Trump's student loan rate cut excludes most of the 9 million borrowers in default
The U.S. Education Department announced a 1% interest rate reduction for federal student loans for borrowers enrolled in automatic payments. However, the policy excludes the 9 million borrowers currently in default unless they consolidate their loans.
Why it matters
The policy change aims to incentivize repayment but faces criticism for failing to provide immediate relief to the most vulnerable borrowers in default.
The Education Department on Thursday announced a reduction in interest rates for federal student loans , describing it as part of a plan to make higher education more affordable.
The article presents the policy details alongside the limitations and criticisms, maintaining a balanced perspective.
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