Education Department Extends Student Loan Autopay Discount Deadline To December

The U.S. Department of Education has extended the enrollment deadline for a new student loan interest rate discount from Sept. 30 to Dec. 31, 2026, the agency announced Tuesday, according to Money.com. Borrowers with federal Direct Loans originated after July 1, 2012 who enroll in autopay can now receive a 1% interest rate reduction, up from the standard 0.25% autopay discount, through June 30, 2028.

The rate cut is available to borrowers not currently enrolled in autopay, as well as those transitioning out of the discontinued SAVE repayment plan, which was terminated in March after facing legal challenges. Borrowers in default can also qualify if they bring their accounts back into good standing. For the average federal borrower, who holds $39,547 in debt according to the Education Data Initiative, the discount would cut monthly payments by roughly $20.

The change comes as an estimated 7 million borrowers remain on the SAVE plan and face a July 1 deadline that starts a 90-day countdown before they are automatically moved into the least flexible of the department's new repayment plans. It also follows a separate Education Department move to raise interest rates on new undergraduate, graduate and parent PLUS loans for the 2026-2027 academic year.