Notice2026-04078
Annual Notice of Interest Rates for Variable-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
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 Loan), Assistance Listing Number 84.268, with first disbursement dates before July 1, 2006, and for Federal Direct Consolidation Loans (Direct Consolidation Loans) for which the application was received before February 1, 1999. The rates announced in this notice are in effect for the period July 1, 2025, through June 30, 2026.
Full Text
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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 10087-10089]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04078]
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DEPARTMENT OF EDUCATION
Annual Notice of Interest Rates for Variable-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
Loan), Assistance Listing Number 84.268, with first disbursement dates
before July 1, 2006, and for Federal Direct Consolidation Loans (Direct
Consolidation Loans) for which the application was received before
February 1, 1999. The rates announced in this notice are in effect for
the period July 1, 2025, through June 30, 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#afdbddced9c6dc81dcdbdaddc3cedac8dcc0c1efcacb81c8c0d9"><span class="__cf_email__" data-cfemail="790d0b180f100a570a0d0c0b15180c1e0a1617391c1d571e160f">[email 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 before July 1, 2006, and Direct
Consolidation Loans for which the application was received before
February 1, 1999, have variable interest rates. For these loans, a new
rate is determined annually and is in effect during the period from
July 1 of one year through June 30 of the following year.
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.
This notice announces the interest rates for variable-rate Direct
Loans that will apply during the period from July 1, 2025, through June
30, 2026. Interest rate information for fixed-rate Direct Loans is
announced in a separate notice published in the Federal Register.
Interest rates for variable-rate Direct Loans are determined in
accordance with formulas specified in section 455(b) of the Higher
Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)). The
formulas vary depending on loan type and when the loan was first
disbursed or, for certain Direct Consolidation Loans, when the
application for the loan was received. The HEA specifies a maximum
interest rate for these loan types. If the interest rate formula
results in a rate that exceeds the statutory maximum rate, the rate is
the statutory maximum rate.
Variable-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and
Direct PLUS Loans
For Direct Subsidized Loans and Direct Unsubsidized Loans with
first disbursement dates before July 1, 2006, and for Direct PLUS Loans
with first disbursement dates on or after July 1, 1998, and before July
1, 2006, the interest rate is equal to the lesser of--
(1) The bond equivalent rate of 91-day Treasury Bills auctioned at
the final auction held before the June 1 immediately preceding the 12-
month period to which the interest rate applies, plus a statutory add-
on percentage; or
(2) 8.25 percent (for Direct Subsidized Loans and Direct
Unsubsidized Loans) or 9.00 percent (for Direct PLUS Loans).
For Direct Subsidized Loans and Direct Unsubsidized Loans with
first disbursement dates on or after July 1, 1995, and before July 1,
2006, the statutory add-on percentage varies depending on whether the
loan is in an in-school, grace, or deferment status, or in any other
status. For all other loans, the statutory add-on percentage is the
same during any status.
The bond equivalent rate of 91-day Treasury Bills auctioned on May
27, 2025, is 4.36 percent.
For Direct PLUS Loans with first disbursement dates before July 1,
1998,
[[Page 10088]]
the interest rate is equal to the lesser of--
(1) The weekly average 1-year constant maturity Treasury yield, as
published by the Board of Governors of the Federal Reserve System, for
the last calendar week ending on or before the June 26 preceding the
12-month period to which the interest rate applies, plus a statutory
add-on percentage; or
(2) 9.00 percent.
The weekly average of the one-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal Reserve
System, for the last calendar week ending on or before June 26, 2025,
is 4.09 percent.
Variable-Rate Direct Consolidation Loans
A Direct Consolidation Loan may have up to three components,
depending on the types of loans that were repaid by the consolidation
loan and when the application for the consolidation loan was received.
The three components are called Direct Subsidized Consolidation Loans,
Direct Unsubsidized Consolidation Loans, and (only for Direct
Consolidation Loans made based on applications received before July 1,
2006) Direct PLUS Consolidation Loans. In most cases the interest rates
for variable-rate Direct Subsidized Consolidation Loans, Direct
Unsubsidized Consolidation Loans, and Direct PLUS Consolidation Loans
are determined in accordance with the same formulas that apply to
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS
Loans, respectively.
Interest Rate Charts
Charts 1 and 2 show the interest rate formulas used to determine
the interest rates for all variable-rate Direct Loans and the rates
that are in effect during the 12-month period from July 1, 2025,
through June 30, 2026.
Chart 1 shows the interest rates for loans with rates based on the
91-day Treasury Bill rate. Chart 2 shows the interest rates for loans
with rates based on the weekly average of the one-year constant
maturity Treasury yield.
Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, Direct Plus
Loans, and Direct Plus Consolidation Loans
[Interest rates based on 91-day Treasury Bill]
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Loan type Cohort........... 91-day T- Add-on (%) Maximum rate Interest rate 07/01/25 through 06/
Bill rate 05/ (%) 30/26 (%)
27/25 (%)
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Subsidized, Unsubsidized...... First disbursed 4.36 1.70 (in-school, 2.30 (any other 8.25 6.06 (in-school, 6.66 (any other
on/after 07/01/ grace, status). grace, status).
98 and before 07/ deferment). deferment).
01/06.
Subsidized Consolidation, First disbursed
Unsubsidized Consolidation. on/after 07/01/
98 and before 10/
01/98; or
Application
received before
10/01/98 and
first disbursed
on/after 10/01/
98.
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PLUS.......................... First disbursed 4.36 3.10 9.00 7.46
on/after 07/01/
98 and before 07/
01/06.
PLUS Consolidation............ First disbursed
on/after 07/01/
1998 and before
10/01/1998; or
Application
received before
10/01/98 and
first disbursed
on/after 10/01/
98.
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Subsidized, Unsubsidized, First disbursed 3.36 2.50 (in-school, 3.10 (any other 8.25 5.86 (in-school, 6.46 (any other
Subsidized Consolidation, on/after 07/01/ grace, status). grace, status).
Unsubsidized Consolidation. 95 and before 07/ deferment). deferment).
01/98.
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Subsidized, Unsubsidized, First disbursed 3.36 3.10 8.25 6.46
Subsidized Consolidation, before 07/01/95.
Unsubsidized Consolidation.
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Subsidized Consolidation, Application 3.36 2.30 8.25 5.66
Unsubsidized Consolidation, received on/
PLUS Consolidation. after 10/01/98
and before 02/01/
99.
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[[Page 10089]]
Chart 2--Direct Plus Loans and Direct Plus Consolidation Loans
[Interest rates based on weekly average of one-year constant maturity Treasury yield]
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Weekly average of 1-
year constant
maturity treasury Interest rate
Loan type Cohort yield for last Add-on Maximum 07/01/24
calendar week (%) rate (%) through 06/30/
ending on or before 25 (%)
06/26/24 (%)
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PLUS, PLUS Consolidation......... First disbursed 4.09 3.10 9.00 8.20
before 07/01/98.
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Accessible Format: On request to the program contact person listed
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities
can obtain this document in an accessible format. The Department will
provide the requestor with an accessible format that may include Rich
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file,
braille, large print, audiotape, or compact disc, or other accessible
format.
Electronic Access to This Document: The official version of this
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by the Department.
Program Authority: 20 U.S.C. 1087a et seq.
Richard Lucas,
Acting Chief Operating Officer Federal Student Aid.
[FR Doc. 2026-04078 Filed 2-27-26; 8:45 am]
BILLING CODE 4000-01-P
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