MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank now offers student loan customers two new incentives to graduate: the U.S. Bank Graduation Perk1 and the Good Grades Perk1. With these discounts, U.S. Bank encourages students to complete their degrees with an added bonus if they graduate with a cumulative grade point average (GPA) of 3.30 or higher. Eligible student loan customers have the opportunity to earn up to three percent off their original loan amount financed.
“Graduating from college, especially with good grades, is an important step towards starting a career,” said Lucille Conley, senior vice president of U.S. Bank Consumer Lending. “Everyone wins when students are encouraged to earn good grades and receive their degree.”
The Good Grades Perk rewards students with a one percent principal reduction from their original loan amount financed if they graduate with a cumulative GPA of 3.30 or higher. The Graduation Perk rewards students with a two percent principal reduction from their original loan amount financed if they show proof of graduation. With this one time loan forgiveness, U.S. Bank student loan customers will have their account balance reduced by the amount of the reward, which may decrease their monthly payment.
The U.S. Bank Graduation Perk and Good Grades Perk can be applied to both the bank’s fixed rate and no fee (variable rate) student loans. U.S. Bank offers several benefits for customers in addition to the new perks, such as AutoPay discounts2, optional deferred payments3 and the option to add a cosigner which may help lower the loan’s annual percentage rate. “Students should always explore federal loans, grants and scholarships before private loan options, but when they need funds to fill the gap, a U.S. Bank Student Loan is a smart choice,” Conley said.
The Graduation and Good Grades perks are available to anyone who has applied for a U.S. Bank Fixed Rate and U.S. Bank No Fee student loan on or after August 1, 2011. Student loan customers who qualify for one or both of these perks will have 12 months to prove their status and redeem their loan discount. For more information, visit the U.S. Bank Student Loan website at www.usbank.com/student-loans.
U.S. Bank is one of the top student banking institutions in the nation, providing a comprehensive line of student banking products including student loans, campus ID card programs, Internet banking, U.S. Bank student checking and savings and Visa Buxx® prepaid spending cards.
U.S. Bancorp (NYSE: USB), with $321 billion in assets as of June 30, 2011, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,086 banking offices in 25 states and 5,086 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at www.usbank.com.
Disclosures
1. To be eligible, loan application must be received on or after August 1, 2011 and loan proceeds must be disbursed prior to graduation date. Graduation Perk requires proof of graduation date, and Good Grades Perk requires proof of graduation date and cumulative GPA of 3.30 or higher, which must be submitted by the borrower no later than 12 months after graduation date. 2% principal reduction for Graduation Perk and 1% principal reduction for Good Grades Perk will be credited to the student loan account balance and are based on the original amount financed, excluding loan fees, interest (including accrued and unpaid interest which may be capitalized at repayment) and any loan proceeds returned by school or not disbursed. Borrower cannot be delinquent or in default at the time of request. Loans that are consolidated, refinanced or paid in full prior to redeeming the perk(s) are not eligible. 2. Automatic payment is a requirement to be qualified for the interest rate reduction benefit. Auto-payment is set up through our loan servicer. If the auto payment feature is canceled by the borrower, the rate reduction benefit is lost but may be reinstated. If the auto-payment feature is revoked, the rate reduction benefit is lost and cannot be reinstated even if automatic payments are re-established on the loan 3. Interest will continue to accrue during periods of deferment. This deferred interest, if not paid, will be capitalized (added to your principal loan balance, and interest will accrue on this new balance) at repayment.
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