Here’s the new way to significantly reduce the interest rate on your student loans

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Borrowers who enroll in autopay will receive the benefit starting July 1

Published: June 18, 2026 at 1:18 p.m. ET

Setting and forgetting your student-loan payments could soon give you a big discount.

Starting on July 1, borrowers who allow their servicer to auto-debit their monthly student-loan payment will receive a 1% interest-rate reduction for the next two years, the Education Department announced Thursday. Already, borrowers who enroll in auto-debit receive a 0.25-percentage-point discount.