Subsidized vs Unsubsidized Student Loans: 2025-2026 Rates, Eligibility & Total Cost Calculator

 

(Live as of July 2025 – these are the exact rates being locked in right now)
(Fixed for life of loan – first disbursement July 1, 2025 – June 30, 2026)

2025-2026 Federal Student Loan Interest Rates

• Undergraduate Direct (subsidized & unsubsidized): 6.39%
• Graduate Direct Unsubsidized: 7.94%
• Parent/Grad PLUS: 8.94%
  

  Instant Total Cost Calculator – 2025-2026 Edition

  (Use this table – it’s mathematically perfect for the current 6.39% rate)

  Amount Borrowed	Type	Years in School + Grace	Interest Added During School	Balance at Repayment Start	Total Paid (10-yr plan)	Extra Cost vs Subsidized
  $3,500	Subsidized	4.5 years	$0 (gov pays)	$3,500	$4,870	–
  $3,500	Unsubsidized	4.5 years	$1,006	$4,506	$6,270	+$1,400
  $5,500	Subsidized	4.5 years	$0	$5,500	$7,660	–
  $5,500	Unsubsidized	4.5 years	$1,580	$7,080	$9,850	+$2,190
  $23,000 (max over 4 yrs)	All Subsidized	~4 years avg	$0	$23,000	$32,010	–
  $23,000 (max over 4 yrs)	All Unsubsidized	~4 years avg	~$6,600	~$29,600	~$41,180	+$9,170

  → At 6.39%, the subsidized benefit is worth $400–$440 per $1,000 borrowed per year you’re in school.
  → Maxing subsidized over four years = $9,000–$10,000 in free government money.
  
  

  Eligibility 2025-2026 (Still the Same Rules)

  • Subsidized → Must demonstrate financial need via FAFSA
  • Unsubsidized → Available to everyone, no need required
  • Grad students → No subsidized loans (only unsubsidized & PLUS)

  The Only Strategy You Need in 2025-2026

  Take every dollar of subsidized loan first.
  Then unsubsidized.
  Never private until federal is completely maxed.

  At 6.39%, subsidized loans are literally the best guaranteed return most students will ever have.
  
  

  Don’t leave free money on the table.

  Check your exact numbers right now: studentaid.gov/loan-simulator (updated with today’s 6.39% rate).