Education Department cuts student loan interest by 1 point for some borrowers as delinquencies rise
Summary
The Education Department announced a temporary 1 percentage point interest rate cut for some federal student loan borrowers who use automatic payments, as student loan delinquencies hit a 6-year high of 10.3%. The reduction aims to ease repayment costs but does not apply to all borrowers, with eligibility limited to those with qualifying federal Direct Loans who enroll in autopay.
Source
bskyEducation Department cuts student loan interest by 1 point for some borrowers as delinquencies risecbsnews.comKey quotes
· 3 pulledThe reduction – a temporary shave of 1 percentage point from borrowing costs — comes as 10.3% of student loans were delinquent.
The Education Department on Thursday said it is temporarily cutting interest rates for some federal student loan borrowers, a move aimed at easing repayment costs as delinquencies climb to their highest level in six years.
The temporary discount applies to eligible federal Direct Loan borrowers who use automatic payments.
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