Take Advantage of Consolidation Incentives
Are there Any Discounts Left to Find?
In the past student loan providers competed vigorously to attract borrowers to consolidation loans, often with promises of cash back bonuses and deep interest discounts. But drastic changes in the student loan lending industry have since driven such practices away. It’s no longer a cheap deal to woo customers to consolidation and many lenders have now, in fact, suspended their consolidation lending services.
Which means shopping for a consolidation loan becomes even more strategic and lenders that do offer consolidation may have borrower benefits bundled into other products and services. So know how to shop.
Shopping for Incentives and Perks
Competition among the big student loan providers is here to stay, but without the loud fanfare. Private student loans are no longer a rarity. In fact, student loans across the board are big business. So big that many lenders have landed themselves in serious hot water with legislators eager to rein in the sprawling student loan business. Cash perks and incentives previously offered in abundance have grown surprisingly rare.
Regardless of the legal fall-out in the student loan sector, the fact remains that most college graduates have a difficult 10 to 20 years ahead of them, and that’s if they do not choose to consolidate. Student loan consolidation programs extend repayment terms up to 30 years in some cases. Three decades may earn a lender a nice purse in interest and other payments, so of course your business matters.
“Show Me the Money”
Lenders occasionally run limited cash giveaways for borrowers, but these are not nearly as plentiful as they once were. The student loan lending business has undergone a severe renovation and many such perks were cut across the board. By far the more common bonus programs are those that feature reduced interest rates for on-time and electronic payments. Example of a cold, hard cash program that <i>could</i> benefit you:
- Student loan borrowers with Sallie Mae are eligible to sign up for the Great Sallie Mae Giveaway, a monthly cash prize of up to a whopping $25,000 that will go toward the pay-off of your SLM loans, including a consolidation loan.
Shop lenders carefully for incentives. Next to the occasional cash rebate offer, you should look for valuable interest rate deductions for on-time payments and for authorized electronic debit payments. But there are other valuable incentives and lender features that may not come first to mind.
Lenders Find Ways to Buy Your Business with Non-Cash Perks and Benefits
Non-cash perks have become trendy. For example, Sallie Mae features a quick, online application process that they may even be able to complete themselves. Who wouldn’t want to have someone else do the difficult paperwork?
