How to Repay Student Loans - Part 9

Speaker: What are student loan borrower benefits?

Justin Draeger: Borrower benefits are basically things that loan providers offer the students and prospective borrowers to entice them or convince them to use their loan products they're basically reduction to the cost of the loan. They can be on the front end of a loan, meaning that they’ll reduce the amount of origination fees that you owe when you take the loan out or they can be on the back end as in the case of a reduced interest rate or perhaps a rebate on a loan balance. Back-end benefits are generally contingent on your behavior so you have to make so many on time payments.

You'll want to closely examine the borrower benefits that are being offered to you by different loan providers and then examine whether or not you are likely based on your behavior if you're going to meet the requirements to obtain those borrower benefits. Some borrower benefits are quite strict, meaning that there is no leeway for you to miss a payment or be delinquent in any way. Other a little leeway and give you some discretion in making your payments.

You should close examine the terms and conditions of your loans and the way the likelihood of you being able to qualify for that to make a decision.


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