
students and parents of
dependent undergraduate
students.
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Fixed-Rate Direct Consolidation Loans

Section 455(b) of the HEA specifies that all Direct Consolidation
Loans for which the application was received on or after February 1,
1999, have a fixed interest rate that is equal to the weighted average
of the interest rates on the loans consolidated, rounded to the nearest
higher one-eighth of one percent. For Direct Consolidation Loans for
which the application was received on or after February 1, 1999, and
before July 1, 2013, the interest rate may not exceed 8.25 percent.
However, under section 455(b) of the HEA, the 8.25 percent interest
rate cap does not apply to Direct Consolidation Loans made based on
applications received on or after July 1, 2013. Chart 4 shows the
interest rates for fixed-rate Direct Consolidation Loans.

Chart 4--Direct Consolidation Loans Made Based on Applications Received
on or After 02/01/1999
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Maximum
Application received Interest rate (%) interest rate
(%)
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On/after 07/01/2013............... Weighted average of None
the interest rates
on the loans
consolidated,
rounded to the
nearest higher one-
eighth of one
percent.
On/after 02/01/1999 and before 07/ (same as above)..... 8.25
01/2013.
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[[Page 10086]]

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Program Authority: 20 U.S.C. 1087a, et seq.

Richard Lucas,
Acting Chief Operating Officer, Federal Student Aid.
[FR Doc. 2026-04065 Filed 2-27-26; 8:45 am]
BILLING CODE 4000-01-P

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