schools
Student loan borrowers can get a 1% interest rate cut with one simple change
By Scripps News Group at KXXV (ABC 25) News
· June 19, 2026
· 2 min read
Federal student loan borrowers enrolled in automatic payments will be eligible for a 1% interest rate reduction beginning July 1, the Department of Education said.Borrowers who are already enrolled in auto pay, or who sign up by Sept. 30, 2026, will receive the temporary rate reduction through Ju...
Key takeaway Officials said more than 80% of student loan borrowers in active repayment were enrolled in autopay before the COVID-19 pandemic, compared with about 40% today.
Why this matters in The Waco
For students and families in Waco , the upcoming 1% interest rate cut for federal student loan borrowers enrolled in automatic payments could bring significant relief. With many local students attending colleges and universities in the area, this change has the potential to impact a substantial number of residents. The fact that over 80% of student loan borrowers were enrolled in autopay before the pandemic, compared to about 40% today, suggests that many borrowers in Waco may have fallen behind on their payments. The introduction of new repayment plans, such as the income-driven Repayment Assistance Plan and the Tiered Standard repayment plan, may also help borrowers in the area better manage their debt. As the Department of Education aims to make repayment easier and encourage on-time monthly payments, Waco residents should take note of these changes and explore their options to determine the best course of action for their individual circumstances.
About this story
Original reporting by KXXV (ABC 25) News . The Waco surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KXXV (ABC 25) News . Have a tip or correction? Contact our newsroom .
Category: schools ·
Published: June 19, 2026 ·
Source: KXXV (ABC 25) News ·
Reading time: 2 min
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Frequently asked about this story
What is this story about? Federal student loan borrowers enrolled in automatic payments will be eligible for a 1% interest rate reduction beginning July 1, the Department of Education said.Borrowers who are already enrolled in auto pay, or who sign up by Sept. 30, 2026, will receive the temporary rate reduction through Ju...
When was this published? This article was first published on June 19, 2026 by KXXV (ABC 25) News and curated for The Waco readers.
Who reported this story? This story was reported by Scripps News Group at KXXV (ABC 25) News. To learn more about how The Waco selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more schools coverage from The Waco, or browse our daily briefing and topic hubs .
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