US Borrowers Get 1% Student Loan Rate Cut Through 2028 if Enrolled in Auto Pay by Year-End

U.S. student loan borrowers can secure a temporary 1% interest rate reduction by enrolling in automatic payments before Dec. 31, 2026, the Department of Education said, offering relief well above the standard servicer discount. The reduced rate runs through June 30, 2028, for eligible borrowers, who must stay enrolled in auto pay and meet all eligibility requirements. Typically, auto-pay enrollees receive only a 0.25% reduction from servicers. Loans must have originated after July 2012 to qualify. That includes borrowers in the now-defunct SAVE Plan and other lawful repayment plans, as well as those currently in default who bring their loans back into good standing, according to a Department of Education press release.