U.S. Department of Education Announces Student Loan Interest Rate Reduction
Federal student loan borrowers using autopay qualify for a 1 percent interest rate reduction starting July 1. To receive the discount, borrowers must be enrolled in automatic payments by September 30, 2026.
What changed
New details establish a September 30 enrollment deadline and link the policy to the One Big Beautiful Bill Act.
Live updates
-
U.S. Department of Education Implements 1% Student Loan Interest Rate Cut
confidence 90%Federal student loan borrowers using autopay qualify for a 1 percent interest rate reduction starting July 1. To receive the discount, borrowers must be enrolled in automatic payments by September 30, 2026.
What's confirmed:
- Federal student loan borrowers enrolled in autopay are eligible for a 1 percent interest rate reduction beginning July 1.
- Borrowers must enroll in autopay by September 30, 2026, to receive the benefit.
Still unconfirmed:
- The interest rate reduction is tied to President Donald Trump's One Big Beautiful Bill Act.
- The Trump administration implemented the cut to address a $1.7 trillion federal student loan portfolio and rising delinquencies.
-
Education Department Reduces Student Loan Interest Rates for Autopay Users
confidence 100%The U.S. Department of Education will offer a 1 percent interest rate reduction for federal student loan borrowers who enroll in autopay. This temporary benefit begins July 1. Borrowers must meet specific eligibility criteria to receive the discount.
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 reduction is a temporary measure.
- The Trump administration is implementing the interest rate cut.