Education Department cuts student loan interest rate

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The U.S. Education Department announced a 1 percent interest rate reduction on student loans for borrowers using automatic payments starting July 1, effective through June 30, 2028. Borrowers must enroll in auto pay by September 30 to qualify for this benefit.

The Education Department said Thursday it will reduce interest rates by 1 percent on student loans for borrowers enrolled in automatic payments starting on July 1.  The reduction will be in effect through June 30, 2028. In order to benefit, borrowers must enroll in auto pay by Sept. 30 of this year — if they…