WASHINGTON (AURN News) — Federal student loan borrowers now have three additional months to sign up for a temporary interest rate reduction. The Education Department announced Tuesday that it extended the autopay enrollment deadline from Sept. 30 to Dec. 31.
Eligible borrowers who enroll in autopay by Dec. 31 can receive a 1-percentage-point interest rate reduction through June 30, 2028. For example, a 6% interest rate would drop to 5%.
The department says eligible borrowers already using autopay receive the adjustment automatically. Borrowers who are not enrolled in autopay can sign up through their loan servicer account by entering their bank information and confirming the payment amount.
The autopay extension does not change the separate 90-day deadline for borrowers leaving the now-ended SAVE repayment plan.
Borrowers must remain enrolled in autopay and continue meeting eligibility requirements to keep the interest rate reduction.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @ebonymcmorris & @aurnonline.
