DENVER (CBS4) – This month thousands of graduates are joining the work force. Many of them will be facing large student loan bills as they finish their education.
CBS4 money saver Suzanne McCarroll found an easy way to save some money on those loans.
Jill Ybarra feels good to be a graduate.
“I’m glad to be moving back into the working world,” Ybarra said.
As Ybarra looks forward to getting into the working world, she’s looked back at the paperwork for her student loans. She noted a discount she could get just for graduating.
“Simply just reading through the paperwork, it wasn’t super hidden, but it’s just a little chart,” she said.
Deep in the fine print Ybarra found she could get a half percentage point off her interest rate if she notified the bank she had graduated. The discount is common among private bank loans. All student loans offer a quarter percent off the interest rate for those who sign up for automatic payment.
Also, many government loans for students are forgiven if they become a teacher, a civil servant, or a lawyer in an underserved area.
“I think it’s one of those things that can be over looked,” Ybarra said.
What may seem like a small discount could save some students thousands of dollars over the life of their loan, which means more money in their pocket.
“Making sure that you’re able to spend your money the on things you want to and not just on interest payments.”
Ybarra did have to call her bank to get the graduation discount. The break didn’t just kick in when she graduated. She also waived her deferment period so she could begin benefiting from the automatic payment discount.