Starting July 1, the U.S. Department of Education will reduce interest rates for federal student loan borrowers who enroll in autopay, offering a larger temporary incentive than the current program. Under the change, autopay borrowers will receive a full percentage-point reduction instead of the existing 0.25-percentage-point drop. The benefit will apply for loans disbursed on or after July 1, 2012, for borrowers who are already on autopay or opt in before Sept. 30. The Department estimates the policy will cost about $6 billion and will expire June 30, 2028. The change lands as borrowers continue to navigate higher education costs and provides additional leverage for institutions and financial aid offices to encourage enrollment in federal loan repayment automation ahead of the incentive window.