Save Money on Your Student Loans by Using Auto Pay

Enrolling in automatic payments for your student loans can save you money, ensure you never miss a payment, and eliminate the hassle of manually paying your monthly bill.

When you opt in to auto pay (also known as auto debit), your student loan servicer automatically deducts your monthly payment from your bank account. As an incentive for enrolling, you’ll pay 0.25% less in interest each month.

How to Sign Up for Auto Pay

The best way to set up automatic payments is through your student loan servicer’s website. Alternatively, you can call your loan servicer, but the hold times may be extremely long.

• If you don’t know who your loan servicer is, follow these instructions.
• To set up an account on your loan servicer’s website, follow these instructions.

What Happens If I Can’t Afford My Automatic Payment?

Your loan servicer will send you a reminder ahead of each withdrawal. That will give you time to move money into the appropriate account ahead of payment.

If you don’t have enough cash to cover the payment, you still have options. Start by contacting your loan servicer. They can help you pause auto pay for a month and set a custom payment amount.

The Payment Pause Cancelled Auto Pay

The payment pause spanned more than three years. A lot changed during that time, so servicers couldn’t start automatically withdrawing payments without borrower confirmation of the account information. As a result, you will need to sign up for auto pay even if you were enrolled in it before the pause.