Eligible federal student-loan borrowers have until Wednesday, September 30, to enroll in automatic payments for a temporary one-percentage-point interest-rate deduction, according to Pennsylvania’s Attorney General.
The offer applies to certain federal Direct Loans made after July 1, 2012. Borrowers who qualify and enroll by the deadline may receive the reduced rate through June 30, 2028.
Borrowers should confirm their eligibility directly with their federal loan servicer before making any change. The Attorney General’s notice does not mean every federal or private student loan qualifies, and the savings will vary based on the loan balance, interest rate and repayment period.
Automatic payment authorizes a servicer to withdraw scheduled payments from a bank account. Before enrolling, borrowers should verify the payment amount, withdrawal date and account information. They should also keep a confirmation and review later statements to make sure the deduction was applied.
The deadline may attract scam attempts. Borrowers should use only their verified loan-servicer account or an official federal student-aid website. They should not pay an outside company for enrollment, provide login credentials to an unsolicited caller, or send money through gift cards, cryptocurrency or wire transfer.
Anyone who believes a company misrepresented the program can contact the Pennsylvania Office of Attorney General’s Bureau of Consumer Protection. Borrowers outside Pennsylvania should contact their own state consumer-protection office or the federal student-aid system.
