Graduate Loan Incentives

Loan Incentives

Incentives are sometimes offered to students who repay their loans on time. For information on repayment incentives and their availability contact the Direct Loan Servicing Center for Direct Loans. If you have a FFEL, you must contact your lender for particular information about the types of incentive plans in place. The most common plans are:

1. On time Payments - If you pay your first 48 loan payments (for actual number of payments please see your lender) on time then they will lower your interest rate. This could be as much as 2% or 3%.
2. Automatic Repayment - many lenders will offer a interest rate reduction if you set up automatic payments to your account each month via EFT.
3. Rebate - Certain lenders will refund the origination fees if student pay the first 24 months of their loan on-time
4. Some lenders may offer a zero guarantee fee for all Federal Family Education Loan Program (FFELP) loans. As for your savings, on a $10,000 loan - you will save $100 at disbursement and much more over the life of the loan! Federal law allows guarantors to collect up to 1 percent from each education loan they guarantee. Guarantors place those fees in a federally owned reserve account and may use those funds if a borrower defaults on a loan. Guarantors also may use those fees to pay for their default-prevention efforts.

Check with your lender to find out specific incentives they offer. If you are not sure who your lender is, then please click here. Also, please visit Edvisors.com Financial Aid Listings for more information.