Student-loan borrowers have until September 30 to sign up for autopay and get a temporary interest rate reduction of 1%. This benefit, which started on July 1, will last for two years and is aimed at helping borrowers manage their payments better. If you enroll in autopay by the deadline, your interest rate will drop by 1% right away. For example, someone with $50,000 in student loans at a 7.94% interest rate could save about $23 a month. Borrowers already using autopay will see an additional reduction on top of their current savings. However, borrowers who are in default on their loans cannot take advantage of this benefit until they are back in good standing. If they temporarily stop payments (deferment or forbearance), the interest rate reduction will also end. The Department of Education hopes that these changes will encourage more borrowers to make their payments and improve the overall situation of federal student loans.
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