autopay News & Analysis

Trump Administration Cuts Student Loan Rates by 1% for Autopay Users

The Trump administration announced a 1-percentage-point reduction in federal student loan interest rates for borrowers who enroll in autopay, effective July 1. This discount improves borrowing conditions from an existing 0.25-percentage-point discount and will last until June 30, 2028. More than 42 million Americans hold federal student loans totaling over $1.6 trillion, yet only 40% currently use autopay. While the savings may be modest—approximately $8 monthly on a $10,000 loan—the initiative aims to encourage borrowers to manage their repayments more effectively.