Current Student Loan Interest Rates November 2025
Compare federal and private student loan rates for 2025-2026 school year
Current Student Loan Interest Rates in November 2025
Navigating student loan options requires understanding the current interest rate landscape. For the 2025-2026 school year, federal student loan rates remain fixed, while private loan rates vary based on creditworthiness and market conditions. The Federal Student Aid office announced rates in May 2025 for loans disbursed from July 1, 2025 through June 30, 2026. Whether you’re an undergraduate student seeking your first loan or a graduate student refinancing existing debt, understanding these rates is crucial for making informed financial decisions.
Federal Student Loan Rates for 2025-2026
Federal student loans offer fixed interest rates that remain constant throughout your loan repayment period, providing predictability and stability for borrowers. The rates announced for the 2025-2026 academic year are based on the 10-year Treasury Note auction results and apply to all loans disbursed during this period.
Undergraduate Student Loans
The lowest federal loan rate available is 6.39 percent, designated for undergraduate students pursuing their first degree during the 2025-26 school year. This rate applies to both Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate borrowers. Direct Subsidized Loans offer the advantage of the government paying interest while you’re in school, making them the most economical option for eligible undergraduates. The loan fee for undergraduate loans stands at 1.057 percent of the loan amount.
Graduate and Professional Student Loans
Graduate and professional students face slightly higher rates due to the increased loan amounts typically required for advanced degrees. Direct Unsubsidized Loans for graduate students carry a fixed interest rate of 7.94 percent, while Direct PLUS Loans for graduate students and parents maintain a rate of 8.94 percent. These loans do not offer subsidized options, meaning interest accrues from the moment funds are disbursed. The loan fee for PLUS loans is significantly higher at 4.228 percent, reflecting the additional risk associated with larger loan amounts.
Federal Loan Rate Table
| Loan Type | Borrower Category | Fixed Interest Rate | Loan Fee |
|---|---|---|---|
| Direct Subsidized and Unsubsidized Loans | Undergraduate Students | 6.39% | 1.057% |
| Direct Unsubsidized Loans | Graduate or Professional Students | 7.94% | 1.057% |
| Direct PLUS Loans | Parents and Graduate Students | 8.94% | 4.228% |
Private Student Loan Rates and Options
Private student loans offer an alternative to federal loans, with interest rates varying significantly based on the borrower’s creditworthiness and financial profile. Private loan rates range from approximately 2.99 percent to 17.99 percent for new loans, with refinance rates typically ranging from just below 4 percent to nearly 14 percent. These wider rate ranges reflect the risk-based pricing model used by private lenders.
Private Lender Rate Comparison
| Lender | Variable APR Range | Fixed APR Range |
|---|---|---|
| College Ave | 4.24% to 17.99% | 2.85% to 17.99% |
| Earnest | 4.99% to 16.85% | 2.89% to 16.49% |
| LendKey | 4.23% to 15.03% | 2.99% to 14.10% |
| SoFi | 4.39% to 15.99% | 3.18% to 15.99% |
Note: Rates include autopay discounts and are subject to credit approval. Rates listed reflect information as of August 2025.
Factors Affecting Your Student Loan Rate
Multiple factors influence the interest rate you’ll receive on both federal and private student loans. Understanding these factors helps you make strategic decisions about borrowing and qualification preparation.
Credit Score
Your credit score is one of the most significant determinants of your interest rate. Borrowers with higher credit scores qualify for the lowest available rates, while those with lower scores may face rates at the higher end of the spectrum. For private loans especially, even small improvements in your credit score can result in substantial savings over the loan’s lifetime.
Debt-to-Income Ratio
Lenders examine how much of your gross income is dedicated to debt payments through your debt-to-income ratio. Borrowers with lower ratios demonstrate stronger financial stability and typically receive better rates. This metric helps lenders assess your ability to manage additional loan obligations.
Degree Type and Academic Standing
The type of degree you’re pursuing can influence your interest rate. Graduate degree programs may have different rate structures than undergraduate programs, and some lenders offer lower rates for students who maintain strong academic performance or pursue fields with higher earning potential.
Future Earnings Potential
Some private lenders offer outcomes-based financing options that consider your field of study and estimated income potential. Borrowers pursuing careers in high-earning fields may qualify for more favorable rates, as lenders view them as lower-risk investments.
