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Education Department Lowers Student Loan Interest Rates for Two Years

NYT > Business·June 18, 2026
Education Department Lowers Student Loan Interest Rates for Two Years

The Education Department is lowering interest rates on federal student loans by up to one percentage point for a period of two years. This reduction is in response to high default rates among borrowers. The move aims to provide relief to students and make loan repayment more manageable. By reducing interest rates, the department hopes to decrease the likelihood of defaults and support borrowers in repaying their loans.

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