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 (subject to conditions).
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. It’s free to apply!
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. Other conditions apply.
The 0.25% interest rate reduction from Auto Debit will be removed during times of deferment or forbearance. Auto Debit will resume at the end of your
deferment or forbearance.
Please keep in mind, if you make unscheduled, 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.