Auto Debit Interest Rate Reduction
Applying and being approved by MOHELA to have automatic payments electronically debited from your bank account may qualify you for a 0.25%
interest rate reduction. Not all lenders offer the 0.25% interest rate reduction.
Save yourself time and ensure your payments will be made on-time each month by setting up automatic payments. There is no need to rush to the
mailbox each month or worry about logging in to make a manual web payment. Save on postage and interest paid over the life of your loan while
using Auto Debit. It’s free to sign up!
Keep in mind this reduction remains in effect while you are actively participating in the Auto Debit program. For example, three consecutive
payments returned due to insufficient funds will result in the removal of Auto Debit and the loss of the 0.25% interest rate
reduction for federally-owned loans.
The 0.25% interest rate reduction from Auto Debit will be removed during a deferment or forbearance. Auto Debit will resume at the end of your
deferment or forbearance.
Please keep in mind, if you make additional payments, your Auto Debit will continue to withdraw your regular amount due each month plus any
additional amount you have requested.
Apply for Auto Debit through your online account.