Parent PLUS interest rate and fee for 2026–27

Parent PLUS loans first disbursed between July 1, 2026 and June 30, 2027 carry a fixed 9.07% interest rate. Each disbursement also loses a 4.228% origination fee before it reaches the school.

Updated October 30, 2026 · Based on official sources listed below · How we research

9.07%

fixed rate, first disbursed July 1, 2026 – June 30, 2027

4.228%

origination fee, first disbursed Oct 1, 2026 – Sept 30, 2027

10.50%

legal maximum rate for PLUS loans

How the 9.07% rate is set

Federal student loan rates are fixed for the life of each loan and reset every July 1 for new loans. By law, the PLUS rate equals the high yield of the last 10-year Treasury note auction before June 1, plus 4.60 percentage points, capped at 10.50%. The May 12, 2026 auction produced a high yield of 4.468%, rounded to 4.47%, so the 2026–27 PLUS rate is 4.47% + 4.60% = 9.07%. The same rate applies to legacy Grad PLUS loans.

Loan, first disbursed July 1, 2026 – June 30, 2027	Rate
Direct Subsidized and Unsubsidized, undergraduate	6.52%
Direct Unsubsidized, graduate and professional	8.07%
Direct PLUS (parents and graduate students)	9.07%

The 4.228% origination fee

The fee is a percentage of the amount you borrow and is deducted before the money reaches the school. The Education Department’s FY27 sequester announcement sets it at 4.228% for PLUS loans first disbursed on or after October 1, 2026 and before October 1, 2027, the same rate charged since October 2020. Because the $20,000 and $65,000 caps apply to the amount borrowed, the fee reduces how much you can actually send to the school.

You borrow	Fee (4.228%)	School receives
$5,000	$211.40	$4,788.60
$10,000	$422.80	$9,577.20
$20,000 (annual cap)	$845.60	$19,154.40
$65,000 (total cap)	$2,748.20	$62,251.80

To get a specific amount to the school, divide it by 0.95772. Netting a full $20,000 would take $20,882.93, which is over the annual cap, so under the new rules no more than $19,154.40 a year can reach the school from Parent PLUS.

What 9.07% costs in dollars

Interest on $20,000 builds up at about $4.97 a day, or $151 a month.
If you defer payments for four years of college, unpaid interest on that $20,000 adds up to about $7,256.
Repaying $20,000 over 10 years costs $254.11 a month and $10,493 in interest.
Including the fee, a $20,000 Parent PLUS repaid over 10 years costs about the same as a no-fee loan at 10.09% APR on the $19,154 you actually receive. That is the number to use when you compare private parent loans.

Past Parent PLUS rates

First disbursed	PLUS rate
July 1, 2026 – June 30, 2027	9.07%
July 1, 2025 – June 30, 2026	8.94%
July 1, 2024 – June 30, 2025	9.08%
July 1, 2023 – June 30, 2024	8.05%
July 1, 2022 – June 30, 2023	7.54%
July 1, 2021 – June 30, 2022	6.28%
July 1, 2020 – June 30, 2021	5.30%
July 1, 2019 – June 30, 2020	7.08%

Each loan keeps its own rate. A family that borrows every year from 2026 to 2030 will have four loans at four rates. The 2027–28 rate will be set from the May 2027 Treasury auction.

Frequently asked questions

What is the Parent PLUS interest rate for 2026–27?

9.07% fixed for loans first disbursed from July 1, 2026 through June 30, 2027. It is the 4.47% 10-year Treasury yield from the May 12, 2026 auction plus a 4.60-point add-on set in law.

Is the Parent PLUS rate fixed or variable?

Fixed. The rate set for the year a loan is first disbursed applies for the life of that loan.

What is the Parent PLUS origination fee?

4.228% of the amount borrowed for loans first disbursed from October 1, 2026 through September 30, 2027. It is deducted from each disbursement.

Can I avoid the origination fee?

No. Every Parent PLUS disbursement is charged the fee. You can borrow a slightly larger amount to cover it, but only up to the $20,000 annual and $65,000 total caps.

Is Parent PLUS interest tax deductible?

Parents who are legally obligated on the loan may be able to deduct student loan interest, subject to income limits and a yearly maximum. See IRS Publication 970 or a tax professional for your situation.