Student-Loan Borrowers Have Until September 30 to Claim Temporary Interest Rate Reduction
Federal student-loan borrowers have until September 30, 2026, to enroll in autopay and receive a temporary one-percentage-point reduction on their interest rates. This benefit is part of broader changes introduced by the Education Department as part of federal repayment reforms. The rate cut will be available through June 30, 2028, for those who enroll before or were already enrolled in autopay. The standard autopay discount is typically 0.25 percentage points; under this temporary program, an additional 0.75-point reduction brings the total to one point. Borrowers must remain on autopay and have eligible Federal Direct Loans issued after July 1, 2012, or return loans in default to good standing. The rate cut is part of a larger overhaul that includes new repayment plans like RAP (Repayment Assistance Plan) and the Tiered Standard Repayment Plan. These changes are replacing previous programs such as the Biden-era SAVE plan. The Education Department also recently corrected errors related to borrower income data in its National Student Loan Data System database.
