The Department of Education is offering a temporary interest rate reduction for federal student loan borrowers who enroll in automatic payments. Borrowers who sign up between July 1 and September 30 will qualify for a 1-percentage-point rate reduction through June 30, 2028, while those already on autopay will automatically receive a 0.75 percentage-point cut.
The specifics of the initiative include:
- New Autopay Enrollments: Borrowers who enroll in automatic payments from July 1 through September 30 will receive a temporary 1-percentage-point interest rate reduction lasting until June 30, 2028.
- Existing Autopay Enrollments: Borrowers already enrolled in autopay will automatically receive a 0.75 percentage-point reduction in interest rates.
- Policy Goal: Led by the Department of Education under Secretary Linda McMahon, the administration introduced this incentive to encourage borrowers to stay in or return to active repayment.
To check your eligibility or enroll in auto-pay, you can visit the official StudentAid.gov portal. For further updates on how this reduction applies to your specific loan servicing account, visit your loan servicer’s platform.
