The Trump administration is implementing a temporary 1 percent interest rate discount for federal student loan borrowers who enroll in automatic payments.This incentive, effective from July 2026 until June 2028, targets borrowers with federal Direct Loans issued after July 2012.The move coincides with a broader overhaul of federal student loan repayment plans designed to lower delinquency rates and address the growing 1.7 trillion dollar federal debt portfolio.Education Undersecretary
Nicholas Kent confirmed that the initiative aims to stabilize loan balances as the government introduces new income-driven repayment options.