Auto Pay Interest Rate Reduction

If you apply to have automatic payments electronically debited from your bank account, and if MOHELA approves your request, you may qualify for a 0.25% interest rate reduction. Please review your loan agreement to determine eligibility.

Important Information about Auto Pay:

• For eligible loans, your effective interest rate is reduced by 0.25% when participating in Auto Pay. So you will accrue less daily interest and reduce the amount you owe on your loan over time. The Auto Pay rate reduction is not included in the payment amount calculation.

• Keep in mind this reduction only remains in effect while you are actively participating in the Auto Pay program.

• Three consecutive payments returned due to insufficient funds will result in the removal of Auto Pay and the loss of the 0.25% interest rate reduction.

• Any interest rate reduction from Auto Pay will be removed during a period in which you do not use Auto Pay. Automatic Payments will resume at the end of your deferment, forbearance or grace period.

• If you make additional payments, your Auto Pay will continue to withdraw your regular amount due each month, plus any additional amount you have requested.