If you have federal student loans, signing up for automatic payments could soon save you money on interest.
Starting July 1, borrowers who enroll in — or who are already enrolled in — auto pay will receive a one percentage point cut on their interest rate. The discount is set to last for two years.
The move comes as the Trump administration looks to encourage more borrowers to get back on track with repayment. Total federal student loan debt in the United States is now approaching $2 trillion.
Borrowers who have been putting off repayment may want to look into whether auto pay enrollment could help reduce what they owe in interest over time.
