A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotionmarketers use primarily as incentives or supplements to product sales.
Student loan consolidation rebates are usually given by a private company when student loans are consolidated equaling more than $20,000. The more student loans consolidation, the higher the student loan consolidation rebate.
All this rebate is offered on Stafford loans and plus loans. The most common discounts offered on student loan consolidation are:
1. 0.25% reduction in rate if your EMI gets debited from your account directly.
2. 1% waiver in default fee depending upon the guarantor for the loan.
3. Additional rebate on making timely payments.
4. 2% reduction in rate after completion of 48 months
If you decide to go with a company,that is offering cash rebate option, please read the fine print thoroughly. Many companies say to submit a rebate form by a deadline to give the cash back benefit. If they don't receive the cash back form by the date,they will allow the borrower to get that rebate.
The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments. By asking the right questions and knowing what to look for, you can maximize your savings and make sure that you get the best deal possible on your consolidation loan.
