Hopefully you did your homework when you decided to consolidate student loan debt. Although interest rates may not vary much among lenders you consider to consolidate student loan debt, keep in mind that even a small difference can save you considerably on the life of your loan. This is because when you consolidate, you extend your repayment period. You will be paying interest for a longer time, so even half a point can make a big difference.
By shopping around, you probably took advantage of discounts offered for consecutive on-time payments, or perhaps for automatic payments – or both. If you don’t want to lose that discount, you have to keep your payments arriving on time.
Some lenders allow you a grace period for late payments, but others do not. If you are late even once in the 15 or 20 years it may take you to repay your consolidated student loan, the discount you signed up for when you chose to consolidate student loan debt could disappear.
As lenders have come under more and more financial pressure, they have gotten stricter about late payment grace periods. It’s up to you to manage your repayment to ensure you don’t lose the valuable discount you bargained for when you choose to consolidate student loan debt with a particular lender. To keep saving long-term, always be sure you send your payment out on time. Be very careful when switching bank accounts to be sure to notify your lender well in advance of your next automatic payment.