Lower Interest Rate
Dear Betsy,
I just went through my exit interview for my loans at school and the woman there said something about getting a lower interest rate for paying my loans on time. Is this true?
Sincerely,
Cassie
Dear Cassie,
Some student loan lenders and servicers do offer an incentive for paying your student loans on time. The program I’ve seen most frequently states that if you make your 1st 24 or 48 payments on time, the interest rate on your loan will be reduced anywhere from 1 – 2% for the rest of the life of loan.
Other options I’ve seen reduce your interest rate up to ¼% just for allowing them to deduct your payments directly from your bank account every month. Give your loan holder a call or look up their website to see if they offer these programs and if so, how you would apply for them.
Good luck!
Betsy
