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posted: Oct. 14, 2011 @ 12:07p
After you make your payments on time for 12 months, you are entitled to a 0.25% discount in the rate, I think. At least this was the case with mine in 2002.
posted: Oct. 14, 2011 @ 12:30p
its the upfront interest rebate that you got on the condition you made the first 12 payments on time. Basically the loan origination fee was lower than normal. You borrow $1000 with a 1% loan fee. You get $990. But because you promise to pay the first 12 months on time (and did), you actually got $995 (.5% loan fee).
The .25% discount is for having it auto pay from checking. (at least on mine)
posted: Oct. 14, 2011 @ 12:59p
I don't think it's the same thing as the upfront interest rebate because my loan is a Direct Consolidation Loan. As I understand it, the upfront interest rebate is only available to Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans. Per my Master Promissory Note:
Another repayment incentive program, the up-front interest rebate, is available on Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans. The rebate is equal to a percentage of the loan amount, and is the same amount that would result if the interest rate on the loan were lowered by a specific percentage. To permanently keep an up-front interest rebate, a borrower must make each of the first 12 required monthly payments on time when the loan enters repayment. If you consolidate a Direct Loan on which you received an upfront interest rebate before you permanently earn the rebate (the correspondence you received about your loan will tell you if you received a rebate), you will have to make the first 12 required monthly payments on your Direct Consolidation Loan on time to keep the interest rebate. You will lose the rebate if you do not make all of your first 12 required monthly payments on time. If you lose the rebate, we will add the rebate amount back to the principal balance on your loan account. This will increase the amount that you must repay.
posted: Oct. 14, 2011 @ 1:10p
If its not that i don't know and a quick search for it isn't turning it up, i have the same benefit listed in mine, and its not listed on any of the previous 5 loans that i had pre-consolidation.
posted: Jan. 2, 2012 @ 5:30p
never find anything out? I didnt
posted: Jan. 2, 2012 @ 7:52p
Maybe the OP would have better luck calling now. In the fall when they were launching the myedaccount.com web site they were having serious issues with the web site and posting payments to accounts. My last Transunion credit report (~1 month ago) showed I owed a zero balance on my federal direct loan. It apparently did the same thing to a lot of other people so they were overwhelmed with calls - especially people that were paying on accounts were getting late payment warnings. Unfortunately, now I can see that my $24k balance has not disappeared - but I wasn't really expecting the mix up to last forever. Darn. I was appreciating that temp boost to my FICO score. Try again?
posted: Jan. 5, 2012 @ 4:53p
I called them about two weeks ago - the CSR I spoke with indicated that this was indeed for the up-front interest rebate, but that she was unable to see whether or not it was actually applied.
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