Auto Debit is a payment method offered by MOHELA, a student loan servicer, that allows borrowers to have their monthly payments automatically debited from their bank account. By enrolling in Auto Debit, borrowers can save time and ensure that their payments are made on time each month. Additionally, borrowers who enroll in Auto Debit may qualify for a 0.25% interest rate reduction on their eligible loans.

To enroll in Auto Debit, borrowers can log in to their MOHELA account and complete the enrollment steps. Once enrolled, MOHELA will automatically withdraw the borrowers regular amount due each month plus any additional recurring amount requested. Borrowers can modify their Auto Debit enrollment at any time by logging in to their account and completing the necessary steps.

It is important to note that the Auto Debit rate reduction is not included in the payment amount calculation, and borrowers should keep in mind that this reduction remains in effect only while they are actively participating in the Auto Debit program. If a borrowers loan is in deferment or forbearance, Auto Debit will not be in effect, and the borrower will not receive the 0.25% interest rate reduction during these periods. Additionally, if three consecutive payments are returned due to insufficient funds, Auto Debit will be removed, and the borrower will lose the 0.25% interest rate reduction.

Overall, Auto Debit is a convenient and potentially cost-saving payment method for borrowers with eligible loans serviced by MOHELA.