Federal student loan borrowers get 1 percentage point interest rate reduction
The US Department of Education has increased the discount for federal student loan borrowers who sign up for automatic payments.
The new discount is 1 percentage point, up from the previous 0.25 percentage point.
Borrowers have until September 30, 2026, to enroll in autopay to receive the enhanced rate reduction, which will remain in effect through June 30, 2028.
The interest rate reduction applies to eligible federal direct loans first disbursed on or after July 1, 2012.