College Loans Activities

Question When you graduate, can your college federal loan totals go down based upon immaculate payment record ?
If i'm paying my college loans when I graduate college, if I pay more then the minimum amount and always on time will my interest rates go down as well as my total ? I know my g/f told me her loans went from 12,000 to 9,000 because like when you owe money collection companies settle with you, how does this work and does my theory of paying immaculately apply to federal loans ?

Best Answer A collection agency would not be involved with your student loan unless she defaulted on it (didn't pay on it). So in that case, no, it wouldn't/didn't go down because of her "immaculate" payment history. lol Federal loans are not the same as other debt... the lenders WILL get the money you borrowed from them because they have to right to garnish your paychecks, seize your income tax returns, heck... even when you are old and gray and drawing social security they can take that too... No collection agency is going to be quick to "settle" a student loan for a lesser amount because they WILL get their money eventually. Some lenders Do have special programs set up to lower you interest rate and ultimately lowing the amount you have to repay... Sallie Mae has a program called "Great Rewards" in which if you made a couple of dozen worth payments on time they would lower your interest rate. If i recall correctly, if you set your payments up to auto withdraw directly from your bank account they would also lower your interest rate a bit. Pay on time and you will pay less in the long run!