 |
|
|
|
| |
Loans - Repayment |
| |
|
| |
|
Students and Parents who have borrowed a federal, state or supplemental loan are required to repay the amount of funds borrowed, with interest according to the terms of the promissory note that was signed. The loan repayment period is usually ten years. |
|
| |
| |
 |
Repayment Begins |
|
| |
|
For student loans, students who have been withdrawn or have completed their requirements will enter their grace period. When the allotted grace period has ended, the student will begin repayment on a monthly basis on the loans borrowed.
For Federal Stafford Loans, repayment begins six months after the student graduates, withdraws, or stops attending school at least half time. For Federal Perkins Loans, there is a nine month grace period and for Health Profession or Nursing Loans, there is a twelve month grace period. Supplemental Loans vary in the grace periods available. However, there are numerous options such as loan consolidation, deferment, and forbearance that can extend the repayment period, depending upon your circumstances.
For Parent Loans, repayment usually begins 30 to 90 days after the disbursement of the loans funds. For Federal PLUS loans, repayment of interest and principal begins 60 days after the loan is fully disbursed. An option for in-school forbearance is available for up to 60 months. The loan repayment term extends up to 10 years. |
|
| |
| |
|
Federal Student Loan Repayment Options |
|
| |
|
Standard Repayment
In this repayment method, equal monthly payments of principal and interest are made over the loan repayment term (usually ten years). You'll pay the least amount of total interest using this payment plan.
Income-Based Repayment
The amount of the monthly payment is calculated at 15% of discretionary income (the difference between AGI and the federal poverty line). The maximum repayment period is 25 years; if you are unable to repay your loan in this amount of time, the loan will be discharged. Additional information on the IBR plan is available here.
Income-Sensitive Repayment
In this plan, monthly payment amounts are calculated as a percentage of monthly gross income. As your income may change, you must reapply for this plan every year.
Graduated Repayment
This repayment method payment allows you to make reduced payments in the earlier years of your loan repayment term, with a gradual increase in payment amount over time.
Extended Repayment
If the total balance of your Federal Stafford, PLUS, or Consolidation loans is above $30,000, you may apply for an extension on your repayment term (up to 25 years).
Prepayment
You may pay all or part of your loan balance during the term of the loan without penalty. This will greatly reduce the total interest paid on your loans.
Deferment
A deferment is a period during which payments of principal are postponed. No interest accrues on either Subsidized Stafford or Perkins loans. Interest is charged on Unsubsidized Stafford loans and may be paid or allowed to accrue and capitalize. Borrowers must meet specific eligibility criteria and request the deferment from their lender(s).
Forbearance
During a period of forbearance, borrowers may either suspend payments or reduce their scheduled monthly payment amount on a temporary basis. The lender grants forbearance for a period of up to one year for borrowers who are willing but unable to make their monthly payments. The forbearance is renewable upon the borrower's request and the lender's approval. Interest continues to accrue on the subsidized and unsubsidized loans. The accrued interest may be paid or will be capitalized after the forbearance ends. |
|
| |
| |
|
Borrower Responsibilities |
|
| |
|
Once you have signed a promissory note for a loan, you are subject to all of the terms and conditions. If eligible, you will be awarded loans as part of your financial aid package. It is your responsibility to notify Student Financial Services in writing if you do not wish to accept the loans offered. Repayment on loans is required regardless of your being notified of your debt. It is a student's responsibility to know when repayment is due. |
|
| |
| |
|
|
|
| |
|
|
 |
