Tips and Tricks for Lowering Student Loan Interest Rates

Most people understand the money saving impact of student loan interest rates when consolidating student loans after graduation. However, most borrowers don't realize that there are even more ways to reduce the interest paid on student loans through lender incentives.
In addition to shopping around for the lowest student loan interest rate, do some comparison shopping for incentive programs. Make comparisons of the following types of incentive options and see how ScholarPoint can save you thousands of dollars above and beyond the regular student loan consolidation savings.

On Time Payments and Interest Rate Reduction incentives reward borrowers with a lower student loan interest rate simply for making payments as scheduled. Many lenders offer student loan interest rate reductions of up to 1 percentage point after 36 months of consistent on-time payments. However, in a bold move to reward its best customers, ScholarPoint offers a 1 point interest rate reduction a full year earlier than the average lender.

Auto pay interest rate reduction incentives give borrowers a discount simply for electing to have payments deducted from their account automatically. Many companies offer student loan interest rate reductions of .25%. Again ScholarPoint has pushed the envelope, offering a .50% student loan interest rate reduction as an auto pay incentive.

Reducing your student loan interest rate by 1.5 percentage points with ScholarPoint's incentive reductions can make a huge impact on your overall repayment amount. On a $30,000 loan a 1.5% student loan interest rate savings can amount to a savings of roughly $2,700.

Competition in the student loan consolidation industry has greatly increased over the past several years. This equates to big savings for borrowers as lenders offer even more enticing student loans and student loan consolidation programs. ScholarPoint has spent years analyzing the student loan refinancing industry and developing one of the most comprehensive incentive programs in the industry.