Solid Credit
Your lender reports on your student loan account to a national credit bureau on every month. If
you allow your account to go past due, it could cause a creditor to deny your credit application.
Lower Finance Charges
When you remain past due, you stretch out your repayment schedule. Because
Federal Family Education Loan Program (FFELP) lenders charge
interest on a daily accrual method, this increases your overall cost of borrowing. When you make payments every 30 days, as
opposed to every 40 days, less of your payment goes to interest, more goes to principal, and your loan gets paid off sooner.
Avoid Collection Efforts
When you stay current on your loan, we don’t have to bug you. Neither does your lender, your
school, or anyone else who is interested in seeing you get current.
Lender Benefits
Most lenders now offer interest rate discounts to borrowers who make their payments consistently
on-time. These may include discounts for arranging to make payments through automatic deductions from your checking account.
It’s The Right Thing To Do
If you’re like most borrowers, your student loan is the first loan you made. Your dependable
repayment of the loan allows your lender and your guarantor to make loans to other deserving students. Besides, regular
repayment of your loan will help you feel good about the way you manage your credit!
