New Student Loan Rate Discount Is Available Through 2028 -- Here's Who Qualifies

A new student-loan rate discount in the United States will remain available through June 30, 2028, offering a 1% interest rate reduction for many federal direct loan borrowers starting July 1. The U.S. Department of Education announced on June 18 that the extra savings applies to borrowers who originated a federal direct loan after July 1, 2012 and enroll in autopay. The discount is larger than the existing 0.25% autopay rate reduction. To qualify for the added 1% reduction, borrowers must sign up for autopay by September 30, 2026. If a loan is in default, borrowers must first bring it back to good standing. The article also notes new graduate loan caps starting July 1, potentially affecting funding for some students.