"We expect this temporary incentive to drive up repayment rates and significantly improve the overall health of the federal student loan portfolio." When enrolled in the optional feature, student loan borrowers' payments are automatically deducted from their checking or savings account every month. Currently, only about 40% of student loan borrowers are registered for automatic repayments. People who are already enrolled in automatic student loan payments, as well as borrowers who sign up before the September deadline, are eligible for the discount. People who enroll in automatic loan payments could face overdraft fees if they exceed their account balance.