The DLR Rebate is not understood by anyone. This included me when I first got my student loans. Infact I was going to write an angry letter to the president as a result of it.
I had a seasonal business I ran and decided I was going to make a double payment one month when I had the most money and skip another month. All of a sudden I got a letter telling me I was disqualified for my rebate. Even though I made enough to pay both month just early. I was confused and angry.
Now I still think its stupid, but when I was sitting in my training class and it came up at least I finally understood how it works. First off it is a rebate of your origination fee. It is taken up front and you are not told about it so you don’t know this rebate even exists.
How do you keep this rebate? You must pay you payment within 6 days of your due day for your first 12 payments. If you do not meet these requirements you are disqualified and the amount is added back to your loan.
It is added back after the 13th payment. However if you pay the loan off before the 13th payment occurs, the rebate will not be added.
These were done away with recent loans so luckily for new borrowers you do not have to worry about all the stupidness that is the DLR Rebate.
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