Now that you are nearing graduation, you need to focus on student loan repayment. When you signed your Master Promissory Note (MPN) to borrow money to finance your education, you signed a legally binding document, obligating you to repay your loans. These loans must be repaid, even if you do not complete your education, find a job or feel you received the level of education you deserve.
It is your responsibility to notify your lender if you:
If you are not able to repay your loans you may request a deferment. A deferment is a temporary suspension of repayment and may be granted under certain circumstances. A deferment is not automatic. You must apply for it and be approved.
You may be eligible for a deferment if:
If you are willing, but financially unable to make your payments you may need to consider forbearance. Forbearance allows you to reduce the amount of your student loan payment or temporarily stop making payments. You must apply for it and be approved.
Forbearance enables you to:
If you are unable to make a scheduled payment, contact your lender/loan servicer immediately. A missed or late payment will not result in default of your loans. However, consistently missed or late payments will have serious consequences, such as:
Good record keeping will help to eliminate missed payments. Remember to keep and organize all loan documents as well as your FAFSA and copies of cancelled checks or money orders. You should know what types of loans you have and the name, address and phone number of your lenders. Make sure you document any phone calls and note the person with whom you spoke.
Posted at April 24, 2009 10:15 PM
Loan consolidation may be an option if you have multiple lenders, variable interest rates, significant loan debt and/or different loan types. It allows you to combine multiple federal loans into one new loan at a fixed interest rate. A federal consolidation cannot include private loans. Students do not have to be in repayment or grace status to consolidate.
A growing number of lenders are leaving the federal student loan program because it is no longer profitable. Contact your lender first to determine whether or not they still participate in federal loan consolidations.
For more information go to William D. Ford Direct Loan Consolidation at:
www.loanconsolidation.ed.gov or call 1-800-557-7392
Eligible loan types
Stafford Loans, Perkins Loans, Health Profession Student Loans (HPSL),
William D. Ford Direct Loans, Grad PLUS Loans
For a list of all your federal loans – www.nslds.ed.gov
Loan consolidation offers both benefits and disadvantages.
Benefits:
Disadvantages:
Posted at April 24, 2009 10:15 PM
If student loans were among the financial aid options that enabled you to achieve your education, you must be sure you understand your obligation to repay the funds and your specific responsibilities as a borrower.
The Office of Financial Aid is required by federal regulations to provide you with the name of your lender(s), an estimate of the first loan payment due date and an estimated payment amount for your federal loans. On or about March 15, 2009, you should have received a loan exit packet containing this information in your campus box. This is important information and should be kept in a safe place.
Your first responsibility as a pending graduate with federal student loans is to complete an exit counseling session at http://mappingyourfuture.org. Follow the instructions provided in your packet. The exit counseling session will provide you with additional information regarding loan repayment, consolidation, deferment, and forbearance options. After you complete this online session, you will have a better understanding of your rights and responsibilities, as well as learn tips for maintaining good credit.
The deadline for completing your exit counseling session is April 15, 2009. The Office of Financial Aid will receive electronic notification once you have completed the exit counseling session. Knowledgeable staff members in the Office of Financial Aid are available to assist you. Please feel free to contact them if you have any additional questions after completing your online exit counseling session.
Posted at April 24, 2009 10:15 PM
Within a year you will likely be making payments on your student loans. Allegheny's Financial Aid Office has compiled some helpful information to inform you of your rights and responsibilities:
Guidelines for Loan Repayment (pdf)
Phone Numbers You May Need (pdf)
Submitted by Sheryle Proper, Director of Financial Aid.
Posted at April 24, 2009 10:15 PM
Credit is your reputation for paying your debts on time. The better your credit rating, the more willing companies are to lend you money or lower your interest rates and fees. Having a poor credit rating can be difficult to overcome. It can take many, many years to restore it....
Print out the full tips sheet attached here. Download file
Submitted by Sheryle Proper, Director of Financial Aid.
Posted at April 24, 2009 10:15 PM
