Q: Why should I enroll in Autopay?
For loans originated starting in 2020, students have the option to enroll in Autopay with our payment processor, Launch Servicing. There are numerous benefits for enabling Autopay:
- Save on interest. You will receive a .25% reduction in the interest rate on your loan as long as you remain signed up for Autopay.
- Avoid late fees. With Autopay, your monthly loan payments are automatic, so you never have to worry about missing a payment and incurring late fees.
- Protect your credit. By ensuring on-time payments, Autopay protects your credit from missed payments.
And remember, there are no restrictions on pre-payment, so in addition to your automatic payments, you can also pay down your loan early which will reduce the total amount of interest you will pay over the life of the loan.
Interest rate reduction of 0.25% applies only when the borrower and/or cosigner sign up for automatic payments and the payment amount is successfully deducted from the designated bank account each month. Interest rate reduction(s) will not apply during periods when no payment is due, including periods of in-school, deferment, grace or forbearance, unless a regular payment amount has been arranged with the servicer. If you have two (2) consecutive returned payments for Nonsufficient Funds, we may cancel your automatic debit enrollment and you will lose the interest rate reduction. You will then need to re-qualify and re-enroll in automatic debit payments to receive the interest rate reduction. (See Automatic Payment Discount Terms & Conditions.)