Federal Student Aid, the Education Department office that administers federal student financial aid, has published its annual notice of interest rates for variable-rate loans made under the William D. Ford Federal Direct Loan Program. The rates announced in the notice are in effect from July 1, 2026, through June 30, 2027. The notice appeared in the Federal Register on September 10, 2026, as document 2026-18494.
Loans covered by the notice
The notice sets rates for three categories of loans with first disbursement dates before July 1, 2006: Federal Direct Stafford/Ford Loans, also called Direct Subsidized Loans; Federal Direct Unsubsidized Stafford/Ford Loans, or Direct Unsubsidized Loans; and Federal Direct PLUS Loans, known as Direct PLUS Loans. It also covers Federal Direct Consolidation Loans for which the application was received before February 1, 1999. The program carries Assistance Listing Number 84.268, and the filing is designated as a notice.
Interest rates for 2026-27
For Direct Subsidized and Direct Unsubsidized Loans first disbursed on or after July 1, 1998, and before July 1, 2006, the notice sets the rate at 5.38 percent during in-school, grace, and deferment periods, and 5.98 percent in any other repayment status. For the same loan types first disbursed on or after July 1, 1995, and before July 1, 1998, the rate is 6.18 percent during in-school, grace, and deferment periods, and 6.78 percent in any other status. For loans first disbursed before July 1, 1995, the rate is 6.78 percent. Direct PLUS Loans first disbursed on or after July 1, 1998, and before July 1, 2006, carry a rate of 6.78 percent. Direct PLUS Loans first disbursed before July 1, 1998, carry a rate of 7.09 percent, based on the weekly average of the one-year constant maturity Treasury yield. For Direct Consolidation Loan components with applications received on or after October 1, 1998, and before February 1, 1999, the rate is 5.98 percent.
Official text
The Government Publishing Office has issued the official version of the notice as a Federal Register PDF. The Federal Register version is the authoritative text of the annual rate announcement.