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Showing posts with label Federal Parent Loan. Show all posts
Showing posts with label Federal Parent Loan. Show all posts

4/26/2008

The parent’s role on the students’quest for federal assistance - Part 2

Even though many scholars and other behavioral investigators have “skillfully” determined that this is not a factor, common sense tells us otherwise, so much so, that countries that have strong family structures see the less amount of criminal behavior amongst their young.

When the children are born and until they reach mental and physical maturity, it is the responsibility of the parents to provide them with structure and stability enough for them to form and make their own perception of the importance of family. It most likely will not matter what type of family as long as the moral, ethical and social guidelines are respected. Gay couples must abide just the same as heterosexual ones to the same moral, ethical and social guidelines. However, this is subject of a different discussion.

Parents need to prepare for their child’s need to advance his or her studies. Being caught without any preparation does not mean that is the end of the world but it can make it harder.

• Prepare in advance

It might sound trivial and over used, but setting aside at least a small part of the paycheck to prepare for higher education costs is definitely a good idea. Do not leave your children’s opportunity of a better future in the hands of fortune, whether or not they might qualify for a student loan or federal education assistance.

Tradition says that the best way to go is to put the money on a savings account. This is not such a good idea, though it is far better than having nothing at all. And ideal scenario is to set aside the money and then invest it. There are different investments available and each investing executive can provide sufficient information for even the nonprofessionals to understand and be able to handle their own investments.

However, there are some points to be considered:

o To a longer period, the sum of money stays invested, the bigger that the gains will be.

Most banking and investing institutions provide several investing terms: 28 days, 6 months, 1 year, 5 years and so on. When a person invests in a banking institution, the bank makes the commitment to maintain the interest rate for the investment within a interest rate range, in this manner, if the market crashed or inflation increases, the investor will loose as little as possible of his or her economical capacity on the sum that was invested.

Investments can be on a banking institution or on a investing institution that specializes on the investing of private money. Additionally, parents can invest on real estate.

o Investment on banking institutions

4/25/2008

Student Loan Debt Consolidation - How To Reduce The Burden Of Student Loan Debt

It’s not enough as a student earning good grades, graduating, and landing a job with a good salary. What makes it more difficult is the rising costs of education, in tuition fees, books and the cost of living during the years being in school. There is no question that the trends of college and university prices have rose steadily over that last decade. During the 2004-2005 academic year about $129 billion in financial aid was distributed to undergraduate and graduate students. In addition, these students borrowed almost $14 Billion dollars from non-federal sources to help finance their education according to the report Trends in Student Aid (2005) from the College Board association. With an adjustment to inflation the total financial aid given to undergraduate and graduate students has increased by almost 100% from 1994 to 2005.

Why have students been borrowing much more today?

There has been a widening gap between the cost of university and college tuition and aid in the form of grants causing students to borrow more. Many students look at taking students loans as a good investment because it allows them to complete their education with better odds of a getting a better job and life. Because Students are borrowing more and often taking out multiple student loans today, however, it could lead to financial burdens. This would delay things like buying a new home, car, getting married, and raising a family.

How can student loan consolidation help?

Also known as a federal consolidation loan, repays some or all of the outstanding eligible federal student loans and replaces the multiple payments that are made with one single payment. The payment terms can even be extended to make the payments more affordable. The interest rates are fixed rate for the entire term and is calculated as the weighted average interest rates of your consolidated loans rounded up to 1/8% not exceeding 8.25%.

Which student loans can be consolidated?

1. Federal and Federal Direct Stafford (subsidized and unsubsidized)
2. Federal and Federal Direct PLUS SLS (Supplementary Loans for Students)
3. Federal Perkins
4. Federal Nursing Student Loans (NSL)
5. Federal Health Education Assistance Loan (HEAL)
6. Federal Health Professional Student Loans (HPSL)
7. Health Professions Student Loans (HPSL) Loans for Disadvantaged Students (LDS)
8. Federal Insured Students Loans (FISL)

If a person has bad credit, can they still consolidate their student loans?

Under the federal student loan consolidation program, no credit checks are necessary, however, if any loans are in default, three consecutive payments must be made prior to consolidating the loans.

What lenders consolidate student loans?

The Internet is an excellent resource to compare student loan consolidation lenders rates and offers. It is just a matter to take some time and compare different incentives between lenders.

