Last call for student loan borrowers to lock in added discount

Key Points:

• The Department of Education has increased the interest rate discount for federal student loan borrowers who enroll in autopay from 0.25% to 1%, but borrowers must sign up by 11:59 p.m. ET on September 30 to qualify for the temporary benefit lasting until June 30, 2028.
• This enhanced autopay discount can significantly reduce monthly payments and the total interest accrued over the life of the loan, offering substantial savings especially for borrowers with high-interest loans.
• Autopay enrollment also helps ensure timely payments, which can improve borrowers' credit scores, an important factor in securing favorable loan and credit terms.
• Borrowers can enroll in autopay by logging into their loan servicer account or StudentAid.gov to add bank information, with the option to pay more than the minimum monthly amount to accelerate loan payoff.
• Even though the 1% discount period has already started, signing up before the September 30 deadline still provides over 18 months of savings, making it a valuable opportunity for those repaying federal student loans.