Trump’s student loan rate cut excludes most of the 9 million borrowers in default

The Education Department announced a 1% reduction in federal student loan interest rates for borrowers with Direct Loans issued after July 1, 2012, who are enrolled in or sign up for automatic payments. The rate cut excludes nearly 9 million borrowers in default, who must first regain good standing to qualify. The change is temporary, lasting through June 30, 2028.