Save Money – Student Loans

Student loans.  They are so nice to have around.  NOT!

I remember inviting this gal named Sallie Mae over to my house and she did not leave for 8.5 years!

After 8.5 years, I decided that it was time to break up with Sallie Mae.  She was not really pleased about it.

Anyway, about four years into the pay-off, I received a letter in the mail that said …

"Congratulations.  Because you have made 48 consecutive on-time payments, your interest rate has been reduced by 2%!"

That was awesome!

If you have student loans, did you know that YOU could receive the same interest rate deduction?

In fact, I checked out several of the larger Student Loan companies to find out their current policies.  Here is what I found.

  • Sallie Mae – If you make your first 33 monthly payments on time, you will receive a check for 3.3% of the amount borrowed!  If you opt to have the 3.3% credit applied to your loan amount (I would), it will save about 5.35% of the amount borrowed due to interest savings!  Click HERE for Sallie Mae's Cash Back details.
  • SC Student Loan – Through their Quarterback Program, borrowers can automatically receive a 0.25% interest rate reduction for allowing monthly drafts for your payments.  Through their Best Interest Program, after making 36 consecutive on time payments, borrowers will receive a 2% interest rate reduction.  If you make all of your payments on time, then the last portion of your loan will be forgiven – up to $750!  Read all about SC SLC's benefits HERE.
  • Wachovia Student Loan – They will provide a 1% rebate when loan repayment begins.  Another 1% rebate after 12 months of consecutive on time payments.  Another 1.5% rebate after making 24 on time payments!  You can read about that HERE.

The common thread through all of this is ON TIME PAYMENTS!!!

Have fun saving money!  By the way, I love the automatic draft feature.  I use automated drafts for all of my investments.  It really helps me stay on the wagon (it is one of my wagon staplers!).

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  1. Tina Harkey on April 9, 2008 at 6:45 am

    Thanks Joe, I wasn’t aware of this. Now that my husband writes the checks all of our bills are paid on time (I was just lazy and didn’t make it happen). So we should get the Wachovia rebate soon, they bought out my Sallie Mae Loan. And my interest rate is only 2.25% anyways (which I know any interest rate isn’t good) but that rebate will be an awesome treat to put towards the whole amount!

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  3. John X on April 9, 2008 at 1:27 pm

    Just a note on these reductions: With most of these companies, if you are late on ANY payments during those first 33-48mo’s(whatever the qualifying time is) you will lose the rate reduction benefit.

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