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Lenders typically offer a variety of discounts or money-saving incentives, called borrower benefits, to their education loan borrowers. These benefits are designed as a reward for borrowers who exhibit good behavior during repayment with such things as making consistent on-time payments, making payments with automatic debit, or using tools that better manage monthly student loan payments.
Borrower benefits may come in the form of interest rate reductions, where a discount is taken off the interest rate of the total loan balance. They may also be offered as loan credits, where the borrower receives money off the total balance of the loan after a certain amount of monthly loan payments are received. In some cases, an origination fee may be waived — saving you more money upfront!
It is important that you check the specific borrower benefits offered by each lender. Your school may have additional borrower benefits; check with your financial aid office for more details.
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