The Education Department announced on Thursday a 1 percent reduction in federal student loan interest rates for borrowers enrolled in automatic payments starting next month.
The interest rate reduction will apply to student loan borrowers who are already enrolled in autopay or who enroll by Sept. 30, and will take effect from July 1 through June 30, 2028, according to the department’s statement.
Autopay is a payment method that automatically deducts the monthly student loan payment from a borrower’s checking or savings account.
Borrowers enrolled in autopay already receive a 0.25-percentage-point reduction in student loan interest rate. Starting next month, they will automatically receive an additional 0.75 percentage-point reduction on the 1 percent reduction, the department said….