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Hi NPrins!

Is it really a 2% reduction, or does the rate stay the same, and an amount equal to a 2% cut off the interest get applied to the loan as an additional payment by Sallie? it sounds like the rate always stays at 8% (or whatever variable rate), and the "Great Reward" is a totally separate transaction. If the two are put together, it's like you got a reduction of 2%.

This seems to me the only way they can get away with saying that you lose the benefit if you move out of their payment plan. In a normal loan, once you have 4%, that's what you have.

(I wonder if people can go lock in Direct Loan's low rate, which is permanent (not a credit applied to the loan) after 12 months' payments are made, and then migrate over to Sallie with a 5.2% loan, and inevitably get a 3.25% loan if they pay within 10 years . . .)
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