Take Advantage of Borrower Benefits and Rewards

How To Pay Back Student Loans Faster

student paying back loansStudent lenders often offer incentives to make their loan products stand out from the crowd. The industry calls these borrower benefits but they may also be called borrower rewards or incentives. While they can often save you lots of money over the life of a loan, you should consider them carefully to see if they will really benefit you.

Examples of benefits:

These benefits are either automatic or they are earned:

But remember to shop around! Not all benefits are included with all loans. Know what you’re entitled to before you borrow, and calculate your savings ahead of time.

Eligibility for Borrower Rewards

To qualify for borrower rewards, you may have to meet criteria specified by the lender. Some examples of these requirements are:

Check with each lender to see how and if you qualify for borrower rewards offered.

Other Important Notes:

Student Loan Interest Deduction

When filing your income taxes with the federal government each year, be sure to check for qualifying educational deductions. If you took out a loan specifically to pay for college or other educational expenses, then you may have what is called a qualified student loan, which can entitle you to a student loan interest deduction of up to $2,500, or the amount of interest paid if less.
These deductions do not need to be itemized on the Form 1040 Schedule A since they are considered an adjustment
to your income. You may be eligible to claim this deduction if:

If during the year, you paid $600 or more in interest on a qualified student loan, whomever you paid the interest to will send you a 1090-E form detailing the amount paid.
To learn more about this and more possible educational deductions through the IRS, see Tax Benefits for Education, Publication 970, or the Form 1040 Instructions to determine your eligibility.

Potential Pitfalls

Here are some potential pitfalls: