All information on federal loans may be found at studentaid.ed.gov. Below you will find key information for the student with federal loans. A section about private loans is also provided.
Exit Counseling
Exit Counseling is required by federal regulations. It is important that you complete the session soon after graduation to understand your rights, responsibilities, and options. Exit counseling may also be called an exit interview. More... Around graduation or when you drop below 6 credit hours of enrollment you should have received a letter via email from the Bursar’s office that read something like this: Dear Graduate: This Exit Counseling Guide covers the following topics: Money Management, Repaying Your Loan, Payment of Interest and Capitalization, Avoiding Delinquency and Default, Deferment and Forbearance (Postponing Payments), Discharge (Cancellation/Forgiveness), and Loan Consolidation. Some key points are summarized here: You need to complete exit counseling with each loan lender. Do not delay completing the exit interview. It does not take a lot of time and there is valuable information about your rights and responsibilities.
As a Federal Direct Loan borrower, you are required to complete an exit counseling session. More importantly, we want to remind you of your rights and responsibilities when your loans are to be repaid. Exit counseling provides a complete explanation of repayment, deferments, consolidation, and cancellation privileges.
Direct Federal Repayment
There are four repayment plans for Direct Federal Loans. A guide to repaying loans can be found here; studentaid.ed.gov. Some of the information is summarized here.More... But remember, the longer you take to repay, the more you will repay. Use the chart at the end of the Exit Counseling Guide to estimate the monthly and total amounts you would repay under these plans. Be alert to the opportunity to consolidate, or combine all of your student loans, into one new loan at a lower interest rate. The interest rates on most federal student loans are variable and are adjusted annually with a cap of 8.25%. However, interest rates on consolidation are calculated at a weighted average of your loans and may result in a lower interest rate for the life of the loan. Consolidation information here; studentaid.ed.gov.More... If you choose to consolidate, make sure you do not waive your right to a six-month grace period post-graduation. Note that if you are in repayment, consolidation may extend your repayment period. DO YOUR RESEARCH ABOUT THIS, IT MAY OR MAY NOT BE A GOOD IDEA FOR YOU. Consolidation Facts When to Consolidate Eligible Loans for Consolidation If you have loans through private lenders such as Citi Bank or Sallie Mae, you are required to complete an exit interview with them as well. This is to ensure that you understand the ins and outs of repaying your student loans. Some lenders offer different regulations about repaying your loans. Many of these interviews can be completed online.More... Sallie Mae Loan services also offer repayment options similar to direct loans from the federal government. Visit them online at salliemae.com for full details. CitiAssist loans from Student loan corporation/Citi Bank offer two repayment plans. Visit them online at studentloan.com There is a six-month grace period post-graduation before repayment begins. For CitiAssist® Loans, the maximum repayment periods are: studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full-time by certain public service employers. The website listed above has a lot of good information about this program, and is even easy to understand! As of September 1st, 2017 this program is still available but may see changes. Below is a link to an article explaining the current standing. If you think you might have a problem making the scheduled payments on your loans, contact the Direct Loan Servicing Center immediately to discuss other repayment plan options and whether you are eligible for a deferment or forbearance. Default occurs when you become at least 270 days delinquent in making payments on your loans.More... You are delinquent if your monthly payment is not received by the due date. If you fail to make a payment, they will send you a reminder that your payment is late. If your account remains delinquent, they will send you warning notices reminding you of your obligation to repay your loans and the consequences of default. Late fees may be added, and your delinquency will be reported to one or more national credit agencies. Default Penalties include: Problem #1: You never completed an exit interview. Action plan: Contact your financial Aid office they will direct you to the appropriate place to complete the interview.More... Problem #2: You received loan money in school, but have never received any bills and have not paid any money to your lenders. Action plan: Call your loan company. If you do not know how to get in touch with your loan company, call the Federal Student Aid Information Center at 1-800-433-3243. They will be able to tell you who your lenders are and how to contact them. Problem #3: You cannot afford to pay any money to the lenders, and have never contacted them. Action plan: Call your lenders and negotiate with them. At this point, you may be in default on the loan. As this is not good for your credit history, you should try to work/negotiate with the loan company to get them to help you get out of your default status. Each loan company wants their money back, and they will do what they can under the law to get it. However, if you are broke and you cannot pay them, they will help you work out a mutually beneficial deal. If you do not contact them, they will not be able to help you and will try to get their money any way they can. If you call them they will work with you, which is generally much better for you! The bottom line: No matter what the problem is, and no matter how much time has passed, contact your loan company.
Loan Consolidation
Private lenders
Student Loan Forgiveness Program:
In 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs.More...
money.cnn.com/2017
Avoiding Delinquency & Default Penalties
Troubleshooting Loan Problems