Federal student loan program adds autopay deadline extension and new default assistance portal
The Education and Treasury departments have pushed the autopay deadline to Dec. 31 for a 1-point interest-rate cut and launched an online Defaulted Loans Support Center.
The U.S. Department of Education announced that the deadline for enrolling in autopay to obtain a temporary 1-percentage-point interest-rate reduction has been moved from Sept. 30 to Dec. 31, and the discount will remain in effect through June 30, 2028 for eligible Direct Loans. Nearly 2 million borrowers have already taken advantage of the autopay incentive. In parallel, the Treasury and Education departments unveiled the Defaulted Loans Support Center, an online portal that replaces a mail-and-fax process, allowing borrowers in default to compare repayment options, apply for loan rehabilitation or consolidation, make payments, and track status.
Treasury Secretary Scott Bessent and Secretary of Education Linda McMahon highlighted the partnership as a step toward greater efficiency and fiscal responsibility for the $1.7 trillion federal student-loan portfolio. Experts note that while the autopay extension offers modest savings, the real challenge lies in helping defaulted borrowers re-enter repayment.
Why it matters
The measures could lower borrowing costs for current payers and simplify debt recovery for millions in default.
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