Borrower Benefits
For Loans First Disbursed on or after Dec 1, 2007
Federal Stafford Loan Borrower Benefits
Upfront Fee Rebates
- Origination Fee – IDAPP offers zero origination fees.
- Default Fee – For Stafford loans guaranteed on or after December 1, 2007, IDAPP pays ½ of the 1% default fee and the guarantor ISAC will pay the other ½ of the default fee on behalf of the borrower.
Repayment Benefits
Certain incentives are offered to encourage borrowers to work in Illinois, and especially to assist those pursuing careers in lower-paying jobs (e.g., teachers, social workers) that are crucial to the welfare of the citizens of Illinois.
In order to qualify for any of the following borrower benefits, the borrower must reside and be employed in the state of Illinois:
- Regardless of income, a 0.5% interest rate reduction can be earned immediately for obtaining Illinois employment. Eligibility begins once the borrower enters repayment and becomes employed in Illinois. Annual proof of employment is required.
- Direct Debit Program – By signing up for IDAPP’s automated payment feature, the borrower can choose to have a loan paid directly from a checking or savings account. Selecting this feature reduces the borrower’s interest rate by 0.30%.
Federal PLUS Loan Borrower Benefits
Upfront Fee Rebate
- Default Fee – For Plus loans guaranteed on or after December 1, 2007, IDAPP will pay ½ of the 1% default fee and the guarantor ISAC will pay the other ½ of the default fee on behalf of the borrower.
Repayment Benefits
- For Federal PLUS loans that are disbursed on or after July 1, 2003, IDAPP rebates 1% of the principal balance when the loans enter into repayment status. The rebate shows as a credit on the loan account. This 1% represents a partial refund of the loan origination fees (3%) paid when the loans were disbursed. If no origination fee was charged, this benefit is not applicable.
- After we receive the borrower’s first 24 consecutive on-time* monthly payments, IDAPP reduces the interest rate by 1%. IDAPP reduces the interest rate again by 1% after the borrower’s first 48 consecutive on-time* monthly payments.
(*A payment is considered on-time if it is received within 15 days of the due date. Eligibility of ALL benefits will be revoked when an account becomes more than 15 days delinquent. Subsequent eligibility is prohibited.)
- Direct Debit Program – By signing up for IDAPP’s automated payment feature, the borrower can choose to have a loan paid directly from a checking or savings account. Selecting this feature reduces the borrower’s interest rate by 0.25%.
Federal Consolidation Loan (UnILoan) Borrower Benefits
Upfront Fees Rebate
Federal Consolidation loans do not charge a federal default fee or any loan origination fees.
Repayment Benefits
- If we receive the borrower’s first 36 consecutive, on-time* monthly payments, we will reduce the interest rate by 1% for the remaining term of your loan.
(*A payment is considered on-time if it is received within 15 days of the due date. Eligibility of ALL benefits will be revoked when an account becomes more than 15 days delinquent. Subsequent eligibility is prohibited.)
- Direct Debit Program – Sign up for IDAPP’s automated payment feature. You can choose to have your loan paid directly from your checking or savings account. Selecting this feature will reduce your interest rate by 0.25%.
