Our Student Loan Interest Rate Went Down by 1%!
I just opened a letter from our student loan provider that’s been sitting in a pile all week. I thought it was the monthly bill for Stacie’s loan, but it turns out it was a notification. Here’s what it said:
WHY WE ARE CONTACTING YOU
Congratulations, you have qualified to receive a repayment incentive
WHAT THIS MEANS TO YOU
We have reduced the regulatory interest rate on the loan(s) listed on the reverse side of this letter.
Federal regulations require us to inform you that if your loan(s) defaults or is consolidated, the interest rate will revert to the statutory rate in accordance with your promissory note.
The reverse side indicated a full 1% rate reduction for Stacie’s loan. The loan has a remaining balanced of a little over $11,000, originally around $20,000.
Now I was skeptical about this letter because until I consolidated her loans, I would get tons of spam mail from loan consolidation places. They all said that she would get amazing rates and I thought maybe our provider was trying to trick us. So, I logged into her account, but the site was down for maintenance. Then I called their help line. I punched in through the automated line to listen to the loan details.
Sure enough, the loan has come down from 5.75% to 4.75%.
Now, I’m not sure if this is the same rate reduction we were expecting for making 36 on-time payments because my understanding is that was only supposed to be a half-percent reduction. I’ll assume it is, or else we’ll be getting another letter in a month or so (I thought we had another payment to go).
So we get more assistance from our lender for an unexpected reason. Just last month I found out my student loan was automatically deferred since last November, meaning the government was paying my interest for me.
Anyone else get this letter? If not, I guess I’ll assume it was the expected reduction (or at least until I can log in to the account).