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Interest-Rate Cap on Loans Is Now Automatic for Qualifying Service Members

The Department of Education on Monday made it easier for members of the armed forces to pay lower interest rates on their federal student loans. Service members who qualify for a cap on their interest rates under the Higher Education Opportunity Act have had to request that the benefit be applied to their loans. But the department’s new guidance directs student-loan servicers to consult a government database and automatically apply the cap for qualifying borrowers.

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