Repaying Your Student Loans

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28 Οκτ 2013 (πριν από 4 χρόνια και 16 μέρες)

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Your future.
Our Mission.

Student Financial Assistance Office

Repaying Student Loans










Take inventory your federal student loans



Explore repayment plans available



Understand the basics of consolidation



Learn about deferment and forbearance

Taking Inventory

Where can I obtain information on my
federal loans?





National Student Loan Data System (NSLDS)





http://www.nslds.ed.gov/


Provides loan amounts, loan holders, and loan servicers

What happens to my loans when I
leave school?


A FFELP or Direct Stafford loan either:




• Will enter a 6
-
month grace period




• Will enter repayment


A Perkins loan either:




• Will enter a 9
-
month grace period




• Will enter a 6
-
month post
-
deferment grace period


A Grad PLUS loan either:




• Will enter a 6
-
month deferment




• Will enter repayment


A federal consolidation loan:




• Will enter repayment


A private or alternative loan




• Contact the lender

What should I expect from my
loan holder/servicer?


Repayment disclosure notices



-

Outlines the terms of the loan(s) borrowed



-

Provides the repayment options available



-

Establishes the first payment due date

What does my loan holder/servicer
expect from me?



-

To select a repayment plan

-

To make timely payments on your



loans

-

To provide updated contact





information whenever it changes

-

To contact the loan holder whenever


you are having difficulty





managing repayment

Learn More

sfa.mst.edu

Can I pre
-
pay on my loans?



Learn More

sfa.mst.edu

Yes…

-

If sending in a prepayment, make sure

you inform the lender to apply the

prepayment to the principal of the


loan balance


-

There is no prepayment penalty

What repayment plans are available?

-
Standard

-
Graduated

-
Extended

-
Income
-
sensitive (FFELP only)

-
Income
-
contingent (FDLP only)

-
Income
-
based

Overview of repayment plans

Learn More

sfa.mst.edu

How do repayment plans work?


Standard
:


-

Lowest total loan cost.

-


Regular payments of both principal and interest are due
monthly, excluding periods of deferment and forbearance

-
Minimum monthly payment is $50 with 10 yr repayment


Graduated
:

-

Monthly payments are smaller at the start of the
repayment period and gradually increase every two years

-

10
-
year repayment term

-
Total amount paid in interest will be greater than under the
standard repayment plan


Repayment Plans
con’t


Extended
:


-

Lengthens repayment term up to 25 years

-

Available to borrowers with more than $30,000 in federal
student loans (per program)

-
Total interest costs may be higher over life of the loan,
although monthly payment amount may be lower


Repayment plans con’t


Income
-
sensitive (FFELP):

-

Offered only to borrowers under the FFELP

-

Monthly payment varies according to gross
monthly income

-

Monthly payment covers at least monthly
accruing interest

-

Must reapply annually

-

Total interest costs will be higher over the life of
your loan than with standard repayment

-

Maximum repayment period is 10 years

Repayment plans
con’t


Income
-
contingent (FDLP):

-

Offered only to borrowers under the Direct
Loan Program

-
Monthly payment based on adjusted gross
income, family size, and total Direct Loan debt

-

Maximum repayment period is 25 years, and
any balance after 25 years (time spent in
deferment or forbearance does not count) is
forgiven.




What is income
-
based repayment
(IBR)?



Learn More

sfa.mst.edu

-
IBR is designed to help borrowers
experiencing a “partial financial
hardship”.


-
Available to Stafford,

Grad PLUS, and certain

consolidation borrowers.





How do I apply for IBR?

Contact loan holder/servicer and request an IBR plan

-
IBR forms available at:


http://studentaid.ed.gov/PORTALSWebApp/stud
ents/english/IBRPlan.jsp

-

Borrower must:


Apply annually (payment amount may fluctuate)

-

Provide permission for IRS to disclose AGI "and
other tax return information“

-

Certify family size


Basics of Consolidation



Consolidation enables you to bundle one or
more federal student loans into a single new
loan.



At time of consolidation, your consolidating
loan holder pays off the outstanding balances
of the loans you include in the consolidation.



No fees.

Who can consolidate?




Any federal student loan borrower,


including:

-
Borrowers with student loans.

-
Borrowers with student & parent loans.

Learn More

sfa.mst.edu

How do I qualify?




You must be in your grace period
or in repayment on each loan
being consolidated.



You can still obtain a Consolidation
loan if you are delinquent or in
default on one or more of your
existing loans.

What loans may be consolidated?




Federal Family Education Loans



Federal Direct Loans



Federal Perkins Loans



Health Professions Student Loans



Nursing Student Loans



Health Education Assistance Loans

Learn More

sfa.mst.edu

What loans
may not
be consolidate?



Private (alternative) education loans



Other consumer debt

**Private consolidation loans




Do not offer the same advantages


(i.e., repayment options, deferments, etc.)


as a federal consolidation loan




Interest rate will be credit
-
based and likely


higher than a federal consolidation loan

Can I ever “Re
-
consolidate”?



Generally, no




You may only reconsolidate if
you consolidate an existing
Consolidation loan with another
loan outside the Consolidation
loan

Learn More

sfa.mst.edu

Factors to consider in consolidating

+

Bring together loans with multiple loan holder
for convenience of one payment.

+

Lower loan payments by lengthening repayment
period.

+

May be able to lock in a more favorable interest
rate.

-
May lose some or all of grace period.

-
May lose certain borrower benefits

-
May increase total cost of loan if you lengthen
your repayment period, you will pay more
interest in the long run.

Loan Deferment


A deferment is a period of time when payment on a
loan is
temporarily

postponed.


Interest payment


Federal government pays the interest during
deferments for subsidized loans and for the
underlying subsidized loans that were
consolidated.


Borrower is responsible for the interest for
unsubsidized Stafford loans,
GradPLUS

loans, and
PLUS loans and for the underlying unsubsidized
loans that were consolidated


Types of Deferment



Enrolled at least half
-
time at an approved postsecondary
school


Study in an approved graduate fellowship program or an
approved rehabilitation training program for the disabled


Unable to find full
-
time employment (up to 3 years)


Economic Hardship (up to 3 years)


Engages in service listed under discharge/cancellation
conditions (Perkins only)


Active Military Duty, for loans first disbursed on/after July
1, 2001; while borrower is on active duty during a war or
other military option, or national emergency (up to 3
years)


www.studentloans.gov


Forbearance


A period of time during which the borrower is
permitted to temporarily cease making payments
or reduce the amount of the payments.





Borrower is liable for all interest that accrues on
the loan.



Contact your loan holder


• Some deferment types require an application






Helpful Resources


www.federalstudentaid.ed.gov/students.html


www.studentloans.gov


www.nslds.ed.gov


www.dl.ed.gov


www.loanconsolidation.ed.gov


www.finaid.org


www.tgslc.org/borrowers

Student Financial Assistance Office



G
-
1 Parker Hall


573
-
341
-
4282


1
-
800
-
522
-
0938


sfa@mst.edu


sfa.mst.edu