The Hill
The Education Department said Thursday it will reduce interest rates by 1 percent on student loans for borrowers enrolled in automatic payments starting on July 1.
The reduction will be in effect through June 30, 2028. In order to benefit, borrowers must enroll in auto pay by Sept. 30 of this year — if they are not enrolled already.
Borrowers who use auto pay already receive a 0.25-percentage-point reduction on their interest rates. The Education Department noted those borrowers do not have to take any action to receive the full-point decrease, as their servicer will automatically reduce their rate by an additional 0.75 percent.
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