Lenders may offer added incentives to consolidate student loans. For example, depending on the balance of the current student loans, some lenders may offer a credit or an interest rate reduction if payments were made consecutively on time. Or, if a married couple has individual student loans and want to combine and consolidate their loans.

It should not be a strike against anyone requiring student loans to get through university or college nor having a delayed hardship when a person graduates and gets back into the work force.

Brad Jacobsen writes about student loan debt consolidation and you can read more articles, tips and helpful information including Free no obligation quotes at: www.ez-mortgage-quotes.com/consolidation+information+loan+student.htm http://www.ez-mortgage-quotes.com/consolidation+information+loan+student.htm

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4/24/2008

The parent’s role on the students’quest for federal loan assistance

A couple decides to get married and then proceeds to have children. Each one of their children will require sustenance, divertimento, and education. It is of this latter part than most parents will devote endless white nights trying to make the right decision and provide their offspring with the best possible education available.

Despite the fact that most basic education begins at home, when parents strive to teach the children the basic rules of moral, ethics and acceptable social behavior. As soon as they grow older and the natural anxiety of the children begins to overwhelm them with needs of exploring the world for themselves as well as their own need of a higher education, parents see themselves relinquished into the background and often shushed.

Even when shushing parents is a regular and quite standard situation amongst all half grown up children since the beginning of teen hood and way deep into adulthood parents should remain present along the way. At least until the child has finally finished his or her schooling and achieve a degree, diploma, certificate or whatever it is that his or her chosen profession issues to the fully prepared professional.

Of course, none of this is easy and it requires additional levels of patience both from the side of the child as from the side of the parent.

This is ever more so evident when the child reaches the high level of education requirements.

Most households realize that their children are already grown up when the need for the child to present his or her applications to the different universities comes. When they realize, in no low degree of horror, that even with all the warning of the years behind, they did not prepare and did not consider the possibility that the child would require them to enter a high-cost educational institution.

As a result, the child might perceive that his or her dreams of a successful and fruitful life have come crashing down and that there is no more hope to revive them. Even if this is not entirely true. In turn, the relationship between parents and children will grow tenser until it bursts in constant quarrels and discussions with the evident death.

The destruction of the family is not a laughing matter. Years of cruel and unbelievable events such as Columbine, Virginia Tech and the like have proved that family life is the angle stone on which most of society’s problems are emerged and counteracted.

11/20/2007

Not too late for spring semester

Last month we launched our "Ask the Expert" tool — and since then, your questions have been steadily rolling in. At first I was surprised by the number of inquiries we received this way. I thought the Student LoanDown community would use the comments section to ask questions — but I guess you take that section literally and use it for actual comments, not questions!

Nonetheless, I'm glad you're finding "Ask the Expert" useful. It's certainly useful for us bloggers because we learn exactly what kind of information you'd like more of — and then we can share it with the rest of our community.

So here's a question we received from a concerned parent about financial aid timing (certainly appropriate as spring semester is just a few months away):

My daughter is a freshman. We did not take out any loans for the first, fall, semester, but would like to take out one for the spring semester. Is it possible to get a Stafford or Perkins loan for the spring semester, or have we missed this cycle and have to wait for the fall of 2008?

And here's my response:

No, you haven't missed the cycle. (Whew!) If you haven't already completed the FAFSA Click here to learn about third-party website links (Free Application for Federal Student Aid), that's your first step. The 2007 FAFSA covers the 2007-2008 academic year through June 30, 2008, and will determine your daughter's eligibility for financial aid.

I'd suggest that you check with the financial aid office at your daughter's school. Low-interest Federal Perkins Loans Click here to learn about third-party website links are based on financial need and are awarded on a first-come, first-served basis, so those may not be available. But low-interest Federal Stafford Loans have both need-based and non-need-based components (subsidized and unsubsidized loans), and as long as your daughter is attending an eligible school at least half-time, this should still be an option for her.

One last thing: As a parent, if you're interested in borrowing to help your daughter pay for school, check out the Federal PLUS Loan for parents. It's also not based on financial need but does require a minimal credit check.

Warning on Tuition, Shift on Accreditation

If the Higher Education Act bill that House Democrats introduced late last week did not persuade college leaders that the issue of college prices is and will remain front and center on the federal policy agenda, the House education committee’s consideration of the legislation Wednesday should once and for all.

