U.S. Department of Education Extends Enrollment Period for Student Loan Interest Rate Reduction

The U.S. Department of Education has extended the enrollment period for a 1 percent interest rate reduction benefit for federal student loan borrowers by an additional three months. Borrowers who enroll in auto pay by December 31, 2026, or are already enrolled, will receive the reduction through June 30, 2028. This temporary benefit aims to support borrowers, including those returning to repayment, and ensure access to key benefits under the new Repayment Assistance Plan (RAP).