BUSINESSFLORIDA PHOENIX
US Education Department offers two-year trim on student loan interest rates
The U.S. Education Department will temporarily reduce student loan interest rates by 1 percentage point for borrowers using auto pay from July 2026 to June 2028. Existing auto pay users will receive an additional 0.75 percentage point reduction, with the benefit estimated to cost $6 billion. The announcement precedes broader changes to federal student loan policies starting July 1, including new repayment plans and loan limits.
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