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Student Loans
Simple, plain-English help for paying for school and paying your loans back, with no judgment and no jargon.
Advertiser disclosure: We may be paid when you click some links on this page. See the full disclosure at the bottom.
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Shopping for a student loan?
See student loan options from multiple lenders in one place on Money.com.
Compare Student Loan Rates →Paying for school?
Compare student loan rates from multiple lenders in one place.
Compare student loan rates →Already have loans?
What to do if your payments feel too high, plus the free tools to use first.
Get help with payments →Have private loans?
Refinancing can sometimes lower your rate. Here’s how to tell if it makes sense.
Learn about refinancing →How to pay for school, in the right order
- Fill out the FAFSA first. It’s free, and it’s how you get grants, work-study, and federal student loans. Grants and scholarships are money you don’t pay back, so use them before you borrow.1
- Use federal student loans next. Federal loans have fixed rates set by law and come with income-based payment plans that most private loans don’t offer.1,2
- Use a private loan only to fill the gap. If grants, savings and federal loans still don’t cover the bill, a private loan can cover the rest. Your rate depends on your credit, so a cosigner may help.
Federal student loan rates for 2026–27
| Loan type | Fixed rate |
|---|---|
| Undergraduate (Subsidized and Unsubsidized) | 6.52% |
| Graduate or professional (Unsubsidized) | 8.07% |
| PLUS loans (parents and grad students) | 9.07% |
For loans first paid out from July 1, 2026 through June 30, 2027. The rate stays the same for the life of the loan.2
Types of student loans
If you’re researching student loans, it helps to know the main kinds before you compare offers.
| Loan type | Who it’s for | Good to know |
|---|---|---|
| Direct Subsidized (federal) | Undergraduates with financial need | The government pays the interest while you’re in school at least half-time.8 |
| Direct Unsubsidized (federal) | Undergraduate and graduate students; not based on need | Interest builds while you’re in school. You can pay it as you go or let it add up.8 |
| Parent PLUS (federal) | Parents of dependent undergraduates | Now capped at $20,000 a year and $65,000 total per student.3 |
| Grad PLUS (federal) | Graduate students | Closed to new borrowers as of July 1, 2026.3 |
| Private student loans | Anyone who still needs money after aid | Made by banks and other lenders. Your credit decides your rate, rates may be variable, and a cosigner may help.9 |
| Refinancing | People who already have loans | A new private loan pays off old loans, ideally at a lower rate. Refinancing federal loans means losing federal protections.5 |
Student loan pitfalls to avoid
- Skipping the FAFSA. It’s the only way to get federal grants and federal loans, so fill it out even if you think you won’t qualify.1
- Borrowing more than you need. Every extra dollar you borrow is a dollar you pay back with interest. Start with your school’s cost, subtract grants and savings, and borrow only the gap.
- Forgetting interest builds during school. On Direct Unsubsidized loans, you owe the interest that builds while you’re in school. If you don’t pay it as you go, it adds up. Ask any private lender how its loans handle interest during school.8
- Not reading the rate type. Federal loans have fixed rates. Private loans may be variable, which means your rate and payment can go up later.9,12
- Cosigning without a plan. A cosigner is fully responsible if the student can’t pay. Getting a cosigner released later isn’t guaranteed; a CFPB review found 90% of release requests it studied were rejected.9,11
- Refinancing federal loans too fast. Turning federal loans into a private loan ends access to income-based plans and federal forgiveness programs.5
- Letting payments slide. A federal loan generally goes into default after 270 days without a payment. That can mean garnished wages, a taken tax refund and a lower credit score.10
- Paying someone for “help.” Help with federal student loans is free from StudentAid.gov and your servicer.6
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Ready to compare your options?
Check student loan rates from multiple lenders on Money.com.
Compare Student Loan Rates →What changed on July 1, 2026
New federal rules changed how much you can borrow and how you pay it back. The basics:3,4
- Grad PLUS loans closed to new borrowers. Graduate students can borrow up to $20,500 a year ($100,000 total). Professional students, like law and medical students, can borrow up to $50,000 a year ($200,000 total).
- Parent PLUS loans now have a limit: $20,000 a year and $65,000 total for each student.
- New loans have two payment plans: the Tiered Standard plan (fixed payments over 10 to 25 years) and the Repayment Assistance Plan, or RAP, where payments are 1% to 10% of your income.
- Already have loans? Some borrowers in older plans need to pick a new plan by July 1, 2028. You can check your options for free at StudentAid.gov.
Having trouble making payments?
You’re not alone, and you have options. Start here:
- Call your loan servicer before you miss a payment. That’s the company that sends your bill. Ask what plans, pauses or lower-payment options you qualify for.5
- Use the free Loan Simulator at StudentAid.gov to compare what you’d pay on each federal plan.4
- Look at an income-based plan. On RAP, your payment is based on what you earn, and on-time payments can’t make your balance grow from unpaid interest.4
Watch out for scams. You never have to pay anyone for help with your federal student loans. That help is free at StudentAid.gov and from your servicer. If someone asks for an upfront fee or your FSA ID, walk away.6
Refinancing private student loans
Refinancing means taking a new loan to pay off your old one, ideally at a lower rate. It can make sense for private student loans. Be careful with federal loans: once you refinance them into a private loan, you lose federal benefits like income-based plans and forgiveness programs.5
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Yrefy: refinancing for private student loans
- Fixed rates from 0.1% to 5.99% APR for qualified borrowers
- For private student loans only, not federal loans
- No minimum credit score; checking your rate won’t affect your credit
- Not available in CA, CT, MS, MT, NY or WA
Rates and terms are set by Yrefy, may change, and depend on approval. Information checked on Yrefy’s website in October 2026.7
Advertiser disclosure: This page contains advertising. FinanceEspresso may receive compensation when you click links to partners such as Money.com and Yrefy, and that compensation may affect which offers appear on this page. FinanceEspresso is not a lender, does not make credit decisions, and does not include every company or offer available. Rates and terms are set by each lender, may change at any time, and are subject to approval. The information on this page is for general education and is not financial advice.
Sources
- Federal Student Aid, Steps for students: Filling out the FAFSA form.
- Federal Student Aid, Interest rates for Direct Loans first disbursed July 1, 2026 to June 30, 2027, June 4, 2026.
- The College Investor, Department of Education finalizes loan limits and repayment plan changes.
- U.S. Department of Education, Fact sheet: Simplifying student loan repayment, last reviewed June 11, 2026.
- Consumer Financial Protection Bureau, Options for repaying your federal and private student loans.
- Federal Trade Commission, Spotting student loan scams, May 2025.
- Yrefy, yrefy.com, checked October 2026.
- Edfinancial Services (Federal Student Aid servicer), Federal Subsidized and Unsubsidized Loans.
- Consumer Financial Protection Bureau, What are private student loans?
- Consumer Financial Protection Bureau, What happens if I default on a federal student loan?
- Consumer Financial Protection Bureau, CFPB finds 90 percent of private student loan borrowers who applied for co-signer release were rejected, June 18, 2015.
- Consumer Financial Protection Bureau, Federal student loans or private student loans?