Loan Repayment Options
As you make your education-loan payments, consider interest savings provisions that can help reduce your loan-repayment costs.  As your personal circumstances change, you should review the repayment plans and deferment/forbearance options that may be available to you.

If you don’t choose a repayment plan when you first enter repayment, you will be placed under a standard repayment plan.  You can always change your repayment terms to suit your financial circumstances by contacting your student loan servicer.  If you don’t know who services or holds your loans, use the National Student Loan Data System Student Access Web Site or contact the Office of Financial Aid. For your information, we have listed loan repayments options that are available for you to choose from.

Federal Stafford and PLUS Loan borrowers can choose from several flexible options when it comes time to repay their loans.  This includes a standard repayment.  This option provides a fixed monthly payment of at least $50.00 over a period of up to ten (10) years.  This is the least expensive repayment option, however, we encourage you to consider other options if your monthly loan payments exceeds 8 to 10% of your gross monthly income.

You may want to consider a graduated repayment if your income is currently limited but you expect higher earnings in the future.  Monthly payments start low and increase over time.  The maximum repayment term under this option is ten (10) years and total interest costs are higher.

Another option to consider is an income-sensitive repayment where payments can be adjusted up or down annually to account for changes in your income.  The minimum monthly payment must cover accruing interest and the repayment period of ten (10) years can be extended to fifteen (15) years under a special forbearance provision.  Like the graduated and income-sensitive options, total interest costs will be higher with this plan.

An extended repayment option is available only to borrowers who did not have a balance on a Federal Family Education Loan Program as of October 7, 1998 and received a FFELP loan after this date.  Extended repayments are only available to borrowers who have an outstanding FFELP loan balance of $30,000 or more.  Under this plan, borrowers can reduce their monthly loan payments by spreading payments over a period of up to twenty five (25) years.

If you are having trouble making your loan payments, do not hesitate to contact your loan servicer.  They will help you resolve your payment problems to keep you from defaulting on your loan.  Borrowers have many options for obtaining payment relief including deferment, forbearance, loan consolidation and repayment plans as described above. Remember, your student loan servicer is your resource for resolving all of your loan-payment concerns and issues. 

Borrowers who meet certain qualifications and submit the appropriate paperwork are entitled to deferments.  Because deferment options vary by the date you first took out a federal student loan and by the type of loan you borrowed, you should contact your loan servicer to see if you are able to qualify for a deferment. Deferments are available if you are unemployed, facing certain economic hardships, serving on active military duty, or returning to school on at least a half-time basis. All deferments are now handled through the National Student Clearinghouse. Please alert your loan servicer to check with them at:

Forbearance is another option for borrowers who need assistant with the repayment of their student loans.  Forbearance allows you to reduce or postpone payments, or extend the time for making payments at the discretion on your lender.  Please contact your loan servicer for information about this repayment option.
Can't Make Your Payments?
Students may also consider loan consolidation as a way to combine all eligible federal education loans into one new loan.  Loan consolidation is a debt-management strategy that can lower monthly payments and extend the loan repayment period, in some cases up to 30 years.  Your best resource for information regarding loan consolidation is your current student loan servicer. 

Consolidation
Steps to Consolidation

Entrance Counseling

Completing your Entrance Loan Counseling Session

Exit Counseling

Completing your Exit Loan Counseling Session

All students who graduate, withdraw, or drop below-half time must complete exit loan counseling. Exit counseling ensures that you understand your rights and responsibilities as a borrower.  You will receive information about repayment choices, postponing repayment (deferment and forbearance), and other valuable data regarding the details of your loan.
Exit Guide

Completing your Federal Direct Loan Master Promissory Note (MPN)

Complete your MPN.

Loan funds cannot be disbursed until this requirement is met.