Student-loan borrowers have 1 month to enroll in a temporary repayment benefit
Student-loan borrowers have until September 30 to enroll in autopay to receive a temporary 1-percentage-point interest rate reduction for two years. This incentive is part of a broader effort to improve repayment rates on federal student loans.
Why it matters
This deadline is critical for borrowers looking to mitigate the impact of higher interest rates and recent changes to federal repayment plans.
Student-loan borrowers who enroll in autopay can receive an interest-rate reduction. Brendan SMIALOWSKI / AFP via Getty Images Student-loan borrowers can enroll in autopay by September 30 to receive an interest rate reduction. The benefit is available for 2 years, and borrowers who default are ineligible. It comes as borrowers are navigating higher bills from Trump's repayment overhaul. The deadline for student-loan borrowers to receive a lower interest rate is fast approaching. Borrowers who enroll in autopay by the end of the day on September 30 will receive a temporary 1-percentage-point reduction on their student-loan interest payments, starting immediately. The benefit, which took effect July 1 for borrowers already enrolled in autopay, will last through June 30, 2028. A borrower would see moderate savings over the two-year period: A graduate program borrower with $50,000 in student debt and a 7.94% interest rate could save nearly $23 a month.
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