07/14/2026
Some federal student loan borrowers may soon qualify for a larger interest rate discount by enrolling in automatic payments.
The U.S. Department of Education announced that eligible borrowers who sign up for autopay can receive a 1-percentage-point reduction in their interest rate. The temporary discount is expected to last through June 30, 2028.
Borrowers already enrolled in autopay are expected to receive the discount automatically. Others must enroll by Sept. 30, 2026, to qualify.
Not every loan is eligible. The discount applies to certain federal Direct Loans, including Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Direct Consolidation Loans. Private student loans and FFEL loans are not included.
Borrowers must also have loans in good standing, and the loans generally must have been disbursed on or after July 1, 2012.
For borrowers managing student loan payments, even a temporary rate discount may be worth reviewing as part of their broader monthly cash flow.
Source:
To qualify for the U.S. Department of Education's new interest rate discount on student loans, borrowers must meet several requirements. Here's what to know.
