Federal borrowers on autopay get a full percentage point off their interest rate through June 30, 2028 — if they enroll by December 31, 2026. Enter your loan to see what that is worth in dollars, compared with the regular 0.25-point discount and with paying manually.
Federal Direct Loans have long carried a 0.25-percentage-point rate reduction for borrowers who pay by automatic debit. In June 2026 the Education Department announced a temporary increase: from July 1, 2026 through June 30, 2028, the autopay reduction is a full 1 percentage point. Borrowers who were already on autopay got the extra 0.75 point automatically from their servicer. Everyone else has to enroll, and the deadline — originally September 30, 2026 — was extended to December 31, 2026.
The larger discount is not paid retroactively, so each month you wait is a month of savings you don't get back. After June 30, 2028 the reduction is scheduled to return to the usual 0.25 point for as long as you stay on autopay. The calculator assumes your monthly payment stays the same when your rate drops, so the savings show up as less interest and a slightly earlier payoff.
Estimates below assume a 6.52% rate (the 2026–27 undergraduate rate), the 10-year standard payment, a discounted rate starting December 2026, and staying on autopay at 0.25 point after June 2028. "Over the loan" compares autopay with never using autopay.
| Balance (payment) | Saved by June 2028 | Saved over the loan |
|---|---|---|
| $10,000 ($114/mo) | $156 | $406 |
| $25,000 ($284/mo) | $390 | $1,015 |
| $35,000 ($398/mo) | $546 | $1,421 |
| $50,000 ($568/mo) | $781 | $2,030 |
| $75,000 ($852/mo) | $1,171 | $3,045 |
| $100,000 ($1,136/mo) | $1,561 | $4,060 |
The rule of thumb: the temporary point is worth roughly 1% of your balance for each year it applies, so a borrower who starts in December 2026 gets about 19 months of it. Graduate borrowers with higher balances gain the most in dollars — $60,000 at 7.94% saves about $951 by June 2028.
If your payment is set by income under IBR or the new Repayment Assistance Plan (RAP), the discount doesn't change what you pay each month. It changes how much interest builds up. When your payment covers all the monthly interest, a lower rate means more of each payment goes to principal. Under RAP, unpaid interest on full, on-time payments is waived and the plan can match up to $50 of principal, so a borrower whose payment is below the monthly interest may see little dollar benefit from the rate cut. Because the payment doesn't follow the balance on these plans, use this calculator only when your payment covers the monthly interest; it will tell you if it doesn't.
Log in to your federal loan servicer's website (your StudentAid.gov account lists which servicer holds your loans), find automatic payments or auto debit, and authorize monthly withdrawals from your bank account before December 31, 2026. Keep the bank account funded: missed or reversed drafts can end autopay, and with it the discount. If you have loans at more than one servicer, enroll at each one.
Looking for more ways to cut your rate — refinancing private loans, employer repayment help and what doesn't work?
How to Lower Your Student Loan Interest Rate →What is the deadline for the 1% student loan autopay discount? December 31, 2026. The Education Department originally set September 30, 2026, then extended it. Borrowers enrolled by the deadline, or already enrolled, keep the 1-point reduction through June 30, 2028.
How much does the 1% autopay discount save? Roughly 1% of your balance for each year it applies. On a $35,000 balance at 6.52% with the standard $398 payment, starting in December 2026 saves about $546 in interest by June 2028 compared with not using autopay.
Do I get the discount if I'm already on autopay? Yes. Borrowers already enrolled kept their 0.25-point discount and their servicer added another 0.75 point automatically starting July 1, 2026. You don't need to re-enroll.
Do Parent PLUS and consolidation loans qualify? Yes, if they are Direct Loans disbursed on or after July 1, 2012 and in repayment. Older FFEL loans and private loans don't get the extra point.
Is the discount retroactive to July 1, 2026? No. It applies once you are enrolled, so the months before you sign up don't get the lower rate.
What happens after June 30, 2028? The reduction is scheduled to return to the standard 0.25 point for borrowers who stay on autopay.
How to Lower Your Student Loan Interest Rate — autopay, refinancing and employer help compared.
Student Loan Calculator — monthly payment and total interest for any loan.
Student Loan Repayment Calculator — Standard, IBR and RAP side by side.
Interest Capitalization Calculator — what unpaid interest adds to your balance.