Historical Federal Student Loan Rate Trends
Understanding how federal student loan rates have changed over time provides context for current rates and helps borrowers assess whether rates are favorable compared to previous years.
| Period | Undergraduate Rate | Graduate Rate | PLUS Loan Rate |
|---|---|---|---|
| July 1, 2024 – June 30, 2025 | 6.53% | 8.08% | 9.08% |
| July 1, 2023 – June 30, 2024 | 5.50% | 7.05% | 8.05% |
| July 1, 2022 – June 30, 2023 | 4.99% | 6.54% | 7.54% |
| July 1, 2021 – June 30, 2022 | 3.73% | 5.28% | 6.28% |
| July 1, 2020 – June 30, 2021 | 2.75% | 4.30% | 5.30% |
The data reveals an upward trend in federal rates, with undergraduate rates increasing from historic lows of 2.75 percent in 2020 to 6.39 percent for 2025-2026. This reflects changing market conditions and adjustments in the 10-year Treasury Note yields that determine federal loan rates.
How Interest Rates Impact Your Loan Cost
Understanding how interest calculations work helps you grasp the true cost of borrowing. Interest is calculated daily on your outstanding principal balance. To illustrate, consider a $10,000 loan with 5.5 percent annual interest:
Daily interest rate: 0.055 ÷ 365 = 0.000151
Daily interest charge: $10,000 × 0.000151 = $1.51
Monthly interest charge (30-day period): $1.51 × 30 = $45.30
This calculation demonstrates how even small percentage differences in interest rates compound significantly over a multi-year repayment period, affecting the total amount you’ll repay.
Federal Reserve Impact on Student Loan Rates
While federal student loan rates are fixed and unaffected by Federal Reserve policy changes, the relationship between the Fed and student lending remains important. In October 2025, the Federal Reserve lowered its benchmark interest rate to 3.75-4 percent, which influences the broader lending environment and affects private student loan rates, particularly for variable-rate loans. Borrowers with variable-rate private loans should monitor Fed movements, as rate changes can significantly impact their monthly payments.
Refinancing Considerations
Refinancing allows borrowers to replace existing student loans with new ones at potentially lower rates. Current refinance rates start just below 4 percent and extend up to nearly 14 percent, depending on creditworthiness and market conditions. Refinancing is typically advantageous when rates have dropped significantly since your original loans were taken out, though refinancing federal loans means losing federal protections like income-driven repayment plans and forgiveness programs.
Federal vs. Private Student Loans Comparison
Choosing between federal and private student loans involves more than comparing interest rates. Federal loans offer fixed rates for the 2025-2026 year ranging from 6.39 percent to 8.94 percent, while private loans offer fixed or variable rates ranging from 2.99 percent to 17.99 percent. Federal loans provide income-driven repayment options, potential loan forgiveness programs, and borrower protections, while private loans may offer fewer options but potentially lower rates for highly creditworthy borrowers.
Frequently Asked Questions
Q: What is the lowest federal student loan rate available for 2025-2026?
A: The lowest federal student loan rate is 6.39 percent for Direct Subsidized and Unsubsidized Loans available to undergraduate students for the 2025-2026 school year.
Q: How are federal student loan rates determined?
A: Federal student loan rates are determined by the results of the 10-year Treasury Note auction and are set annually by Congress for loans disbursed each July through June.
Q: Do private student loan rates vary?
A: Yes, private student loan rates vary significantly based on creditworthiness, ranging from approximately 2.99 percent to 17.99 percent, with both fixed and variable options available.
Q: Can I refinance my federal student loans into private loans?
A: Yes, but refinancing federal loans means losing federal protections including income-driven repayment options and potential loan forgiveness programs. Consider this trade-off carefully.
Q: What is an autopay discount for student loans?
A: An autopay discount typically reduces your interest rate by 0.25 percent when you enroll in automatic monthly payments from a designated bank account.
Q: How does the Federal Reserve affect my student loan rate?
A: Federal Reserve changes directly affect variable-rate private student loans but do not impact fixed-rate federal student loans, though Fed policy influences broader lending conditions.
References
- Student Loan Interest Rates in November 2025 — Bankrate. 2025-11-29. https://www.bankrate.com/loans/student-loans/current-interest-rates/
- How Fed Rates Impact Student Loans — Bankrate. 2025-10. https://www.bankrate.com/loans/student-loans/how-fed-impacts-student-loans/
- Interest Rates and Fees for Federal Student Loans — Federal Student Aid, U.S. Department of Education. 2025-07-01. https://studentaid.gov/understand-aid/types/loans/interest-rates
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