If you’re preparing to consolidate student loan debt, you’re probably doing some research on potential lenders. Of course, you will want to choose a lender you feel secure borrowing from, and one that offers you favorable terms. One of the most important things to do is consider multiple offers from different lenders. That’s the only way you can make the very best choice when you’re ready to consolidate student loan debt.
What sort of incentives do lenders offer students preparing to consolidate student loan debt? Since interest rates are determined by the federal government, you may think you shouldn’t expect much in the way of a money-saving rate for consolidating your student loans. However, the fixed interest rate set by the government is a capped rate – meaning lenders can still offer you a lower fixed interest rate on your consolidation.
Lenders may also offer you additional incentives for choosing to consolidate student loan debt with their consolidation company. You may be granted a discount if you make on-time monthly payments consecutively. You could be awarded a discount for signing up for automatic payments from your bank account. In some cases, lenders offer students a discount just for opting to consolidate student loan debt while still in their grace period.
Look for these and other incentives when you are choosing a lender to consolidate student loan debt. Small savings add up over time, and a small discount can make a big difference in the amount you end up repaying over the life of your consolidation loan.