Education Loan Calculator — USA
Estimate your USA education-loan EMI, accounting for the study-period moratorium. Free, no signup.
Federal Direct Loan rates for the 2026–27 award year
For loans first disbursed between 1 July 2026 and 30 June 2027, the U.S. Department of Education set fixed rates of 6.52% for Direct Subsidized and Unsubsidized Loans to undergraduates, 8.07% for Direct Unsubsidized Loans to graduate and professional students, and 9.07% for Direct PLUS Loans (Parent PLUS and Grad PLUS), each set once a year from the final 10-year Treasury note auction before June 1 plus a fixed statutory add-on. These rates are fixed for the life of each loan, not the reference "6.5%" used as an illustrative default in the calculator above. On top of the rate, the government deducts an origination fee before disbursing the money: 1.057% for Direct Subsidized/Unsubsidized Loans first disbursed through 30 September 2027, and 4.228% for PLUS loans — so a $10,000 Direct Loan actually delivers about $9,894.
Annual federal borrowing limits for dependent undergraduates are $5,500 (1st year), $6,500 (2nd year) and $7,500 (3rd year and beyond), up to a $31,000 aggregate cap, of which no more than $23,000 can be subsidized. The One Big Beautiful Bill Act (OBBBA), enacted in 2025, changes borrowing from 1 July 2026: the Grad PLUS program is closed to new graduate borrowers (existing Grad PLUS borrowers keep access for up to three more years in the same program), and new graduate students instead borrow under caps of $20,500/year ($100,000 aggregate) for most graduate programs or $50,000/year ($200,000 aggregate) for professional programs such as medicine and law, subject to an overall $257,500 lifetime federal borrowing limit excluding Parent PLUS. Parent PLUS loans are capped at $20,000 per year and $65,000 per dependent student from the same date, replacing the previous no-cap rule.
Repayment plans after the One Big Beautiful Bill Act
OBBBA also restructures repayment. From 1 July 2026, new borrowers choose between the Standard repayment plan and a new income-driven Repayment Assistance Plan (RAP), which sets payments at roughly 1–10% of income (minimum $10/month) over a 30-year term and is designed to prevent the loan balance from growing faster than payments are made. Older income-driven plans — SAVE, PAYE, IBR and ICR — are being phased out for new enrollment, and borrowers currently on those plans have until 1 July 2028 to move to RAP or another current plan. Because servicer transition timelines can shift, confirm your own options directly on studentaid.gov before choosing a plan.
- Federal vs. private: Federal Direct Loans (via the FAFSA) carry fixed rates set by law, government-run income-driven repayment, deferment/forbearance and forgiveness options. Private loans from banks and lenders such as Sallie Mae or SoFi are credit-underwritten, may have variable rates, and rarely offer income-driven repayment — federal loans are usually the cheaper, more flexible option to exhaust first.
- Grace period: Direct Subsidized and Unsubsidized Loans have a standard six-month grace period after you graduate, leave school, or drop below half-time enrollment, before the first payment is due. Interest continues to accrue on Unsubsidized and PLUS loans during school and the grace period; on Subsidized loans, the government covers interest while you're in school and during the grace period.
- Moratorium modeling: the calculator above lets you add a study/moratorium period during which interest accrues and is added to principal — useful for approximating an Unsubsidized or PLUS loan, or a private loan, where interest is not covered while you're enrolled.
Frequently Asked Questions
What are the federal student loan interest rates for 2026–27?
For loans first disbursed 1 July 2026 through 30 June 2027: 6.52% for undergraduate Direct Subsidized/Unsubsidized Loans, 8.07% for graduate Direct Unsubsidized Loans, and 9.07% for Direct PLUS Loans. Rates are fixed for the life of the loan and reset each July based on the 10-year Treasury note yield.
Is the Grad PLUS loan still available?
No. Under the One Big Beautiful Bill Act, Grad PLUS closed to new graduate borrowers from 1 July 2026 (existing borrowers keep limited continued access). New graduate and professional students instead borrow under new annual/aggregate Direct Unsubsidized Loan caps.
What is the grace period on a federal student loan?
Direct Subsidized and Unsubsidized Loans have a six-month grace period after you leave school or drop below half-time enrollment before your first payment is due.
Should I choose a federal loan or a private loan?
Exhaust federal Direct Loans first: rates are fixed by law, and federal loans offer income-driven repayment, deferment and forgiveness options that most private lenders don't match. Private loans are underwritten on credit and can have variable rates.
Sources
- U.S. Dept. of Education / Federal Student Aid — 2026–27 Direct Loan interest rates (accessed 24 September 2026)
- Federal Student Aid — Subsidized and Unsubsidized Loans (limits) (accessed 24 September 2026)
- The Institute for College Access & Success — 2026–27 federal loan amounts, terms and origination fees (accessed 24 September 2026)
- Harvard University Student Financial Services — Key changes from the One Big Beautiful Bill Act (accessed 24 September 2026)
- Washington State University Student Financial Services — OBBBA 2026–27 changes to federal financial aid (accessed 24 September 2026)
- Consumer Financial Protection Bureau — When repayment starts / grace period (accessed 24 September 2026)