Deadline to reduce your student loan interest rate extended: What to know

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States with the Highest Average Student Debt

States with the Highest Average Student Debt

(NEXSTAR) – A day before the deadline was set to end, the Education Department extended the window in which student loan borrowers can get a small reduction on their interest rates.

Earlier this summer, the Education Department announced that borrowers could get a 1% decrease on their interest rates through the end of June 2028. At the time, borrowers had until Sept. 30 of this year to apply.

On Tuesday, just before that deadline, the Education Department said it would extend the application deadline.

How to get the 1% interest rate reduction

It’s relatively simple. You need to enroll in auto pay on your student loans by the new deadline, which is Dec. 31, 2026.

Earlier this year, the Education Department said only about 40% of borrowers were paying their loans via auto pay. Nearly 2 million........

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