The U.S. Department of Education has published its annual notice of variable interest rates for certain federal student loans made under the Federal Family Education Loan (FFEL) Program. The rates are effective July 1, 2026, through June 30, 2027.
No new loans have been made under the FFEL Program since June 30, 2010, but outstanding FFEL loans may have either fixed or variable interest rates. For loans with variable rates, the applicable rate is recalculated annually and can depend on the type of loan, when the loan was first disbursed, and, in some cases, the loan’s current status.
The notice covers variable rate:
- Federal Subsidized and Unsubsidized Stafford Loans
- Federal PLUS Loans
- Federal Supplemental Loans for Students (SLS)
- Federal Consolidation Loans
2026–27 Variable Rates
For the majority of variable rate FFEL loans, the annual rate is based on the 91 day Treasury bill rate from the final auction held before June 1, plus a statutory add on percentage. The applicable rate is generally the lesser of the calculated rate or a statutory maximum rate, which varies based on the loan type and when the loan was first disbursed.
The May 26, 2026 Treasury bill rate was 3.678%, rounded to 3.68%.
Among the 2026–27 rates included in the Department’s notice are:
- 5.38% for Stafford Loans first disbursed on or after July 1, 1998, and before July 1, 2006, while the borrower is in school, grace, or deferment
- 5.98% for those same Stafford Loans while in other statuses
- 6.78% for PLUS Loans first disbursed on or after July 1, 1998, and before July 1, 2006
- 6.18% for Stafford Loans first disbursed on or after July 1, 1995, and before July 1, 1998, while the borrower is in school, grace, or deferment
- 6.78% for those same Stafford Loans while in other statuses
- 6.78% for several other categories of older Stafford Loans
Rates for Older PLUS and SLS Loans
A different calculation applies to certain older PLUS and SLS Loans. These rates are based on the weekly average of the one year constant maturity Treasury yield for the applicable period, plus the statutory add on percentage, subject to the applicable maximum rate.
For 2026–27, the applicable Treasury yield was 3.99%, resulting in rates that include:
- 7.09% for certain PLUS Loans first disbursed before July 1, 1998
- 7.09% for certain SLS Loans
- 7.24% for PLUS and SLS Loans first disbursed before October 1, 1992
Converted Variable Rate Stafford Loans
The notice also provides rates for certain older Stafford Loans that originally carried fixed interest rates that were later converted to variable rates.
Depending on the loan cohort and original interest rate, the 2026–27 rates for these loans are 6.78% or 6.93%.
Federal Consolidation Loans
Variable rate Federal Consolidation Loans are also addressed in the notice.
For Consolidation Loans with applications received on or after November 13, 1997, and before October 1, 1998, the portion that repaid loans other than Health Education Assistance Loans (HEAL) carries a 6.78% rate for 2026–27.
For the portion of a Consolidation Loan that repaid HEAL loans, the rate is based on the average of the 91 day Treasury bill rates auctioned during the quarter ending June 30, plus a statutory add on. The applicable Treasury bill average for 2026 was 3.72%, resulting in a 6.72% interest rate. Unlike the other categories, there is no statutory maximum interest rate for the portion attributable to HEAL loans.
Determining the Applicable Rate
Because FFEL variable interest rates depend on the loan type, disbursement date, borrower status, and other factors, institutions and borrowers should consult the Department’s complete rate tables to determine the rate applicable to a particular loan.
The Federal Register notice includes four detailed charts showing the applicable Treasury benchmark, statutory add on, maximum rate, and resulting 2026–27 interest rate for each covered category.
Read the complete Annual Notice of Interest Rates for Variable Rate Federal Student Loans Made Under the Federal Family Education Loan Program Prior to July 1, 2010.