The grand majority of current college students are well aware of how important consolidating student loans can be for them after they graduate from school.
Even though they know that consolidation will bring lower interest rates, not as many students know that there are ways to lower their current interest rates as well by means of lender incentives.
Comparing the interest rates and incentive programs that lending agencies offer is an important part of deciding which student loan you should go with.
You can actually save yourself thousands of dollars if you compare incentive programs.
You would probably more than you would with consolidation.
Lender Incentives Reduction of student loan rates can be lowered by means of on time payments with some lenders.
This particular incentive program will reduce a borrower's interest rate if they make their monthly payments on time.
One commonly available incentive is that your lender will bring your interest rate down one percent for every thirty-six months of on time payments.
Of course, each lending agency has their own incentive programs so you will need to speak with them directly to learn all the details of their programs.
An auto pay interest rate reduction is also frequently offered by lenders.
This incentive lowers an individual's interest rate if their monthly payments are made automatically from a bank account.
This common incentive program yields borrowers an interest rate reduction of about 0.
25%.
Save Even More by Consolidating Even if you have taken advantage of some great incentive programs with your student loans, you should still consider consolidating your loans to save even more.
Consolidation also makes the process of paying loans easier since you only have to write one check each month.
Besides that, your loan will typically be extended over a longer period of time and thus allow you to make smaller monthly payments.
This does not mean, however, that interest charges will make the total you pay larger.
Your total repayment amount can be greatly influenced by methods of reducing your student loan interest rates.
For instance, if you have a $30,000 student loan and you successfully lower your interest rate by just 1.
5% you will be saving yourself more than $2,000.
Incentive programs have also become attractive since more banks are now fighting for your business.
Even though they know that consolidation will bring lower interest rates, not as many students know that there are ways to lower their current interest rates as well by means of lender incentives.
Comparing the interest rates and incentive programs that lending agencies offer is an important part of deciding which student loan you should go with.
You can actually save yourself thousands of dollars if you compare incentive programs.
You would probably more than you would with consolidation.
Lender Incentives Reduction of student loan rates can be lowered by means of on time payments with some lenders.
This particular incentive program will reduce a borrower's interest rate if they make their monthly payments on time.
One commonly available incentive is that your lender will bring your interest rate down one percent for every thirty-six months of on time payments.
Of course, each lending agency has their own incentive programs so you will need to speak with them directly to learn all the details of their programs.
An auto pay interest rate reduction is also frequently offered by lenders.
This incentive lowers an individual's interest rate if their monthly payments are made automatically from a bank account.
This common incentive program yields borrowers an interest rate reduction of about 0.
25%.
Save Even More by Consolidating Even if you have taken advantage of some great incentive programs with your student loans, you should still consider consolidating your loans to save even more.
Consolidation also makes the process of paying loans easier since you only have to write one check each month.
Besides that, your loan will typically be extended over a longer period of time and thus allow you to make smaller monthly payments.
This does not mean, however, that interest charges will make the total you pay larger.
Your total repayment amount can be greatly influenced by methods of reducing your student loan interest rates.
For instance, if you have a $30,000 student loan and you successfully lower your interest rate by just 1.
5% you will be saving yourself more than $2,000.
Incentive programs have also become attractive since more banks are now fighting for your business.
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