Federal Student Loans Offer 1% Rate Discount Through 2028

AI Summary

The U.S. Department of Education announced a 1 percentage point reduction on federal student loan interest rates for borrowers who enroll in autopay. This discount is available until June 30, 2028, and currently complements the existing 0.25 percentage point discount for autopay. Eligibility includes borrowers with Direct Loans issued after July 1, 2012, and those whose loans are in good standing. With over 40 million Americans holding student loans, this measure may alleviate financial pressures during rising living costs.