Rewarded For Paying on Time

**McD** · 04-17-2010, 10:32 AM

I recently started paying on some of my student loans through Wells Fargo that were in a temporary forbearance. There was a minor snafu--they applied my payments incorrectly, but were very quick to correct it.

I got a letter from them yesterday, and I seriously thought, "NOW WHAT! I JUST SENT YOU ANOTHER $400 DOLLARS!!!"

However, it was a letter stating that since I paid my first payment on time, they were reducing my interest rates on all my loans by a quarter of a percent.

How awesome is that? I've honestly never been rewarded like this for paying on time!

**frugalfriend** · 04-17-2010, 10:35 AM

That is very cool!

**savvy_sniper** · 04-17-2010, 11:14 AM

That is great! Take whatever you can get.

**ncarr** · 04-17-2010, 11:33 AM

yea!

That's really great!

**Dancing Lotus** · 04-17-2010, 11:47 AM

That's the first time I have ever heard of such a thing. I think that says a lot about how many people aren't paying on time.

**JoJoBean8** · 04-17-2010, 01:59 PM

I have my student loans through AES and after so many on time payments, I believe it was 36, they dropped the interest by 1%. Also they sent me out a letter that if I set up monthly payments they will drop it another .25%. I did the math and it would cost more to actually do the automated payments because it's once a month as of now we pay weekly.

**MrsOptimistic** · 04-17-2010, 02:21 PM

Awesome!

**Luckybustert** · 04-17-2010, 02:26 PM

That's awesome! I'm at the opposite end of the spectrum this week...I consolidated my student loans about 6 months ago, and I was so incredibly happy to be rid of Sallie Mae. (I would pay them online, in the amount they said was due, and they would consistently claim I was still delinquent - WTH?) Anyway, couple days ago I get a call from a collector who wants "to see what he can do to help me bring my delinquent Sallie Mae account current?" EXCUSE ME? So I proceed to inform him that I consolidated my loans several months ago and that I don't owe Sallie Mae a darned thing (grrrrr....I even confirmed online when the loan was consolidated that my balance with them was zeroed out). So he puts me on hold while he confirms what I said was true, and he apologizes, says he's putting in a request to update the status of my account, etc. etc. But MEANWHILE, Sallie Mae reports delinquencies to credit agencies so this supposed 180 day delinquency is not only on my credit report right now, but I'm going to have to go to the trouble of making sure they take it off. I don't trust them to take it off based on the guy's request to update the status alone, and I really don't feel all that confident that it won't reappear somewhere down the line. As an accountant, I'm totally mystified by their accounting practices. How can you continually show someone delinquent, even after they've paid the amount you say is due? How can you show someone's account as having been paid off one day and six months later start hounding them that that account is 180 days delinquent? Just reeks of incompetence (or perhaps fraud?) on their part. I certainly think their practices merit investigation.

**Darlene** · 04-17-2010, 05:20 PM

Good for you Nichole!
Luckybustert, what you mention makes me think about how important it is to document everything & hang on to the paperwork forever so someone can't come back and say you owe.

**militlady** · 04-18-2010, 12:48 AM

Good for you! Every little bit helps.

**Greebo** · 04-18-2010, 07:41 AM

Well - they can claim that they're not punishing people for NOT paying on time, I guess...

**nodmicks** · 04-18-2010, 09:33 AM

Excellent news!!!!

**McD** · 04-18-2010, 02:35 PM

Originally Posted by JoJoBean8

I have my student loans through AES and after so many on time payments, I believe it was 36, they dropped the interest by 1%. Also they sent me out a letter that if I set up monthly payments they will drop it another .25%. I did the math and it would cost more to actually do the automated payments because it's once a month as of now we pay weekly.

JoJoBean, they would do it for us as well (as would the FedLoanServicing ppl that service my fed loan) but I refuse to give them access to my checking account. Have seen and heard way too many horror stories that way.