Lawmakers on the Education and Labor Committee did not complete their work on the measure (H.R. 4137) Wednesday, though they did pass several amendments and reject or withdraw numerous others (detailed below). But their hours of mostly bipartisan discussion about the legislation included warnings from members of both political parties that colleges will face continuing scrutiny of their spending and tuition prices and could face more federal intrusion into their operations — beyond the creation of federal “watch lists” that the bill in question would create — if they don’t get the problem under control.

Rep. Michael Castle (R-Del.) proposed an amendment that would have required colleges that appear on the “watch lists” to put in place procedures to cut their costs and slash their federal student aid funds by 10 percent a year if they do not meet certain benchmarks. Castle said he believed the committee’s bill would do “very good things” on the cost issue, but suggested that “more may need to be done.”

Castle ultimately withdrew his amendment, as aides said he had been planning to do all along. But the committee’s chairman, Rep. George Miller (D-Calif.), said he found Castle’s amendment to be “very tempting,” and acknowledged the Republican lawmaker’s point that “we haven’t done everything potentially available” to Congress to crack down on rising college costs.

Miller then issued a warning directly to college officials: “I hope the [higher education] community is listening closely on this,” he said, adding that the committee’s work on this bill “is not the end of the story.”

The issue of college prices and the need for colleges to rein them was raised on and off throughout the hours of debate, offering a rare bit of cohesion to a discussion that was, like the sprawling 747-page bill under consideration, all over the place. (An accounting of what was contained in the original bill can be found here.)

Perhaps the most significant development, which occurred late Wednesday evening after the hearing room had partially cleared out, involved the contentious topic of how student learning outcomes should be assessed in the accreditation process. The bill proposed by committee Democrats last week would give colleges and universities themselves the authority to define how to measure “success with respect to student achievement in relation to the institution’s mission.” That is in contrast to the Education Department’s push during last winter’s negotiated rule making session on accreditation to put that authority much more in the hands of the accrediting agencies. The original language in the House bill largely mirrored that in the Higher Education Act bill passed by the Senate this summer.

Wednesday evening, Rep. Robert Andrews (D-N.J.) — acting at the urging of regional and national accreditors, who reportedly felt that the bill’s language threatened to undermine their authority — introduced an amendment to strip the language that empowered each college to define student learning for itself. (Language in the Higher Education Act as it stands now is noncommittal about who has that authority.) With virtually no discussion, and a promise to bring forward replacement language in the coming days, Miller and the committee’s other leaders adopted Andrews’s amendment without dissent.

College leaders, who had fought the Education Department’s push, said they were blindsided by the Andrews amendment. They were furious, saying the shift would open the door to federal officials renewing their effort to compel to force colleges to measure and report more quantitative data about their success in educating students. The turnabout revealed anew a rift between accreditors and college leaders that surfaced during the accreditation negotiations.

“I’m shocked at the stupidity of the accreditors in opening up an issue that had been settled in a positive way,” said Becky Timmons, assistant vice president for government relations at the American Council on Education. Matt Owens, assistant director of federal relations at the Association of American Universities, said the change — should it stand — could be a deal breaker. “Removal of the provision seriously jeopardizes our ability to support the bill,” Owens said.

The panel considered several other amendments related to accreditation as well. It adopted one amendment that would require accrediting agencies to “respect” the missions of religiously affiliated institutions, which several civil rights groups opposed because they said it would make it easier for such institutions to discriminate on the basis of race or sexual orientation. It also embraced a proposal, offered by Rep. Pete Hoekstra (R-Mich.), that would allow the minority party in Congress to appoint some of the new members of the National Advisory Committee on Institutional Quality and Integrity, the panel that reviews accreditors and that the Higher Education Act renewal bill would reconfigure. (Currently the education secretary appoints all 15 members; the original House bill would give the Senate, the House and the Education Department five appointees each, while Hoekstra’s measure would give the Senate and House six each, with three appointed by each party.)

