Federal Student Loan Borrowers Face Sept. 30 Deadline for 1-Point Autopay Rate Cut

Federal student loan borrowers have until Sept. 30, 2026, to enroll in autopay and qualify for a temporary one-percentage-point interest rate reduction, the U.S. Department of Education said. The reduction lasts only through June 30, 2028, and applies solely to borrowers in active repayment whose loans originated after July 1, 2012. Those already enrolled in autopay will see rates adjust automatically after the deadline. Borrowers in delinquency or default may be excluded. Delinquent borrowers can regain good standing by paying past-due amounts or switching repayment plans; defaulted borrowers face consolidation or rehabilitation timelines of up to six weeks and nine months, respectively — both past the deadline. The offer aims to move borrowers off the defunct Saving on a Valuable Education plan into active repayment. Some SAVE borrowers face a Sept. 29 exit deadline. Servicers are processing plan transfers within a day, leaving time to enroll.