The new interest rates on federal student loans for 2025-26 school year are set to fall slightly. The interest rates on federal student loans are fixed interest rates for the life of the loan. New interest rates apply to loans disbursed between July 1 and June 30.

Federal student loans may come with slightly lower interest rates in the 2025-2026 academic year, according to an estimate by higher education expert Mark Kantrowitz. The drop in interest rates could provide some very modest relief to families trying to cover college costs.

Student loan interest rates for 2025 remain painfully high, adding pressure for borrowers already facing rising college costs and stalled forgiveness programs.