FAFSA, Pell Grants and Loan Rates: Key Numbers

From ed.gov and fsapartners.ed.gov, checked 13 October 2026. The minimum Pell Grant for 2026–27 is $740.

What to do first

1. File the FAFSA as early as you can. It opened on 23 September 2026 for the 2027–28 year, the earliest launch in the program’s history. Some state and college aid is first come, first served.
2. Grants before loans. A Pell Grant does not have to be repaid. Your FAFSA decides whether you qualify.
3. Federal loans before private loans. Federal undergraduate loans have a fixed rate (6.52% for loans first disbursed this year) and federal repayment options.
4. Borrow only what you need. Interest builds from the start on unsubsidized loans.

Grants versus loans in numbers

For 2026–27, a Pell Grant can be anything from $740 to $7,395 for the year, depending on your Student Aid Index, cost of attendance and enrollment status. A federal loan is different: the rate set for the year you borrow is fixed for the life of that loan, so a loan taken out now keeps 6.52% even if rates change later. Graduate students pay more (8.07%), and PLUS loans for parents and graduate students cost the most (9.07%).

A quick example

If you borrow $5,500 as an undergraduate at 6.52%, simple interest of roughly $359 a year builds up on an unsubsidized loan while you study. On a subsidized loan, the government pays that interest while you are in school at least half-time. That is why it pays to accept subsidized loans first.

Then cut your costs

After aid, the everyday costs are where student discounts help: laptops, free software, music and phone plans. Plan it all with our student budget calculator.

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Related guides

Sources we checked

• www.ed.gov
• fsapartners.ed.gov
• fsapartners.ed.gov
• www.fox5ny.com