Rep. Thomas Petri (R-Wisc.) withdrew an amendment that would have allowed colleges, once they had been accredited by a federally recognized agency, to opt out of the re-accreditation process by submitting a slew of information about its performance and fiscal and other health to the federal government. (The Petri amendment was strikingly similar to proposals that have been made by the American Council of Trustees and Alumni, whose president, Anne D. Neal, happens to be married to the Congressman and a member of the Education Department’s accreditation advisory committee.) Another withdrawn amendment related to accreditation would have ended a requirement that accrediting agencies get approval from the U.S. Education Department when they seek to begin reviewing distance learning institutions.

In other areas, the House panel adopted amendments that would:

* Bar the Education Department from developing or implementing a federal “unit records” database, which would track information about students from elementary and secondary school through their entry into the work force. Many states have such systems, but private colleges (and many Republican lawmakers) have opposed the development of a national system, mostly on privacy grounds.
* Create a new assistant secretary position in the U.S. Education Department to oversee international education.
* Ease in several ways the requirements of a federal law that forces for-profit colleges to garner at least 10 percent of their revenues from sources other than the federal student aid programs. One change would allow the institutions to count institutional scholarships, or tuition discounts, in the 10 percent total; another would soften the potential penalties violators can face.
* Change how the Education Department calculates the “cohort” default rate for student loans.

Numerous other amendments were rejected or withdrawn by their authors. Some of those amendments would have:

* Required colleges that participate in the federal direct student loan program to process loans for students through banks or other lenders in the guaranteed loan program.
* Expressed the sense of Congress that students should not have their free speech rights infringed by faculty members or fellow students — a watered-down version, essentially, of David Horowitz’s Academic Bill of Rights.

The House panel will reconvene this morning to vote on a handful of amendments and approval of the overall bill.

— Doug Lederman
The original story and user comments can be viewed online at http://insidehighered.com/news/2007/11/15/hea.

11/14/2007

Lawmakers introduce Higher Education Act reauthorization bill

According to NCHelp.org, House Education and Labor Chairman George Miller (D-CA) and Representative Rubén Hinojosa (D-TX) introduced H.R. 4137 which is a five-year reauthorization bill for the Higher Education Act (HEA). The bill contains many provisions, including:

* Expand college access for low-income and minority students by increasing the maximum Pell Grant award to $9,000, allowing students to receive year-round Pell Grant scholarships, and strengthening college readiness and early awareness programs.
* Increase college aid and support programs for veterans and military families.
* Streamline the federal student financial aid application to make it easier for all eligible students to access financial aid.
o Create two-page EZ FAFSA form for students who qualify for simplified needs and auto-zero-EFC;
o Reduce the number of data elements on the FAFSA by a half;
o Require Education Department to work with the IRS to get income information for the FAFSA in order to simplify process.
* Require greatly increased reporting on how colleges spend their money and create “Higher Education Price Increase Watch Lists” of institutions that increase their tuitions above the average for their peer institutions.
* Make textbook costs more manageable for students.
* Give the Department of Education increased authority to regulate private student loans, increase loan disclosure requirements and increase requirements for lenders and institutions participating in preferred lender arrangements.
o Require schools using preferred lender lists to inform students and parents why they choose each lender on the list and their right to choose lenders no included on the list
o Federal student loan preferred lender lists would need to consist of three unaffiliated lenders and private lender lists would need to consist of two unaffiliated lenders.
* Require lenders, secondary markets, holders or guaranty agencies to provide free of charge and in a timely and effective manner, any student loan information pertaining to federal loans by an institution of higher education for a borrower who had previously attended the institution or by any third-party servicer working on behalf of that institution to prevent student loan defaults
* Call for a study of the feasibility of developing a National Electronic Student Loan Marketplace for federal and private loans.
* Increase Perkins Loan limits from $4,000 to $5,000 for undergraduates and $6,000 to $8,000 for graduate students.
* Provide public service loan forgiveness for service in areas of national need including: early childhood educators; nurses; foreign language specialists; librarians; child welfare workers; and speech-language pathologists.

Please visit NCHelp.org’s PDF file about this to get more details.

11/12/2007

Student loan crackdown bill offered in U.S. House

WASHINGTON, Nov 9 (Reuters) - A bill aimed at cleaning up misconduct in the U.S. student loan industry and encouraging colleges to restrain tuition inflation was introduced in the House of Representatives on Friday.

The legislation comes after a scandal earlier this year that revealed kickbacks and conflicts of interest among lenders and some colleges, embarrassing the $85 billion industry and drawing more attention to rising college costs.

