Federal Student Loan Auto-Pay Discount Rises to One Percent

Federal Direct Loan borrowers can now receive a one-percentage-point interest rate reduction by enrolling in auto-pay. This discount is effective from July 1, 2026, to June 30, 2028, and existing users will automatically benefit. New eligible borrowers must enroll by September 30, 2026, to secure the reduction, potentially lowering their repayment costs.