The U.S. Department of Education announced a temporary federal student-loan autopay incentive that lowers interest rates by a full percentage point for two years starting July 1. Under the new terms, borrowers using autopay will receive a greater reduction than the current 0.25 percentage-point benefit. The program applies to borrowers who are already enrolled in autopay or opt in before Sept. 30, and it expires June 30, 2028. Education Under Secretary Nicholas Kent said the change is intended to help borrowers pay down balances faster and take advantage of discharge-related repayment pathways. Separately, other federal actions are cited in coverage as part of broader shifts to student-debt administration—adding urgency for campus financial-aid offices and student success teams tracking how rate changes affect repayment decisions.