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Subsidized Loan
How Direct subsidized loans work for 2026-27: the rate and fee, who pays the interest while you're in school, borrowing limits, and a repayment calculator.
Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.
Subsidized loan calculator
Standard 10-year payment
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–First-year amount disbursed after the 1.057% fee
–Total interest repaid
Direct subsidized loans for 2026-27
- Interest rate: 6.52% fixed for undergraduate subsidized and unsubsidized loans first disbursed July 1, 2026 to June 30, 2027 (graduate unsubsidized: 8.07%).
- Loan fee: 1.057%, taken from each disbursement.
- The subsidy: the Department of Education pays the interest while you're in school at least half-time, for six months after you leave school, and during deferment.
- Subsidized loans are for undergraduates with financial need; the school sets the amount. Annual subsidized limits are $3,500, $4,500 and $5,500 by year in school, within a $23,000 aggregate subsidized limit.
Unsubsidized loans accrue interest from disbursement. Interest you pay later may be deductible: see the student loan interest deduction.
Common questions
What is the 2026-27 subsidized loan interest rate?
6.52% fixed for undergraduates.
Who pays the interest on a subsidized loan?
The Department of Education, while you're in school at least half-time, during the six-month grace period and during deferment.
What is the subsidized loan fee?
1.057% of each disbursement.
Sources
More loan and car calculators: SBA 7a Loan · Teacher Loan Forgiveness · Unsubsidized Loan 2026-27
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.