Federal student loan borrowers have until September 30, 2026, to enroll in automatic payments and qualify for a temporary reduction in their interest rate.
The benefit began July 1 and will remain available through June 30, 2028, for eligible borrowers who enroll in autopay by the deadline.
How the interest rate reduction works
Borrowers enrolled in autopay will receive a total interest rate reduction of 1%. The standard discount for automatic payments is 0.25%, while the temporary program adds another 0.75 percentage points.
The reduction applies automatically to eligible borrowers who were already enrolled in autopay when the benefit began on July 1. They do not need to take additional action.
Who can qualify
The temporary reduction is available for certain federal Direct Loans that were disbursed on or after July 1, 2012.
Borrowers whose loans are currently in default are excluded unless they return their loans to good standing. The benefit applies to eligible federal loans rather than private student loans.
How to get the lower rate
Borrowers who are not already enrolled in autopay must sign up through their loan servicer by 11:59 p.m. Eastern Time on September 30, 2026.
Once enrolled, eligible borrowers can receive the 1 percentage point reduction through June 30, 2028. Borrowers can check their loan account or contact their servicer to confirm whether they are enrolled and receiving the benefit.