The Benefits Of Signing Up For Student Loan Auto-Pay

You should consider signing up for student loan auto-pay.When you sign up for auto-pay you are in effect giving the bank permission to withdraw money from your bank automatically to make your monthly student loan repayments.

Benefits to Student Loan Auto-Pay

Choosing auto-pay has several benefits. The first is the sheer convenience of knowing that your payments will be made for sure every month, on the date that you set it up for. This means you do not have the headache of setting a reminder. You don’t have to write out a check every month or pay the postage for mailing the check out. The money auto-debits from your account every month and deposits itself into the lender’s account electronically.

Signing up for auto-pay helps you save money, which is especially important if staying organized with your monthly payments is not your strong point. Most lenders will fine you if your payment reaches them even a day late. Some lenders may even increase the interest rate on the remainder of the loan. That may cost you hundreds of dollars extra over the term of the loan. With auto-pay, this situation will never arise as your payments will always go out on time, every time.

Laurel road company logo.

Fixed cap on variable-rate loans

Variable rates from 1.64% - 5.65% APR with auto-debit

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One Con for Auto-Pay

The only caveat to signing up for auto-pay is that you must make sure that you have sufficient balance in your bank account. Otherwise, you won’t cover your monthly payment on the due date.

Use College Raptor’s free Student Loan Finder to compare lenders and interest rates side by side!

 

Lender Rates (APR) Eligibility
Earnest company logo.
Variable APR: 1.88% - 5.64%*
Fixed APR: 2.44% - 5.79%*
Undergraduate and Graduate
VISIT EARNEST
Lendkey company logo.
Variable APR: 1.90% - 5.25%*
Fixed APR: 2.49% - 7.75%*
Undergraduate, Graduate, Parent PLUS
VISIT LENDKEY
Credible company logo.
Variable APR: 1.80% - 9.99%*
Fixed APR: 2.15% - 9.99%*
Undergraduate and Graduate
VISIT CREDIBLE
Laurel road company logo.
Variable APR: 1.64% - 5.65%*
Fixed APR: 2.25% - 5.75%*
Undergraduate and Graduate
VISIT LAUREL ROAD
Commonbond company logo.
Variable APR: 1.96% - 7.02%*
Fixed APR: 2.59% - 6.94%*
Undergraduate, Graduate, Parent PLUS
VISIT COMMONBOND
Fixed APR: 2.44% - 5.97%*
Undergraduate, Graduate, Parent PLUS
VISIT ISL Education Lending
Variable APR: 1.87% – 5.41%**
Fixed APR: 2.30% – 5.94%**
Undergraduate, Graduate, Parent PLUS
VISIT Nelnet
Variable APR: 2.94% - 4.84%*
Fixed APR: 2.99% - 4.94%*
Undergraduate and Graduate
VISIT College Ave
Variable APR: 1.86% - 6.01%*
Fixed APR: 2.47% - 5.99%*
Undergraduate and Graduate, Parent PLUS
VISIT ELFi

*APR includes a 0.25% interest rate reduction for enrollment in automatic payments.

**Interest rate reduction of .25% for automatically withdrawn payments from any designated bank account (“auto debit discount”). Auto debit discount applies when full payments (including both principal and interest) are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is canceled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan.

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