LELA

Repayment Benefits

Borrowers of the Lela RefiHELP loan have two ways to reduce the interest rate on their loans.

Automatic Payment Interest Rate Reduction

Borrowers can earn a 0.25% interest rate reduction1 when they sign up to have monthly payments automatically withdrawn.

On-Time Payment Interest Rate Reduction

Borrowers may reduce the interest rate on their loans by 1.00%2 after the:

  • First 24 consecutive monthly, full payments are received on time for loans with a 5-year repayment term.
  • First 36 consecutive monthly, full payments are received on time for loans with a 10-year repayment term.
  • First 48 consecutive monthly, full payments are received on time for loans with a 15-year repayment term.

To qualify for the on-time payment benefit, payments must be received no later than five days after the due date and must be on a standard (level) repayment plan. The use of deferment during this time will make the loan ineligible for the interest rate reduction benefit.

1 The 0.25% interest rate reduction will apply once payments begin to be automatically deducted and will remain in effect as long as automatic payments continue without interruption during the repayment period. The 0.25% interest rate reduction will not lower the monthly payment amount but will instead reduce the interest amount that accrues. The interest rate reduction will be suspended during approved forbearance(s) or if automatic payments are rejected due to insufficient funds.

2 The 1.00% interest rate reduction will apply once the required payments have been submitted and will remain in effect for the remaining term of the loan. The 1.00% interest rate reduction will not lower the monthly payment amount but will instead reduce the interest amount that accrues.

Change Notice: Lela reserves the right to change the program in any way from time to time without notice.

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