Student Loan Consolidation Cash Back: Borrowers’ Rewards and Benefits

Do lending companies give out rewards and benefits when you consolidate your loan and maintained good credit performance?

Yes! In fact, this is how lending companies compete against each other to get your business. As a whole, all lenders that give out government student loan consolidation should follow the standard set by the US Department of Education. Conditions in regard to interest rates and fees cannot be more or less than what the government has set. By giving out different borrowers’ rewards based on the company’s terms, students can choose which lending company they can benefit more.

Student loan consolidation cash back can be in the form of interest rate rebates or cash rebates. Most companies give out.25% interest rate discount once the borrower enroll himself to the automatic debit payment from his savings or checking account.

Another 1% interest rate discount is given when a borrower has been maintaining regular payments for the past 36 months. However, it is vital for the borrower to ask the lender if the interest rate discount will be locked in after a certain period of time and will not be taken back in case there might be a late payment in the near future. Any decent lender gives a 10-day grace period before a payment is considered late. There are also instances when a lending company is sold or acquired by another, you need to clarify if the rebates earned will be continued by the new acquiring company or not. So many things can happen within the whole duration of your loan so it would not hurt if you ask about these things.

Another important thing to consider is the lending company that offers cash rebates that can attract prospective borrowers. This is computed based on the principal loan balance that you can either ask the company to deduct from your principal or send it to you in the form of cash. You will be given this reward once you are able to maintain timely payments and good standing for at least 36 months. If you choose to take on this student loan consolidation cash back, be sure you read the fine prints of the lending company in regards on how to qualify. Some companies would require the borrower to fill up a rebate on or before the deadline that has been set. The moment you fail to send in the form, you will be disqualified.

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