I am currently planning to consolidate my student loans with UHEAA. I posted a question about their reporting practices over in the Credit forum, but thought I would link to it here in case any of you would like to chime in:

http://creditboards.com/forums/index.php?showtopic=71696

Thanks!

I would say shop around some more. I got 5% up front principal reduction from Keybank last spring. Chase was offering 5% cash back also at the time. This is for 36 ontime payments. There is a poster here who did the math and the up front principal reduction is the better deal in the long run.

I got an additional 1/4% reduction for direct debit. If you don't make the payments during the incentive period, the banks remove their incentive.

Key Bank has the worst product I've ever seen! Interest rate sucks, loan fees and no 5% principal reduction.
http://www.keybank.com/templates/t-ps2.jhtml?nodeID=H-1.39.b

I see what you are saying, however, in my case, it would be a federal loan consolidation, not a private one (you link to the private terms). The federal one does have the 5%:
http://www.keybank.com/templates/t-ps2.jhtml?nodeID=H-1.39.a

Oh that makes sense, I thought it was for federal loans. Here's a link to a good calculator from Nelnet that compares a 1% interest rate reduction and a 3.33% principle reduction.
http://www.consolidation.nelnet.net/Apps/CalcConsolComp.asp