Student Loans Get 1% Rate Cut

Student loans just got a temporary boost: starting July 1, borrowers with federal Direct Loans taken out after 2012 may see their interest rates drop by 1%—if they’re on auto-pay. The Department of Education is pushing this incentive to get more people enrolled in automatic payments, currently just 40% of borrowers. While savings won’t be huge for everyone—those already auto-paying get a quarter percent discount, so this cuts another 0.75%—it could help millions, especially those in default. The program runs until June 30, 2028, as part of a broader effort to make college debt more manageable amid nearly $1.7 trillion in outstanding federal loans. 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/eeaf6bf7b66b5b9d