Federal student loan interest rates in the U.S. are expected to rise slightly for the 2026-27 academic year, according to an analysis shared with CNBC on Tuesday by higher education expert Mark Kantrowitz.
The projected increase would apply to federal student loans issued between July 1, 2026, and June 30, 2027. The federal government sets student loan interest rates once each year based partly on Treasury yields.
Federal student loan rates are typically fixed for the life of the loan, meaning new borrowers next academic year could face higher repayment costs over time, according to CNBC’s reporting on Tuesday.
Kantrowitz based his estimates on the U.S. Treasury Department’s May auction of the 10-year Treasury Note, where the high-yield rate reached 4.47% Tuesday.
Kantrowitz estimated undergraduate federal student loan rates could rise to 6.52% from 6.39%. Graduate student loan rates may increase to 8.07% from 7.94%, while Parent PLUS loan rates could climb to 9.07% from 8.94%.
The analysis showed borrowing $10,000 under the projected undergraduate rate would result in monthly payments of about $113.64 under a standard …
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