U.S. Department of Education Offers 1% Auto-Pay Discount for Federal Student Loans with Sept. 30 Deadline

The U.S. Department of Education has implemented a temporary one-percentage-point interest rate reduction for qualifying Federal Direct Loan borrowers who enroll in auto-pay. This discount, which took effect on July 1, 2026, is available through June 30, 2028, and eligible borrowers must enroll by September 30, 2026.