Student loan borrowers can get a 1% interest rate cut with one simple change

Federal student loan borrowers enrolled in automatic payments will receive a 1% interest rate reduction starting July 1, 2026, through June 30, 2028. Two new repayment plans—the income-driven Repayment Assistance Plan and Tiered Standard repayment plan—will also launch July 1, offering income-based payments and fixed-term options.