Student Loan Discounts

More Ways To Save On Student Loans

A low interest rate is not the only thing that goes into a good student loan. Student loan discounts can save you thousands when it comes time to repay the loan. And they are easy to find because student loan companies are all competing for your business.

All About Student Loan Discounts

There is a legal limit to the interest rate any student loan can carry, and no student loan can exceed this set interest rate.  But there is nothing on the books that says the interest rate cannot be lower. This has created innovative competition between student loan companies to lower rates to attract business.

Here are some of the most common ways lender discount loans.

  • The Direct Debit Discount is one of the most common types of loan discounts. If your monthly loan payments are taken directly out of your checking account, you get a discount on your interest rate. This discount is typically around 0.25%, which is significant over time.
  • The Waived Origination Fee Discount waives the fee that a lender charges to set up the loan.
  • The On-Time Payment Discount rewards you for making payments on-time each and every month. The Stafford Loan and PLUS Loan programs offer these discounts, which add up over time.

As Always, Read the Fine Print

In order to keep any discounts you might have available, it is important to know your loan contract thoroughly. For instance, if you decide to consolidate your loan with another company, you may have to pay back any rebates or principal reductions you may have received from your original lender.

You may not qualify for certain loan discounts if your loan balance is below a certain amount. Typically the most impressive discounts are for those individuals with very large amounts of debt, since the lender makes the most money from these customers.

Student loan discounts can be a great means of making your college education more affordable. Just be sure to always know what you are signing in order to get the most out of your discounts.