U.S. Department of Education Extends One-Percent Interest Rate Reduction for Federal Student Loan Borrowers

The U.S. Department of Education has announced an extension of a one-percent interest rate reduction for certain federal student loan borrowers who enroll in automatic payments by the end of the year. This initiative, part of the broader One Big Beautiful Bill Act (OBBBA) effective July 1, 2026, allows eligible borrowers to maintain the reduced rate through June 2028.