Question 1

What is the 2026 federal student loan interest rate?

Accepted Answer

For 2025–2026, federal Direct Unsubsidized Loans for undergraduates carry a 6.54% fixed interest rate. Graduate students pay 8.08% and Direct PLUS loans are 9.08%. Rates are set each year based on the 10-year Treasury note rate plus a fixed add-on.

Question 2

What is income-driven repayment (IDR)?

Accepted Answer

Income-driven repayment plans cap your monthly payment at a percentage of your discretionary income (typically 5–10% under SAVE, the current primary IDR plan). Payments can be as low as $0 for low-income borrowers. Any remaining balance after 20–25 years may be forgiven (though forgiveness may be taxable).

Question 3

Should I pay off student loans or invest?

Accepted Answer

Compare your loan interest rate to expected investment returns. Federal loans at 5–7% are a borderline case — paying off early is safe and guaranteed. Private loans above 8% should generally be paid off aggressively. Always capture any employer 401k match before extra loan payments.

Question 4

Does refinancing student loans make sense?

Accepted Answer

Refinancing federal loans into private loans can lower your rate if you have strong credit and stable income — but you permanently lose federal protections (IDR plans, forbearance, potential forgiveness). Only refinance federal loans if you are certain you will not need those protections.

Student Loan Calculator

Student Loan Payment

Loan Summary