Can I reduce my interest rate if I pay by Electronic Debiting?

Yes. As an incentive to use the Electronic Debiting Account (EDA) repayment method, the Direct Loan Program offers a quarter point (.25%) reduction in your interest rate for repayment periods. Your interest rate reduction occurs automatically once your account is placed on EDA. This discount will not apply during an in-School status, grace, deferment, or forbearance period. The U.S. Department of Education may discontinue this discount at anytime without notice.