Last call for student loan borrowers to lock in added discount

Student loan borrowers, Sept. 30 is the final deadline to save a little extra on student loan repayments.

The Department of Education quadrupled its interest rate discount for federal student loan borrowers who enroll in autopay, raising it from 0.25% to a full 1%, but only if borrowers sign up by 11:59 p.m. ET, Sept. 30. The temporary benefit runs through June 30, 2028, and is only for federal student loans in repayment status. After June 30, 2028, the autopay discount reverts to 0.25%, smaller but still worthwhile, experts said.

With millions of Americans with student loans struggling financially, discounts could provide people with some breathing room until inflation cools, student loan experts said. Annual inflation was 3.4% in August and the core rate, less the volatile food and energy sectors, stood at 2.4%. Both were higher than the Federal Reserve's 2% target.

"Borrowers are already carrying enough financial pressure, so when there’s an opportunity to reduce the cost of their student debt, we want to make sure they can take full advantage of it," said Ken Ruggiero, chief executive of the private online student loan lender Ascent. "Don't leave savings on the table."

Since the quadrupled discount began July…

Original source: https://www.usatoday.com/money/