Education Department Extends Student Loan Interest Rate Discount Deadline

The U.S. Education Department has extended the deadline for federal student loan borrowers to secure a 1 percentage point reduction in their interest rates until December 31, 2025. This extension allows nearly 2 million borrowers who signed up for autopay since the discount's launch to benefit from the reduced rates lasting until June 30, 2028. As of now, the average interest rate on federal student loans stands at 6.54%. This extension is important for over 42 million Americans holding $1.7 trillion in student debt, providing an opportunity for potential savings on interest costs.

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