Pennsylvania’s top law enforcement official is reminding student loan borrowers of an upcoming deadline to receive a lower interest rate.
According to Attorney General Dave Sunday, borrowers with eligible federal loans dispersed on or after July 1st, 2012 should enroll in autopay before Thursday (10/1) to receive an interest rate deduction of one percent.
A lower interest rate means more of a borrower’s monthly payment can be applied to the loan principal rather than interest, which may help borrowers pay down their loan balance faster.
Borrowers, including parents and graduates, can enroll in autopay through their federal student loan servicer’s website. Borrowers already enrolled in autopay do not need to re-enroll since the interest rate deduction will automatically be applied to the account.