U.S. Department of Education Announces Temporary 1% Interest Rate Reduction for Auto-Pay Enrolled Borrowers

The U.S. Department of Education has announced a temporary 1% interest rate reduction for federal student loan borrowers who are enrolled in auto-pay, or who enroll by September 30, 2026. This benefit will be effective from July 1, 2026, through June 30, 2028, and aims to encourage repayment and improve the health of the federal student loan portfolio.