Feds Cut Interest Rates on Federal Student Loans
· Texas Border Business
The U.S. Department of Education has announced a 1% interest rate reduction for federal student loan borrowers who enroll in auto pay starting July 1. This reduction applies to those who enroll by September 30, 2026, or are already enrolled, lasting until June 30, 2028. The initiative aims to simplify repayment and increase affordability in higher education. Additionally, two new repayment plans will be available from July 1: the income-driven Repayment Assistance Plan (RAP) and the Tiered Standard repayment plan. Borrowers can benefit from these plans by maintaining auto pay, which helps ensure timely payments and access to loan forgiveness options.
AI summary · Source: Texas Border Business →
