Student Loan Gotchas
A gotcha is what some lenders use to disqualify you from earning your full student loan discounts. To put it bluntly: they're hoping you don't read the fine print when you sign up.
Unfortunately, some student loan lenders use misleading marketing tactics to entice you with their “not-so-easy-to-keep” loan discounts. We’ve researched their fine print, and want to share some common gotchas that you should look for when shopping for an education loan.
“Get a discount if you make payments on-time.”
Gotcha, you must make your on-time payments over the life of the loan (this could be up to 10 years). Instead, look for discounts that become permanent once you fully earn them.
“Sign up for automatic payments and get a discount!”
Gotcha, You must sign-up for auto-payments after signing your application. However, the lender may “conveniently” not send that auto-pay form, so be sure to ask for it. No Auto-Pay Form + No Auto-Pay Sign-Up = No Loan Discounts.
“Your payments are due as initially scheduled.”
Gotcha, this means you may have no grace days. If you’re even 1 day late with your payment, you may lose your discounts.
“Earn extra months of grace (no payments) after you graduate.”
Gotcha, you must provide proper graduation documentation within the lender's deadline; otherwise, you will not qualify for the additional grace months.
“There are no penalties if you pay off your Federal education loans earlier than scheduled.”
Gotcha, although it is true that borrowers cannot be charged a fee for pre-payment, a lender may take away your discount savings if you pay off your loan earlier than scheduled.
“Get the best deal with “our” borrower discounts!”
Gotcha, As long as all of your loans are serviced through that one lender, then you’ll receive those loan discounts. However, if that lender ever sells your loans, then your discounts may not be permanent. Be sure to check the loan terms!
“Earn a discount by choosing to receive your bill via email.”
Gotcha, if you forget to reply to the e-bill every time you receive it, or if your email bounces back, then kiss your discount(s) goodbye!
“If you are having problems making payments, you can apply for forbearance or deferment.”
Gotcha, by qualifying for forbearance or deferment, you may be disqualified from earning your loan discounts.
Student Lending Works - No Gotchas!
Our nonprofit mission is to lower the cost of education for students and their families. At Student Lending Works, we don’t have any “gotchas”. Once you fully qualify for our loan discounts, they become permanent.
Contact us and we can help you determine the best student loan option that meets your needs. |