WASHINGTON, DC - MARCH 30: A sign marks the location of the U.S. Department of Education headquarters building on March 30, 2026, in Washington, DC. (Photo by J. David Ake/Getty Images). Federal student loan borrowers will face higher borrowing costs next year as interest rates are set to increase again for the 2026–27 academic year. Beginning July 1, interest rates on new federal student loans will tick upward, making it more expensive for students and families to finance higher education.