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Just Days Left for Student Loan Borrowers to Get Interest Rate Discount for Making This One Change
Eligible borrowers can save on interest through 2028 if they enroll in automatic payments by Sept. 30, the Education Department said.
- Millions of federal student loan borrowers have only until Wednesday, September 30, to enroll in autopay and secure a temporary 1-percentage-point interest rate reduction from the Education Department.
- The Education Department launched the initiative on July 1, 2026, allowing borrowers to quadruple their standard 0.25% interest rate savings by switching to automatic payments.
- A borrower with $50,000 in debt and a 7.94 percent interest rate could save nearly $23 per month, according to the Education Department; Kevin Thompson, CEO, called the reduction 'substantial' for larger balances.
- Finance expert Michael Ryan noted that while autopay prevents missed payments, the reduction 'is a much weaker tool' for borrowers facing underlying affordability issues.
- Under Secretary of Education Nicholas Kent stated the Trump Administration is 'making student loan repayment easier,' though the temporary reduction reverts to normal levels on June 30, 2028.
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Consumer Alert: Federal Student Loan Borrowers Should Act Now to Enroll in Autopay for 1% Interest Rate Deduction - PA Office of Attorney General
HARRISBURG – Attorney General Dave Sunday is reminding federal student loan borrowers that Wednesday, September 30 — this Wednesday — is the deadline to enroll in autopay to receive a one percent interest rate deduction on eligible federal student loans. Borrowers who enroll in autopay in time will retain the one-percent interest deduction through June […]
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