Want to save on student loan payments? Here's how to get a discount.

Core Impact Points

• The interest rate discount is available to borrowers with government loans issued after July 1, 2012, and is scheduled to remain in effect until June 30, 2028.
• Borrowers can enroll in automatic payments for free on their loan servicer's website and will need to provide their bank account information to enable monthly payments.
• The Urban Institute notes that the financial benefits of an interest-rate cut on student loans may be minor, but the savings could be significantly higher for larger loan amounts.
• Roughly 9.5 million Americans, or 1 in 5 federal student loan borrowers, are in default, meaning they are more than nine months behind on their payments.
• The Education Department aims to double the number of student loan borrowers enrolled in automatic repayments to roughly 80%, the figure before the pandemic.
• Borrowers who enroll in automatic loan payments could face overdraft fees if they exceed their account balance, and should track their account balance to avoid these fees.