US Education Department Extends Student Loan Auto Pay Benefit Deadline

The U.S. Department of Education has extended the deadline for federal student loan borrowers to enroll in auto pay and receive a temporary 1% interest rate reduction. The new deadline is December 31, 2026, moved from September 30, 2026. This benefit, applicable to eligible federal direct loans issued after July 1, 2012, will remain active until June 30, 2028, aiming to help more borrowers reduce long-term interest accrual.