Federal Student Loan Auto-Pay Interest Reduction Increased to 1 Percent (United States, June 2026)
The U.S. Department of Education announced that eligible federal student loan borrowers enrolled in auto pay will receive a 1 percent interest rate reduction beginning July 1, 2026. Borrowers already enrolled or enrolling by September 30, 2026 can benefit through June 30, 2028 if they remain in auto pay.