- Lower interest rate for auto pay loan repayments
- Expansion of several successful SUNY programs
- Wisconsin college launches new apprenticeship programs
Lower interest rate for auto pay loan repayments
The U.S. Education Department (ED) on Thursday announced that federal student loan borrowers enrolled in auto pay will be eligible for a temporary 1% interest rate reduction beginning July 1.
Borrowers who enroll in auto pay by September 30 or who are already enrolled will benefit from the interest rate cut through June 30, 2028, ED said in a release.
“The Trump Administration is making student loan repayment easier than ever, and borrowers should not wait to take advantage of this temporary interest rate reduction to stay on track for key student loan benefits,” said Under Secretary Nicholas Kent. “No matter your age or college credential, we want to make sure that borrowers can understand their options and choose a repayment option that works best for them. This interest rate reduction will help borrowers as they consider new, affordable repayment plans and work to repay their loans on time. We expect this temporary incentive to drive up repayment rates and significantly improve the overall health of the federal student loan portfolio.”
Prior to the Covid pandemic, more than 80% of student loan borrowers in active repayment were enrolled in auto pay, which ensures that borrowers make monthly, on-time payments, according to the department. Today, only 40% are enrolled.
The interest rate change comes as ED prepares to implement two new student loan repayment plans on July 1.
Expansion of several successful SUNY programs
New York Gov. Kathy Hochul has announced the expansion of SUNY Reconnect and CUNY Reconnect as part of the state’s new budget to help prepare more adult learners for success in the workforce.
Through SUNY Reconnect and CUNY Reconnect, the state provides free tuition, fees, books and supplies for eligible adults ages 25-55 to pursue an associate degree in a high-demand field. Hochul’s budget expands SUNY Reconnect and CUNY Reconnect to include associate degrees in supply chain/logistics, air traffic control and aviation management, and emergency management.
The new budget also makes it easier for adult learners to return to college to pursue nursing if they have a prior degree in a different field, in an effort to grow the healthcare workforce by 20%. In addition, the budget expands SUNY Reconnect to include eligible associate degree programs at bachelor’s-granting institutions.
SUNY Reconnect and CUNY Reconnect began at New York community colleges in fall 2025. Statewide, colleges have enrolled more than 12,000 students in the programs.
In addition, SUNY this week announced the expansion of its nationally known Advancing Success in Associate Pathways (ASAP) and Advancing Completion through Engagement (ACE) to serve 10,000 students at 44 SUNY campuses by this fall.
The expansion is thanks to an extra $8 million infused into the program through the fiscal year 2026-27 state budget, bringing the total funding for the program to $20 million.
In addition, SUNY has received a $2 million renewal commitment from Brightway, which will extend its program’s support to more student parents at seven community colleges who are primary caregivers. The funding will help with their childcare costs, access to emergency cash assistance and support for winter and summer courses.
The renewal commitment, which builds on an initial matched commitment of $1 million made to SUNY in 2023, will also expand personalized career guidance, strengthen connections to internships and employment opportunities, and pilot a new program supporting ASAP student parents transferring to SUNY baccalaureate campuses that offer ACE, according to a release.
Wisconsin college launches new apprenticeship programs
Western Technical College is expanding career-connected education opportunities with the launch of two new registered apprenticeship programs: surgical technologist and K-12 education assistant.
Both programs are structured as registered apprenticeships through the Wisconsin Department of Workforce Development and allow students to “earn while they learn,” reducing financial barriers while helping employers develop and retain skilled talent, according to the college.
Funding for the programs comes from a U.S. Education Department grant to expand apprenticeships in rural communities.
“By supporting both the apprentice and the employer, we can expand access to career pathways while helping address workforce shortages in healthcare and education throughout our rural communities,” said Tara Keifer, project manager for the grant at Western Technical College.
