Student-loan borrowers have 1 month to enroll in a temporary repayment benefit

Student-loan borrowers who enroll in autopay can receive an interest-rate reduction.

Brendan SMIALOWSKI / AFP via Getty Images Student-loan borrowers can enroll in autopay by September 30 to receive an interest rate reduction.

The benefit is available for 2 years, and borrowers who default are ineligible.

It comes as borrowers are navigating higher bills from Trump's repayment overhaul.

The deadline for student-loan borrowers to receive a lower interest rate is fast approaching.

Borrowers who enroll in autopay by the end of the day on September 30 will receive a temporary 1-percentage-point reduction on their student-loan interest payments, starting immediately.

The benefit, which took effect July 1 for borrowers already enrolled in autopay, will last through June 30, 2028.

A borrower would see moderate savings over the two-year period: A graduate program borrower with $50,000 in student debt and a 7.94% interest rate could save nearly $23 a month.

Autopay allows student-loan servicers to automatically deduct a borrower's monthly payment from their bank account.

Borrowers currently enrolled in autopay already receive a quarter-percentage-point reduction in their interest rate.

With the temporary benefit, their servicer will reduce their rate by an additional three-quarters of a percentage point.

Those already-enrolled borrowers do not need to take any further action to receive the benefit.

Borrowers in default are not eligible for the benefit until they return to good standing, and if a borrower moves to a deferment or forbearance, the interest rate reduction will end.

The reduction applies to direct federal loans disbursed on or after July 1, 2012.