Student Loan Rates Drop for Auto-Payers

Student loan relief is coming: the Education Department is slashing interest rates by one percent for eligible borrowers—those with Direct Loans taken out after July 1, 2012, who opt into automatic payments. While the full benefit is modest, it’s a sweet spot for those already on autopilot, who’ll see an extra 0.75% savings. The move, set to expire June 30, 2028, aims to curb rising default rates and encourage more borrowers to enroll in auto pay—currently only 40% do. It’s part of a larger strategy to stabilize the $1.7 trillion federal student loan system and keep people on track with repayments. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/e08b8d76aa3323c2