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Student Loan Deadline to Secure Lower Interest Rates Extended Last Minute

The Education Department pushed back the deadline after what Secretary McMahon called a "very successful" enrollment period.

The U.S. Department of Education has extended the deadline for borrowers to enroll in auto pay for student loans, allowing them to secure a 1 percent interest rate reduction. Initially, the deadline was set for Tuesday, but it has now been pushed back to December 31. This extension is part of an initiative to increase the number of Americans who pay off their student loans automatically, which has so far resulted in 1.7 trillion dollars in outstanding balances nationwide.

Nearly two million borrowers have already enrolled in auto pay, driving up repayment rates and improving the overall health of the federal student loan portfolio. Department officials hope this extension will encourage even more borrowers to enroll before the end of 2026.

Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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