Student Loans: Deadline to Secure Lower Interest Rates Hits in Just Days
The U.S. Department of Education is offering eligible borrowers a temporary 1-percentage-point reduction in their interest rate.
Federal student loan borrowers have only a few days left to secure a temporary 1-percentage-point reduction in their interest rates, which could save them money through 2028. To qualify, eligible borrowers must enroll in automatic payments by September 30, according to the U.S. Department of Education. Financial experts say the reduced interest rates could help borrowers maintain on-time payments and improve the overall health of the federal student loan portfolio.
However, not all borrowers will automatically qualify and those who are delinquent may need to bring their loans current or switch repayment plans before enrolling in autopay. The reduced interest rates will apply to federal student loans originated after July 1, 2012, and will remain in effect through June 30, 2028.
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