Trump administration temporarily cuts student loan interest rates for borrowers on autopay

A student student sits in a lecture hall while class is being dismissed at the University of Texas at Austin on Feb. 22, 2024 in Austin, Texas. Brandon Bell | Getty Images The Trump administration announced on Thursday that it will offer federal student loan borrowers who sign up for autopay a 1-percentage-point reduction on their interest rate, starting July 1 . Borrowers on autopay currently have access to a 0.25-percentage-point discount. Federal student loan holders who aren't already enrolled in autopay have until Sept. 30 to do so, if they want to benefit from the lower interest rate. The discount will last through June 30, 2028. "The Trump Administration is making student loan repayment easier than ever, and borrowers should not wait to take advantage of this temporary interest rate reduction to stay on track for key student loan benefits," Under Secretary of Education Nicholas Kent said in a statement.