If you are planning to pay for college or graduate school in the U.S., the interest rate on federal student loans just went up.
For loans first disbursed between July 1, 2026 and June 30, 2027, the new fixed rates are 6.52% for undergraduate Direct Loans, 8.07% for graduate Direct Loans, and 9.07% for Direct PLUS Loans.
The important part for immigrants is that your immigration status can determine whether you can get these federal loans in the first place.
If you are on an F-1 visa, you will generally not qualify for federal student aid. If you have recently become a green card holder, you generally have access to federal student aid on the same basis as a U.S. citizen.
Here is what that means in practice.
The rates for 2026-27
| Loan | Interest rate |
|---|---|
| Undergraduate Direct Loan | 6.52% fixed |
| Graduate Direct Loan | 8.07% fixed |
| Direct PLUS, graduate & parent | 9.07% fixed |
| PLUS origination fee | 4.228% |
| Applies to | Loans disbursed July 1, 2026 to June 30, 2027 |
These rates are fixed for the life of the loan. They do not increase or decrease later just because market interest rates change.
If you are on an F-1 visa
This is where immigration status makes a big difference.
Most F-1 students cannot use federal student loans, so these 6.52% and 8.07% rates are generally not available to you.
Instead, you may have to look at private student loans.
The problem is that private lenders often want a U.S. citizen or permanent resident as a cosigner. Some lenders offer options without one, but they are not available to everyone and the terms can be very different.
So if you are an international student starting school in the U.S., don’t assume that the federal loan rates you see online are rates you can actually get.
Check with your school’s financial aid office and ask specifically which private lenders they work with and whether a U.S. cosigner is required.
If you just got your green card
The situation changes significantly once you become a permanent resident.
As a green card holder, you are generally eligible for federal student aid on the same basis as a U.S. citizen, assuming you meet the other eligibility requirements.
That means you can file the FAFSA and potentially use federal Direct Loans.
For the 2026-27 academic year, that means the rates are:
- 6.52% for undergraduate Direct Loans
- 8.07% for graduate Direct Loans
- 9.07% for Direct PLUS Loans
If you have recently received your green card and are planning to start school, it is worth checking your federal aid eligibility before turning to private lenders.
Why did the rates go up?
Federal student loan rates are reset every year.
For 2026-27, the calculation starts with the May 10-year Treasury auction rate, which was 4.468%, and adds a fixed margin set by law.
Once a loan is disbursed, however, your rate is locked in for the life of that loan.
So the increase in the new academic year’s rates does not change the rate on a federal loan you already borrowed.
What about a Parent PLUS loan?
If you are borrowing for your child, the number to pay attention to is 9.07%.
That is the new fixed interest rate for Direct PLUS Loans for the 2026-27 period. There is also a 4.228% origination fee.
That makes PLUS loans considerably more expensive than undergraduate Direct Loans.
Before taking one, compare the total cost with the private alternatives available to you. Don’t look only at the headline interest rate, include the origination fee and the repayment terms.
What should you do?
If you recently got your green card and are heading to school: file the FAFSA and check your federal loan eligibility before looking at private loans.
If you are on an F-1: don’t assume you can get a federal Direct Loan. Ask your school about private lenders and whether they offer loans without a U.S. cosigner.
If you are borrowing for your child: compare the 9.07% PLUS rate and 4.228% origination fee with your other financing options before committing.
The rates are higher than last year’s rates, but the bigger question for immigrants is often not the rate itself. It is whether your immigration status gives you access to federal loans at all.
Sources: U.S. Department of Education, Federal Student Aid: 2026-27 Direct Loan rates · The College Investor
