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The Trump administration says it is cutting student loan interest. Not everyone qualifies.

The Department of Education is offering a temporary 1% interest rate reduction for borrowers who use autopay. This incentive is part of a broader set of changes under the One Big Beautiful Bill Act. Some borrowers in the SAVE plan may remain enrolled until at least September 29.

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What changed

New details identify autopay as the requirement for the interest discount and link changes to the One Big Beautiful Bill Act.

Live updates

  1. Trump Administration Implements Student Loan Interest Reductions

    The Department of Education is offering a temporary 1% interest rate reduction for borrowers who use autopay. This incentive is part of a broader set of changes under the One Big Beautiful Bill Act. Some borrowers in the SAVE plan may remain enrolled until at least September 29.

    What's confirmed:

    • Autopay can lower federal student loan interest rates by 1% temporarily.
    • The One Big Beautiful Bill Act of 2025 changes student loan borrowing caps and repayment plans.
    • The Department of Education stated SAVE plan borrowers do not have to leave the plan until September 29 at the earliest.

    Still unconfirmed:

    • The 2026 student loan changes include the rollout of RAP and Tiered Standard plans.
    • The tax bomb has returned for loan forgiveness after 2025.
    • Grad PLUS loans have ended.
    confidence 90%

  2. Trump Administration Implements 1% Student Loan Interest Cut

    The Department of Education is offering a temporary 1% interest rate reduction to encourage loan repayment. Borrowers must meet specific eligibility criteria to receive the discount. The program starts July 1.

    What's confirmed:

    • The Department of Education is providing a temporary 1% interest rate reduction for federal student loan borrowers.
    • Eligible borrowers must enroll in automatic payments to qualify for the discount.
    • The interest rate reduction begins July 1.

    Still unconfirmed:

    • Borrowers must have loan consolidation and be in good standing to qualify.
    • Federal student loan debt is approaching $2 trillion.
    • The federal student loan portfolio is $1.7 trillion.
    confidence 80%

  3. Trump Administration Cuts Student Loan Interest for Autopay Users

    The Department of Education is implementing a temporary 1 percent interest rate reduction for federal student loan borrowers. To qualify, eligible federal Direct Loan borrowers must enroll in automatic payments. The benefit begins July 1.

    What's confirmed:

    • Federal student loan borrowers enrolled in auto pay are eligible for a 1 percent interest rate reduction beginning July 1.
    • The interest rate discount is temporary.
    • The discount applies to eligible federal Direct Loan borrowers using automatic payments.
    • The Trump administration describes the rate reduction as part of a plan to make higher education more affordable.

    Still unconfirmed:

    • The rate cut excludes most of the 9 million borrowers in default.
    • Rates on new student loans will rise on July 1.
    • Parent PLUS borrowers face risks to forgiveness and repayment options after July 1.
    confidence 95%