For loans disbursed between July 1, 2025, and June 30, 2026, undergraduate rates will be set at 6.39 percent, a decline from last year's 6.53 percent.

The federal government last month restarted collections on defaulted student loans and state agencies have a source of support for worried borrowers.

The federal government could soon garnish wages or seize tax refunds of delinquent student loan borrowers. At the same time, Education Department staff cuts, reduced repayment options, and administrative slowdowns are causing confusion.