Borrowers must enroll in autopay by Sept. 30, 2026, to qualify unless they were already enrolled. The reduction is scheduled to remain available through June 30, 2028.

The change affects federal student-loan borrowers nationwide and gives them a specific action and deadline during a broader transition in the federal repayment system. The provision reduces the interest rate for eligible borrowers; it does not eliminate the loan balance or the requirement to make scheduled payments.

How the autopay provision works

Eligibility is tied to autopay enrollment. Borrowers who sign up by the Sept. 30, 2026, deadline can receive the 1% reduction during the period covered by the provision. Borrowers who were already enrolled in autopay also qualify.

The benefit is scheduled to end June 30, 2028. That end date means the reduction is not described as a permanent change to a borrower’s interest rate. The 1% figure refers to the interest-rate reduction itself, not to a uniform dollar amount that every borrower will save.

Because the provision is linked to federal loan repayment, borrowers will need to pay attention to their loan status and autopay enrollment. The reduction does not replace a borrower’s regular payment obligations.

When borrowers may enter repayment

Federal borrowers may enter repayment after leaving school, dropping below half-time enrollment, or exiting a deferment or forbearance. A change in enrollment or loan status can therefore move a borrower into repayment even if payments had previously been paused.

Borrowers approaching one of those changes should monitor their repayment status and account information. The autopay provision can lower the interest rate for eligible borrowers, but it does not prevent repayment from starting when a borrower leaves school, falls below half-time enrollment, or exits a deferment or forbearance.

Missed-payment timelines remain in place

Federal student loans generally become delinquent after a missed payment. A delinquent loan may be reported to credit bureaus after 90 days.

A federal student loan generally enters default after 270 days of delinquency. Those timelines make it important for borrowers who cannot make a scheduled payment to address the account before missed payments continue.

The autopay interest-rate reduction does not change those delinquency and default milestones. It is an interest-rate provision within the repayment changes, rather than a modification of the consequences for missed payments.

Part of a broader repayment overhaul

The Department of Education finalized a broader repayment rule on April 30, 2026. Most provisions of that rule took effect July 1, 2026, the same date the autopay interest-rate reduction began.

The department’s final rule describes new repayment structures, including a Tiered Standard plan and a Repayment Assistance Plan. The autopay reduction is being implemented alongside those broader changes.

For borrowers, the immediate date to track is Sept. 30, 2026. Enrollment by that date, or enrollment already in place, is required for the 1% reduction. The scheduled end date for the benefit is June 30, 2028.

Borrowers who want the reduction must enroll in autopay by 11:59 p.m. Eastern time on Sept. 30, 2026. Borrowers already enrolled in automatic payments can qualify if they meet the program’s eligibility requirements.

The reduction is currently scheduled to remain available through June 30, 2028. It is not permanent loan forgiveness, and it does not mean every federal student-loan borrower automatically qualifies. Eligibility depends on the borrower’s loan and autopay status.

How the temporary benefit works

The change reduces the interest rate applied to an eligible federal student loan by 1 percentage point while the borrower receives the benefit. Because the provision is tied to automatic payments, borrowers who are considering enrollment will need to complete the process with their loan servicer before the September deadline.

Federal Student Aid is administering the policy through participating loan servicers. The benefit applies nationwide to eligible federal student-loan borrowers, rather than being limited to a particular state or local program.

The new provision is part of the repayment framework created by the Working Families Tax Cuts Act. The Department of Education says that framework also includes two repayment options: the Repayment Assistance Plan and the Tiered Standard Plan. Both plans are scheduled to become available July 1, 2026.

Borrowers are also being moved away from SAVE

The autopay change arrives during a broader shift in federal student-loan repayment. The Education Department has begun directing approximately 7.5 million borrowers enrolled in the SAVE Plan to leave that plan and select another legal repayment option after court action ended SAVE.

Borrowers affected by the transition will need to choose a repayment plan among the options available to them. The Department has identified the Repayment Assistance Plan and Tiered Standard Plan as new choices under the law, with both scheduled to open July 1, 2026.

That transition makes the timing of the autopay deadline important. Borrowers may be dealing with a new repayment plan and an autopay enrollment decision at the same time. A borrower’s eligibility for the interest-rate reduction should be confirmed with the loan servicer rather than assumed from prior enrollment in SAVE or another plan.

What happens when payments resume

Federal Student Aid says borrowers leaving school or exiting deferment or forbearance will receive billing notices at least 21 days before a payment is due. Those notices are intended to provide the payment amount and due date as borrowers return to repayment.

Borrowers who do not make required payments can face delinquency and, eventually, default. The Department’s payment guidance urges borrowers to review their account information, confirm their repayment plan and keep contact information current with their servicer.

The 1% reduction can lower the interest rate for an eligible borrower, but the policy is temporary. Borrowers who enroll by Sept. 30, 2026, should expect the scheduled benefit to end June 30, 2028, unless the policy changes before then.

The immediate dates to watch are July 1, 2026, when the new repayment plans and higher autopay reduction become available, and Sept. 30, 2026, at 11:59 p.m. Eastern, when enrollment for the temporary reduction closes.

What changed with DallasGo

DWU says the upgraded system is fully integrated with DallasGo and that all DWU customers must create a new DallasGo login to access the updated payment platform.

Support through June 30, 2026 (and what the city says about late fees/disconnections)

DWU is extending customer service hours to help residents with DallasGo registration and other water-account questions. The DallasGo guidance states DWU Customer Service will be available 8 a.m. to 7 p.m., Monday–Friday, through June 30, 2026.

The city also says: there are currently no late payment fees or water service disconnections during the transition period.

If you can’t access your account: how to register

The city says you’ll need:

• A valid email address
• Your old or new account number
• Plus one of these to confirm you’re associated with the account: an activation code, or the driver’s license/ID (or business tax ID) number the city has on file, or the Social Security number the city has on file (if any)

For the activation code, DWU says it was included with your account number on your welcome letter or on a bill mailed after May 18, 2026.

If you’re stuck, the city says you can email DallasGo@dallas.gov with your name, service address, and phone number, or call 214-651-1441 (DWU customer service hours are listed above during the extended period).

AutoPay after the upgrade: you may need to re-enroll

DWU says customers previously enrolled in AutoPay must re-enroll to keep making automatic payments through the upgraded system. The city also says previous AutoPay settings and saved payment methods did not transfer to the new platform.

The DallasGo guidance says you can enroll in AutoPay from the account’s Preferences section, and it highlights a FREE AutoPay option using eCheck (with your bank’s routing and account numbers).

Fees you should expect: when the 3.15% convenience fee can apply

To address payment processing costs, the city says a 3.15% convenience fee is charged and paid directly to the third-party payment processor for certain one-time payments.

Per the DallasGo guidance, the fee applies to one-time payments made through:

• DallasGo
• the automated phone system
• or by debit or credit card

The guidance also says free payment options remain available, including AutoPay with eCheck, mail payments, and in-person payments at Dallas City Hall.

If something still isn’t working

• Call 214-651-1441 for help (the city lists extended customer-service availability 8 a.m. to 7 p.m. Monday–Friday through June 30, 2026).
• Email DallasGo@dallas.gov with your name, service address, and phone number.

The city memo also lists DWU customer service representatives as available 8 a.m. to 5 p.m. Monday–Friday.

Sources

• City of Dallas (Dallas Water Utilities) — DallasGo “The New Way to Pay” guidance page
• City Manager memo (City of Dallas) — DallasGo Payment Platform Upgrade and Customer Transition Update (May 15, 2026)