"Today's students face far too many obstacles when trying to go to college: skyrocketing college prices; an absurdly confusing financial aid application; and a student loan industry overrun with conflicts of interest," said Rep. George Miller, chairman of the House Education and Labor Committee.

The bill from Miller, a California Democrat, would require colleges and lenders to adopt loan codes of conduct; give students more loan information; curtail aggressive loan marketing; and force colleges to report reasons for increasing tuition and plans for lowering costs.

In addition, it would shorten and simplify the long and confusing standard application form students must complete when applying for financial aid.

Legislation raising student grant funding and slashing government subsidies to lenders -- such as Sallie Mae (SLM.N: Quote, Profile , Research), Bank of America Corp (BAC.N: Quote, Profile , Research), JPMorgan Chase & Co (JPM.N: Quote, Profile , Research) and many others -- was enacted earlier this year. (Reporting by Kevin Drawbaugh, editing by Mark Porter)

11/11/2007

6 years on, gov’t finally agrees to a Loan Discharge Application for Spouses and Parents of 9/11 Victims

Today, the Department of Education released a Dear Colleague letter regarding “Approval of Loan Discharge Application for Spouses and Parents of September 11, 2001 Victims”

The summary is:
This letter announces the approval of a new loan discharge application for use by borrowers in the Federal Family Education Loan (FFEL), William D. Ford Federal Direct Loan (Direct Loan), and Federal Perkins Loan (Perkins Loan) programs who are the spouses or parents of eligible public servants or other eligible victims of the September 11, 2001 terrorist attacks.

The whole letter is here:

Publication Date: November 9, 2007

DCL ID: GEN-07-08
FP-07-10
CB-07-15

Subject: Approval of Loan Discharge Application for Spouses and Parents of September 11, 2001 Victims

Summary: This letter announces the approval of a new loan discharge application for use by borrowers in the Federal Family Education Loan (FFEL), William D. Ford Federal Direct Loan (Direct Loan), and Federal Perkins Loan (Perkins Loan) programs who are the spouses or parents of eligible public servants or other eligible victims of the September 11, 2001 terrorist attacks.

Posted on 11-09-2007

Dear Colleague:

As we previously announced in DCL GEN-06-21, the Third Higher Education Extension Act of 2006 (the THEEA), Public Law 109-292, authorized the discharge of the outstanding balance of certain FFEL, Direct Loan, and Perkins Loan program loans made to the spouses or parents of eligible public servants and other eligible victims of the September 11, 2001 terrorist attacks. Interim final regulations implementing this new loan discharge provision were published in the Federal Register on December 28, 2006 (71 FR 78075). Final regulations were published on September 28, 2007 (72 FR 55049).

The loan discharge benefit created by the THEEA is available only for FFEL, Direct Loan, and Perkins Loan program loans on which amounts were owed on September 11, 2001, and on which amounts are still owed on the date the discharge is requested. The THEEA does not authorize the refunding of any payments that a borrower made on a loan prior to the loan discharge date.

The Office of Management and Budget (OMB) has approved a new loan discharge application under OMB No. 1845-0079 (Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims) to be used by eligible FFEL, Direct Loan, and Perkins Loan borrowers to apply for the new loan discharge.

Implementation of the New Loan Discharge Application

The attached Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims may be made available to borrowers for immediate use. FFEL Program participants and Perkins Loan schools must make the new loan discharge application available to borrowers no later than January 31, 2008. Requests for the new loan discharge made by borrowers using other means that were in place before January 31, 2008 may continue to be processed after that date.

Printing Instructions and Imaging Technology

The attached form must be printed with black ink on white paper. The typeface, point size, and general presentation of the form may not be changed from the OMB-approved form. No changes to, deletions from, or additions to the approved language on the form are allowed, except that the order of the loan program names that appear throughout the form (Federal Family Education Loan Program, William D. Ford Federal Direct Loan Program, and Federal Perkins Loan Program) may be changed depending on the program for which the form is being used. The blank spaces at the top, bottom, or sides of the form may be used for bar coding.

To accommodate imaging technology, the instructions tell the borrower to complete and sign the form in ink. However, a pencil signature does not invalidate the form.

Obtaining Copies for Reproduction

The Loan Discharge Application: Spouses and Parents of September 11, 2001 Victims is available in PDF and Microsoft Word format as attachments to this letter. In addition, the form is also available on the National Council of Higher Education Loan Programs (NCHELP) web site at www.nchelp.org.

