Obtaining A Rebate On A Consolidated Student Loan
A rebate to consolidate student loans is a term used to describe the process by which
a current lender agrees to consolidate a student loan for a current borrower. Individuals who are interested in finding the lowest interest rate and best terms for their loans often seek out new lenders. The hope is to find a more affordable repayment solution. However, the current lender may be willing to extend a rebate or discount offer to a good borrower to keep the business with them.
Rather than allowing an individual to take their business elsewhere, the current lender offers a discount to their borrower that entices the borrower to stay with the company. This often occurs only after an individual has taken the time to obtain quotes from other lenders and then approaches their current lender requesting a rebate on the consolidation student loan. In fact, each individual should use this process before they agree to switch from one lender to the next. Find out what your current lender is willing to offer to you.
A rebate and discount they may be willing to offer is to reduce the interest rate that you are currently paying on all your existing loans. They may offer to waive the last six months of installment payment if you make all your previous payments on time. Or maybe write in an automatic reduction of principle after a predetermined amount of time. They might offer to increase the number of months you have to repay to give you a lower monthly payment.
The time and effort it takes to get the most benefit from having your student loans consolidated is definitely worth it in the long run. From searching out the best lender offering you the lowest interest rate and the longest terms to understanding the pros and cons of all of your offers, goes along way when it is time to negotiate. After you have gathered all this information it is wise to consider asking your current lender to offer you a rebate plus better terms than his competition has.
Wonder why your lender might be willing to do this? There are literally thousands of private lenders all trying to get there share of the lending market. They all need business and spend lots of money trying to lure new customers. And as difficult as that it is, it can be quite easy to simply offer you a discount or rebate to get you to stay. It isn't so much that they want to help you as it is they need to make money to stay in business. So even by offering you some kind of rebate they won't offer to someone else, they still will make a large profit from your consolidation loan.
How can you get this rebate? Contact several lenders and request a free, no obligation quote for a student loan consolidation. Then, approach your current lender with the offers presented to you by other companies. Request that the lender offer a rebate to you and to consolidate student loans for you. Many will agree to this just from this information.
How you will know if it is a good deal or not is to compare the long term and short term benefits of each quote. You will know right away if the rebate or discount they offered is actually a good deal providing you with the best savings over other lenders. If you are looking for lower monthly payments, getting an offer to eliminate the last six months payments might not get you what you want from you consolidation.
In many cases, a rebate to consolidate student loans can be effective. It can save you money. Do consider this option as well as others.
by: James Charles.
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