Student Loan Rates in July 2026: What Borrowers Need to Know

Lifetime limits on student loans and graduate loans are changing July 1, 2026, with some graduate degrees seeing lower caps. If you need additional funding after exhausting federal loan options, or if you can get a lower rate (especially compared to graduate and Plus loans), there are some steps you can take to get the best private student loan rates:

• Review your credit report: Check your credit report for errors that might be impacting your credit score. Correct mistakes to potentially improve your score before you begin applying for private student loans.
• Improve your credit score: The best private student loan rates are made available to those with good or excellent credit. Take steps to improve your credit score by making on-time payments and reducing your debt.
• Look for discounts: Some lenders offer an interest rate discount if you sign up for autopay. Additionally, you might be able to get a discount if you have other accounts with the lender.
• Add a cosigner: If you don’t meet the lender’s requirements for the lowest interest rate, consider adding a cosigner. A cosigner with good credit and a higher income might help you qualify for a lower interest rate. Find out if the lender offers a cosigner release after you make a certain number of payments.

Does the One Big Beautiful Bill Act affect student loan rates?

The One Big Beautiful Bill Act (OBBBA), or H.R. 1, doesn’t impact the formula related to federal student loan rates. Federal student loan rates remain set according to a law passed by Congress, and that law hasn’t been adjusted. However, other federal student loan changes as a result of OBBBA can impact how you pay for school.

Private loan rates are influenced by market conditions and set by private lenders based on their own criteria, usually with the help of a rate index. As a result, H.R. 1 doesn’t have a direct impact on their rates. However, some of the policies enacted by the OBBBA, such as new lifetime borrowing caps for some graduate students, could affect the market and result in changes to private student loan rates. 

Continue to compare lenders and rates throughout your college career since you typically must re-apply for private student loans each academic year.

How Buy Side rates private student loans

We analyzed data points from more than 15 lenders, including traditional banks, credit unions and online lenders, that offer private student loans in at least 10 states and assigned ratings on a scale of 1 to 5 stars. We regularly add new lenders and update scoring. Our pool includes some lenders that are advertising partners, but partners don’t compensate us for ratings or influence the outcome of our ratings. Learn more about how Buy Side rates private student loan lenders using data-driven methodologies.