Sincerely,

Jeff Baker, Director
Policy Liaison and Implementation
Federal Student Aid

Attachments/Enclosures:

GEN-07-08: Loan Discharge Application in Microsoft Word, 216KB, 4 pages

GEN-07-08: Loan Discharge Application in PDF Format, 87KB, 4 pages

11/10/2007

Kiplingers recommends federal loans over private loans

Kiplinger’s had a recent article pointing out the benefits of federal loans like Stafford and PLUS over the private loans that have flooded the market. It also discusses how to deal with any private loans you may have. Here are some excerpts:



Outside the federal student-loan program, your options are limited. Federal Stafford loans offer more-favorable repayment terms than private loans, plus more opportunities to have loans forgiven.



your best bet is to shop around for the best terms you can find on a private-loan consolidation (compare programs at SimpleTuition.com and FinAid.org). If your credit score has improved significantly since you took out the loans, you may be able to get a better rate.

Consolidating also lets you stretch out the term of the loan, which may lower your monthly payments. You’ll pay more interest over time, but the breather could get you over a hump. And you can pay ahead on your loans as your income rises, as long as there are no prepayment penalties.

Some occupations forgive loans as a recruiting tool. And if you meet income requirements, you can deduct up to $2,500 per year in interest on any loans used for higher education.

Once you’ve arranged the best terms you can, you’ll just have to bite the bullet.

Leisa Aiken, a financial adviser in Chicago, recommends that clients with significant student-loan debt go on a crash program to pay off high-rate debt as soon as possible, even if it means continuing to live like a student. Move back home with Mom and Dad, get rid of the car, take a second job, and put the extra cash toward your most expensive loans. Low-interest loans can wait. “Paying $150 a month on a 4% loan isn’t all bad,” says Aiken. “It’s more of a nuisance.”

7/10/2007

salliemae Federal Parent PLUS loans

Federal Parent PLUS loans

The federally sponsored Parent PLUS loan is a low interest student loan for parents of undergraduate, dependent students. With a Parent PLUS loan, families can fund the entire cost of a child's education (less other financial aid).

Eligibility

  • You may apply for a Parent PLUS loan to pay for the higher-education-related expenses of an undergraduate, dependent child. Parents of independent students are not eligible.
  • You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
  • A credit check is required.

Features

  • Many Sallie Mae lenders offer borrower benefits on Parent PLUS loans that can save you money in repayment.
  • Flexible repayment options are available.
  • Postpone repayment for up to 60 months including while your dependent child is in school.
  • You can manage your account online 24/7.
  • You get life-of-loan servicing from Sallie Mae.
  • There is no prepayment penalty.
  • There are no income or collateral requirements.
  • Parent PLUS borrowers may use Sallie Mae's PLUS Success, a free, confidential credit counseling service. Sallie Mae PLUS Success credit specialists work with parents to resolve credit issues so that they may become PLUS eligible. Parents who are not PLUS eligible on the basis of their own credit may obtain a creditworthy endorser.
  • Interest may be tax-deductible.
  • We have an easy online application and approval process with an instant credit decision.

Loan terms

Loan limit

You may borrow up to the full cost of your child's education less other aid received.

Interest rate

The interest rate for Parent PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5%.

Fees

    There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged. Some lenders and guarantors who work with Sallie Mae pay all or a portion of the default fee on behalf of Parent PLUS borrowers whose PLUS loans are guaranteed July 1, 2007–June 30, 2008.

    Repayment

    • Standard repayment: You make both principal and interest payments each month up to a 10-year repayment term. This plan has the lowest total interest cost.
    • Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with standard repayment.
    • Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment.
    • Extended repayment: If you have high student loan debt, you may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with standard repayment.
    • Student loan consolidation: You combine your eligible loans into a new loan with a single monthly payment and a fixed interest rate. While student loan consolidation can substantially lower your monthly payments, it will generally result in a higher total loan cost.

    Legal

    • You are responsible for all interest that accrues on the Parent PLUS loan. Unpaid interest will be capitalized (added to the loan principal) and you will therefore pay interest on a higher amount.
    • The first payment is due within 60 days after the Parent PLUS loan is fully disbursed.