ED Extends Interest Rate Reduction Initiative Deadline for Borrowers to Enroll In Auto Pay

The U.S. Department of Education has extended the deadline for federal student loan borrowers to enroll in auto-pay to receive a 1% interest rate reduction. The new deadline is December 31, 2026, a three-month extension from the original September 30, 2026, deadline. This temporary benefit will last through June 30, 2028, and aims to help borrowers reduce long-term interest accrual and improve repayment rates.