Answers to Loan Repayment Questions
Federal Stafford Loans
Repayment on the Subsidized and Unsubsidized Stafford loans begins six months after the student graduates or is no longer attending school at least half time.
Federal PLUS Loans
Repayment on the Parent PLUS loans begins 60 days after the last disbursement for the academic year. The parent is given the option on the loan application to defer payments until either their student is no longer in school or until they are out of school for six months, if either of these options are chosen please note that interest is still accruing on the loan during this time.
Repayment on the Graduate PLUS loans begin six months after the student graduates or is no longer attending school at least half time.
Repayment on the Perkins loans begins nine months after the student graduates or is no longer attending school at least half time.
If you are unable to pay your student loans on time there are some options you should be aware that you have:
1. Contact your loan servicer to discuss a different repayment option with a lower monthly payment.
2. Contact your loan servicer to see if you qualify for a deferment on your loans. This is a period of time where your loan payments are on hold with no interest accruing on the Subsidized portions of your loans. Typical reasons to qualify are being unemployed, going through an economic hardship or being back in school at least half time.
3. Contact your loan servicer to see if you qualify for a forbearance on your loans. This is a period of time where your loan payments are on hold with interest accruing on all of your loans.
If you become 270 consecutive days or more past due on your loans your loan will be in default, at this point your lender can take some drastic action against you including but not limited to:
- losing eligibility to borrow additional federal financial aid until the default is resolved
- your loan being sent to collections
- your federal and state tax refund can be taken by the IRS and applied to your outstanding loan debt
- your wages may be garnished by your employer
- legal action can be taken against you by your loan servicer
- Student Loans: Information about managing repayment and repayment options or if you have questions about student loans including loan consolidation. Students cannot apply for a consolidation loan while attending school.
- Federal Student Aid: Overview of federal financial aid information pertinent to students before, during and after attending school.
- National Student Loan Data System: (NSLDS) provides information on all of your loans including how much you owe and who is the servicer of your loan.
- Student Loan Refinance: Gives students loan refinance options.