What changed: Fixed rates on federal Direct loans for money borrowed between 1 July 2026 and 30 June 2027 went up. Undergraduate loans are now 6.52%, graduate loans 8.07%, and PLUS loans 9.07% — fixed for the life of the loan.
What it means if you moved here: Two very different situations. On an F-1 or most temporary visas, you generally can’t get these federal loans at all — you’re looking at private loans, usually needing a US cosigner. As a green card holder, you’re treated like a citizen for federal aid: file the FAFSA and these are your rates.
The numbers
| Undergraduate Direct | 6.52% fixed |
| Graduate Direct | 8.07% fixed |
| Direct PLUS (grad & parent) | 9.07% fixed |
| PLUS origination fee | 4.228% |
| Applies to | Loans disbursed 1 Jul 2026 – 30 Jun 2027 |
Why it went up: These rates are set each year from the May 10-year Treasury auction (4.468% this year) plus a fixed margin, and never change once your loan is disbursed.
[Editor adds the human layer here — a borrower’s story or an advisor quote — before publishing.]
What to do next:
- Green card holder heading to school? File the FAFSA — federal loans at these rates usually beat private ones.
- On an F-1? Check whether your school accepts a private loan without a US cosigner — most don’t.
- Borrowing for a child? Weigh the 9.07% PLUS loan plus the 4.228% fee against a private parent loan first.
Primary source: U.S. Dept of Education — 2026–27 Direct Loan interest rates
Figures verified 12 September 2026.
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