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Interest Articles

5 articles on interest. Browse the full blog index or jump to another topic below.

Interest is where student loans quietly get expensive. These guides explain how daily interest accrual actually works, what the federal rate is set from each year, why unsubsidized loans accrue during the grace period, and how capitalization turns unpaid interest into new principal. If you have ever wondered why your balance grew while you were paying, start with the daily interest explainer and the grace period piece, then run your own numbers in the interest calculator.
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Interest 11 min read

Will Fed Rate Hikes Raise Student Loan Rates in 2027?

The Fed does not set student loan rates. The 10-year Treasury does, and it broke 5% after the September hike. What the cycle means for 2027-28 rates and caps.

Oct 30, 2026 Read article →
Interest 9 min read

Student Loan Interest Capitalization: When It Hits

Capitalization turns unpaid interest into new principal, so future interest is charged on a bigger balance. Here is when it happens on federal loans, what it costs, and how to avoid it.

Oct 22, 2026 Read article →
Interest 10 min read

Student Loan Interest Rates 2026-27: Federal and Private

Federal student loan rates for 2026-27 are 6.52% for undergraduates, 8.07% for graduate loans, and 9.07% for PLUS, all fixed for the life of the loan. Here is how the rate is set each year, how private rates differ, and what your rate means for refinancing.

Oct 15, 2026 Read article →
Interest 8 min read

How Student Loan Interest Is Calculated (Step by Step)

Most borrowers do not realize their student loan interest is calculated daily, not monthly. We break down the exact formula your servicer uses, with real numbers.

Sep 10, 2026 Read article →
Interest 6 min read

Student Loan Grace Period: Interest Before First Payment

Your 6-month grace period is not free money. For unsubsidized loans, interest accrues from day one. Learn how much and what to do about it.

Sep 4, 2026 Read article →
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