US Extends Student Loan Autopay Discount Deadline to Dec. 31, Locking 1-Point Rate Cut Through 2028

The U.S. Department of Education extended the enrollment deadline for a 1 percentage point interest rate reduction on federal student loans to Dec. 31, 2026, pushing back the prior cutoff of Sept. 30. Borrowers who enroll in automatic payments by the new date, along with those already enrolled, will receive the reduced rate through June 30, 2028. Nearly 2 million federal student loan borrowers have enrolled since the discount launched over the summer, the department said. Before July 1, 2026, the standard autopay discount was 0.25 percentage points. Eligibility is limited to Direct Loan program debt disbursed on or after July 1, 2012, covering Direct Subsidized, Unsubsidized, PLUS and Consolidation Loans. Loans must be in good standing; Federal Family Education Loans and privately held debt are excluded. Federal student loans carry an average interest rate of 6.54%. Outstanding federal and private student loan debt exceeds $1.7 trillion across more than 42 million Americans.