schools
Student loan borrowers will get an interest rate cut if they sign up for auto pay
By Cory Turner | NPR at LAist (KPCC / Southern California Public Radio)
· June 18, 2026
· 1 min read
.(Daniel de la Hoz / Moment RF via Getty Images)
Student loan borrowers who enroll in automatic payments will get a much bigger discount on interest starting July 1, the U.S. Department of Education says.
Auto pay has long offered a modest discount off borrowers' interest rate — .25 percentage p...
Key takeaway Auto pay has long offered a modest discount off borrowers' interest rate — .
Why this matters in The Los Angeles
The increased discount for auto pay enrollment will likely have a significant impact on Los Angeles students and recent graduates struggling with student loan debt. With the nation's student debt portfolio reaching $1.7 trillion, many borrowers in the Los Angeles area are probably feeling overwhelmed by their loan balances. The temporary interest rate cut of one full percentage point could provide much-needed relief, allowing borrowers to pay down their balances more quickly. As the city's students prepare for the new academic year, they should be aware of this opportunity to reduce their debt burden. Local schools and universities may also want to inform their students about the benefits of enrolling in auto pay, particularly with the deadline to sign up for the discount set for September 30. This change, combined with the introduction of new repayment plans, may help alleviate some of the financial stress faced by Los Angeles borrowers.
About this story
Original reporting by LAist (KPCC / Southern California Public Radio) . The Los Angeles surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
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Category: schools ·
Published: June 18, 2026 ·
Source: LAist (KPCC / Southern California Public Radio) ·
Reading time: 1 min
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What is this story about? .(Daniel de la Hoz / Moment RF via Getty Images)
Student loan borrowers who enroll in automatic payments will get a much bigger discount on interest starting July 1, the U.S. Department of Education says.
Auto pay has long offered a modest discount off borrowers' interest rate — .25 percentage p...
When was this published? This article was first published on June 18, 2026 by LAist (KPCC / Southern California Public Radio) and curated for The Los Angeles readers.
Who reported this story? This story was reported by Cory Turner | NPR at LAist (KPCC / Southern California Public Radio). To learn more about how The Los Angeles selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more schools coverage from The Los Angeles, or browse our daily briefing and topic hubs .
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