Federal student loan rates rise for 2026-27 school year as Treasury yields climb
By
, USA TODAY
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Summary
Federal student loan rates are rising for the 2026-27 school year due to elevated inflation pushing Treasury yields higher. The 10-year Treasury yield from the May auction rose to 4.47%, up from 4.34% in 2025, which directly impacts government student loan rates. Experts suggest that with federal rates increasing, families should consider comparing private loan options as they may offer better terms for some borrowers.
Key quotes
· 3 pulledFederal student loan rates are edging up next year, but that shouldn't be surprising, experts said.
Government student loan rates are determined by the Treasury's May auction of 10-year notes plus a fixed margin set by Congress.
The jump in the 10-year yield pushed up federal student loan rates for families planning to take out a federal student loan for the 2026-27 school year.
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