“Repayment incentives” are benefits that are offered to encourage you to repay your loans on time. The Direct Loan program offers the repayment incentive of an Interest Rate Reduction for Automatic Withdrawal of Payments. This means you would set up to have your bank automatically withdraw the amount of your monthly loan payment from your checking /savings account and send it to the loan servicer to ensure your payment would be made on time. You receive a 0.25% interest rate reduction on your loans when you use automatic withdrawal of payments option.
You may have other repayment incentives offered on some of the loans you borrowed while you were enrolled. The other incentives would have been offered on loans processed prior to the 2010-2011 academic year. Federal student loans at UNH prior to 2010-2011 were processed under a different program where banks or loan companies known as “lenders” were involved. The individual lenders may have repayment incentives they offer that are different from those offered under the Direct Loan program.
Repayment incentives offered by lenders will likely be forfeited if you consolidate your loans. Before consolidating, you may want to review your loans with your servicer(s) to determine what, if any are the repayment incentives offered on each of your loans.