Personal Finance

The U.S. Department of Education increased its federal student loan autopay interest rate reduction from 0.25% to 1% on July 1, 2026, for eligible Federal Direct Loans disbursed on or after July 1, 2012. The benefit runs through June 30, 2028, and borrowers not yet enrolled have until September 30, 2026, to sign up through their loan servicer. On a $20,000 undergraduate loan at 6.52%, the full 1% reduction lowers annual simple interest by roughly $200.

Freddie Mac increased its Flex Modification interest rate by 0.125 percentage points to 6.625%, effective August 14, 2026, up from 6.500% in place since June 12. The rate applies when servicers calculate terms for eligible delinquent borrowers seeking loan modifications, though Guide rules mean the posted rate does not automatically override a borrower's existing note rate in every case. On a hypothetical $250,000 balance with 25 years remaining, the rate change translates to roughly $19.58 more per month in principal and interest.

Mortgage servicer NewRez settled with approximately 47 states for $15.5 million after examiners found it had charged force-placed insurance premiums to more than 4,200 borrowers who already held active homeowners policies, causing at least $4.5 million in consumer harm. The settlement includes a $9.9 million administrative penalty, $1.09 million in examination costs, and $4.5 million in remediation already returned to affected borrowers. Going forward, NewRez must monthly test newly boarded loans for lender-placed insurance errors and report results to regulators, with a separate Washington State enforcement action still pending.

Enact, Essent, MGIC, National MI, and Radian each reported higher New Insurance Written in Q2 2026 compared to Q1, with purchase originations accounting for roughly 87% to 90% of new business at the insurers that disclosed a mix. The individual company figures do not add up to a published, reconciled industry total, and no single source confirms a 17% industry-wide volume increase for the quarter. For borrowers, PMI is generally required on conventional loans with less than 20% down and can be canceled in writing once the loan balance reaches 80% of the home's original value, with automatic termination required at 78%.

The July 2026 Producer Price Index showed no change in headline final-demand prices while the core measure, excluding food, energy, and trade services, accelerated to 0.4% from 0.1% in June, driven largely by a 6.5% monthly jump in portfolio-management prices. The PPI figures are preliminary and subject to revision, and no direct calculation is possible for how much the portfolio-management move will shift aggregate core PCE, which the BEA is scheduled to release on August 26. Household borrowing costs tied to short-term rates, including adjustable-rate mortgages and home-equity lines, remain sensitive to Federal Reserve policy, but the July PPI alone does not establish persistent inflation pressure or determine the next policy decision.