r/StudentLoans • u/MamaWils2_0 • 1d ago

Advice Interest rate reduction?

Where are we supposed to see the reduction of interest rate for changing plans and being enrolled in autopay by end of September?

I have Aidvantage. I applied for my RAP plan Sept 30 and was already enrolled in autopay. got approved within a week and payments are due next month. I am not sure where I am supposed to see the interest rate reduction on the website?

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u/rapid_proceedings 1d ago

Check your account details page on Aidvantage, there should be a section that breaks down your interest rate and any discounts applied. Mine shows the autopay reduction as a separate line item under the rate info, took about a billing cycle to appear after I switched plans

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u/MamaWils2_0 1d ago

Okay I will check and give it a month before contacting them. I was not sure if it was because my plan wasn’t approved until Oct even though I applied to switch in Sept 

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u/girl_of_squirrels human suit full of squirrels 1d ago

It's new and temporary, and they're probably going to have to backdate it on the accounts where it is applicable

Just going to throw this here.... They pushed out the deadline for that temporary 1% interest rate decrease for autodebit, see https://studentaid.gov/announcements-events/auto-pay-interest-rate-reduction

Starting on July 1, 2026, the interest rate reduction for borrowers enrolled in auto pay went from 0.25% to 1%. The reduction is available for borrowers with Direct Loans disbursed on or after July 1, 2012.

If you’re currently enrolled in auto pay, you do not need to take any action and you don’t need to contact your loan servicer to receive this benefit. You’ll receive the larger interest rate reduction through June 30, 2028, as long as you remain in auto pay and continue repayment on your federal student loans. If you move to a forbearance or deferment or cancel auto pay, your interest rate reduction will stop, too.

If you’re not currently enrolled in auto pay, you can easily sign up to have your monthly payment automatically taken from your bank account. Auto pay saves you time and money over the life of your federal student loan, and it helps you make sure your payment is on time every month. Signing up is easy through your loan servicer:

To get this benefit, borrowers must enroll in auto pay by 11:59 p.m. Eastern time on Dec. 31, 2026.