Effective Date: 7/1/2022
Last updated on: 7/1/2022
These Ascent Borrower Benefits (the “Borrower Benefits”) are a legal agreement between you, as a current or prospective customer of Ascent’s services (“you,” “your,” “applicant,” or “borrower”), Ascent Funding, LLC (“Ascent,” “we,” “our” or “us”), and the Bank of Lake Mills (“BOLM”). The Borrower Benefits described on this site, including their terms, conditions, availability, or pricing, are subject to change at any time, without notice.
Automatic Payment Discount
These Automatic Payment Discount Terms & Conditions are applicable to eligible loan applications received on or after 07/1/2021.
Eligibility for the Automatic Payment Discount is limited to borrowers that have an Ascent loan that was originated by BOLM and are enrolled in and making automatic debit payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month with the loan servicer.
Additional eligibility terms include:
- The loan must be current. Loans in a delinquency and/or default or charge-off status, or loans in modified or reduced repayment programs other than the Ascent Progressive Repayment program are not eligible.
- The required minimum monthly payment amount must successfully be made on time.
- Borrowers lose this benefit after two (2) consecutive Insufficient Funds (“NSF”) payments, until they requalify by satisfying the NSF payment and fees and re-enroll in ACH payments.
- If a borrower has a deferred repayment plan, they will still need to make a monthly payment of $1.00 or more while in school to be eligible for the Automatic Payment Discount.
Eligibility for the Automatic Payment Discount by repayment plan or status:
- Interest-Only Repayment: Borrowers are eligible to receive the Automatic Payment Discount when they are enrolled in automatic debit payments with the loan servicer and pay at least the in-school interest payment amount on-time each month during the in-school and grace periods. Full principal and interest payments will be debited when the loan enters repayment at the end of the grace period.
- $25 Minimum Repayment: Borrowers are eligible to receive the Automatic Payment Discount when they are enrolled in automatic debit payments with the loan servicer and pay at least the $25 minimum payment amount on-time each month during the in-school and grace periods. Full principal and interest payments will be debited when the loan enters repayment at the end of the grace period.
- Deferred Repayment: Borrowers are eligible to receive the Automatic Payment Discount only when a payment amount of at least $1.00 is debited from their account. Borrowers may satisfy this requirement by enrolling in automatic debit payments with the servicer and authorizing an optional additional fixed payment amount of at least $1.00 more than the minimum monthly payment. During deferment, the minimum monthly payment is zero ($0.00), but the fixed amount will be debited. When the loan enters repayment at the end of the grace period, full principal and interest payments plus the fixed payment amount will be debited.
- Full Principal and Interest Repayment (and Progressive Repayment): Borrowers are eligible to receive the Automatic Payment Discount when they are enrolled in automatic debit payments with the loan servicer and pay at least the required minimum principal and interest payment amount on-time each month.
Under any repayment options listed above, borrowers may elect to include an optional additional fixed payment amount to be debited in addition to the required monthly minimum.
b. Additional Terms
Automatic Payment Discounts are applied as a reduction in the rate at which interest accrues on an eligible student loan. This may change the amount of a borrower’s minimum monthly payment, may change the total number of payment necessary to pay off a borrower’s loan, and may change the amount of a borrower’s final payment.
The amount of the Automatic Payment Discount offered is dependent upon proprietary credit decisioning criteria used in rendering a loan approval. The available Automatic Payment Discount for a particular loan is disclosed to applicants upon presentation of the loan offer.
No more than one Automatic Payment Discount may be applied to an eligible student loan.
Notice to borrowers:
- It is your responsibility to notify the loan servicer if you believe the Automatic Payment Discount has not been applied correctly.
- To enroll in automatic payments, you must contact Launch Servicing, directly after your loan has been disbursed:
- The Automatic Payment Discount will begin after successful completion of your first payment that is made through automatic debit.
- If you cancel your enrollment in automatic debit, the Automatic Payment Discount will be discontinued as of the date of the last payment made through automatic debit.
- You will lose this benefit after two (2) consecutive NSF payments, until you requalify by satisfying the NSF payment and fees and re-enroll in ACH payments.
c. Automatic Payment Discount Details
The current offered Automatic Payment Discount is an interest rate reduction of either 0.25% (for Credit-Based Loans) or 1.00% (for Undergraduate Outcomes-Based Loans).
- 0.25% Automatic Payment Discount applied when eligible borrowers are making automatic payments on their Ascent credit-based student loan via auto debit from their personal checking account.
- 1.00% Automatic Payment Discount applied when eligible borrowers are making automatic payments on their Ascent non-cosigned outcomes-based student loan via auto debit from their personal checking account.
These Terms and Conditions are applicable to eligible loan applications funded by BOLM and received on or after 02/04/2021. Ascent and BOLM reserve the right to amend these Borrower Benefits at any time, without notice.
1% Cash Back Graduation Reward
In order to be eligible for the 1% Cash Back Graduation Reward, borrower must meet the following criteria after graduation:
- The borrower must initiate the request for the granting of the graduation reward.
- The borrower has graduated from the degree program that the loan was used to fund.
- The borrower must provide adequate documentation to verify proof-of-graduation under the requisite degree program.
- The borrower may change majors and/or transfer to a different school, but must obtain the same level of degree (e.g. Bachelor’s, Master’s, Doctorate, etc).
- The graduation date is more than 90 days and less than five (5) years after the date of the loan’s first disbursement.
- Any loan that the student has borrowed under the Ascent loan is not more than 30-days delinquent or in a default status as of the graduation date and until any Graduation Reward is paid.
- The loan must not have been refinanced or consolidated with another lender prior to redeeming the reward.
- The borrower must enroll in Automatic Debit payments for repayment of the loan.
- The borrower must provide information that enables Ascent to deliver the funds electronically.
- Ascent (or loan owner at the applicable time) will calculate the 1% Cash Back Graduation Reward based on the original principal balance of the applicable loan. Such amount will be sent to the borrower in an agreed upon format, such as direct deposit or check.
- The student borrower is only eligible to receive the reward one time.
b. Additional Terms
This reward is considered taxable income and may be reported on IRS Form 1099-MISC. We recommend you consult a tax professional for advice.
Borrowers can apply to release their cosigner based on the following eligibility requirements:
- The borrower must meet the eligibility criteria requirements for an Ascent Non-Cosigned Credit-Based Loan.
- The borrower must have successfully paid twelve (12) consecutive, full principal and interest payments on-time or an equivalent prepayment amount and meeting other eligibility criteria.
- The borrower must request to enroll in making automatic payments through Ascent’s sister company, Launch Servicing, LLC.
Launch Servicing, LLC will notify the borrower within ten (10) business days of applying to release their cosigner if they have been approved or they will be advised if additional information is needed.
These Terms and Conditions are subject to change without notice. We may change them at any time including, but not limited to, changing the eligibility criteria or imposing additional conditions.
These Borrower Benefits were last updated on July 1, 2022.