Hi All,
I recently (yesterday) paid off my student loans in full roughly 3 months after my graduating date from undergrad. my loans totaled just over $22,000. I was undecided on whether I wanted to do it or not for quite some time, but finally decided it would be best to get rid of that debt if I was able to.
My question is about an up-front rebate that some of my loans carried. The up-front rebate ended I believe on June 30, 2012, but all of my loans were disbursed prior to that date. Some of them had a 1.5% rebate, and others has a .5% rebate.
The up-front rebate is a discount or reduction of the origination fee % when the loan is disbursed to the school. So instead of paying a 1% orig fee, it is only .5% (reduced by .5% due to the up-front rebate). So if a loan for $1,000 is disbursed, the school will receive $995 rather than $990 without the rebate.
This rebate remains as long as the student makes 12 on time payments once repayment begins. The rebate is given to encourage students to not default on their loans. Well... I did not default, in fact I did the complete opposite and paid them in full. However, I am now being billed the amounts from the rebates on all of my loans. It is just over $100, which is not much, but I still don't feel it is right. I've looked everywhere and have called the DOE and my servicer many times and no one has any info for me. I've just been told to access a MPN but the current MPN will not have anything about the rebate since it is no longer existing.
Does anyone have any idea where I can look? I'm just upset that the purpose of the rebate is to encourage students to stay out of default, and that I am being penalized/charged for doing just that. I understand they need to make their money and 12 on time payment would have netted them a lot more interested than they would from my paying in full.. but would like to see it somehwere in writing if possible.
Thanks guys
