Federal Student Aid Announces Increased Auto Pay Interest Reduction and FAFSA Availability

Federal Student Aid has announced a temporary increase in the interest rate reduction for auto-pay borrowers, rising from 0.25% to 1% starting July 1, 2026. Additionally, the 2027–28 Free Application for Federal Student Aid (FAFSA®) form is scheduled for release by October 1, 2026. These updates provide important financial adjustments for student loan holders and critical information for future aid applicants.