Student Loan Update: Two Major Changes Coming for Federal Borrowers
The administration has extended the deadline to secure an interest rate deduction.
Federal student loan borrowers can look forward to two significant changes from the Trump administration's Education and Treasury Departments. First, the deadline to enroll in automatic payments has been extended until December 31, providing borrowers with an additional three months to secure a 1-percentage-point reduction in their federal student loan interest rate, which could remain in effect until June 30, 2028.
Second, the administration has launched a new online portal, the Defaulted Loans Support Center, aimed at assisting borrowers who have fallen behind on their payments and helping them return to good standing. This centralized platform simplifies the process of resolving federal student loan defaults, offering borrowers a clearer path back to repayment and a more efficient system that better serves both borrowers and taxpayers.
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