Auto Pay Saves You Money on Student Loans

Starting July 1, federal student loan borrowers using auto pay will enjoy a one-percentage-point interest rate drop for two years — a major incentive designed to help pay down debt faster. If your rate is 6%, it’ll drop to 5%. This change is part of a broader overhaul including new grad student loan limits and a simplified repayment system. Borrowers on the SAVE plan may soon receive formal repayment notices. The Education Department is pushing hard to revive auto pay enrollment — which has plummeted from 83% in 2019 to just 40% — by offering this $6 billion incentive. To qualify, you must have loans taken out after July 1, 2012, and sign up for auto pay by September 30, 2026. Stay enrolled to keep the discount — a clear effort to reduce defaults and get more borrowers back on track. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/ce4cb0e296a18c88