Federal Student Loan Auto Pay Discount Increases to 1%
Federal student loan borrowers enrolled in Auto Pay may now qualify for up to a 1% interest rate reduction. Learn what changed, key deadlines, and whether you need to take action.
The Department of Education has announced several changes for student loan borrowers this year, and one important update is worth pointing out.
As of July 1, 2026, federal student loan borrowers enrolled in Auto Pay can receive an interest rate reduction of up to 1%, an increase from the prior 0.25% discount.
What You Need to Know
Already enrolled in Auto Pay?
Good news! You don't need to take any action. Your interest rate discount will be updated automatically.
Not enrolled yet?
Contact your servicer to enroll in auto pay before the deadline.
Not sure who your loan servicer is?
You can find your loan servicer by logging into your account at StudentAid.gov or by calling the Federal Student Aid Information Center at 800.433.3243. Important Dates
To receive the interest rate reduction, you must enroll in auto pay by 11:59 p.m. Eastern time by September 30, 2026.
This is temporary. The increased rate reduction is set to expire on June 30, 2028.
For additional details, be sure to review the Department of Education's announcement.
Questions or unsure of where you are currently? Reach out to the Youth and College Support Team at college@trfcu.org. They’re happy to help, make sure you are on the right path, and answer any questions you may have.