That’s right - you can’t hide from it anymore. If you graduated this past spring, the chances are your grace period is over and you have to start paying back your student loans. This is not the end of the world for you, just the beginning of a long relationship with your loan servicer. (Technically, the relationship started 4 years ago…but who’s counting)
You have some options. First and foremost, examine your monthly budget, and include your new student loan payments. If you can afford to make the payments, don’t defer or put your loans into forbearance just to save money. When you put your loans into forbearance or deferment, interest will continue to collect on your none-subsidized federal loans, which gets capitalized once you go back into repayment. This basically means that your total payback amount will increase. Not to mention, deferment and forbearance are intended to be used during financial hardships. If you use them up now when you can afford to pay, you won’t have them in the future when you may actually need them.
Still, you can afford the monthly payments, but now you have much less cash lying around. Consider consolidation - you can cut your monthly payment nearly in half. And, there is no penalty for extra or early repayment. So, when you claw your way to the top of the corporate ladder, and land that high paying fluff job, you can payback your remaining loan balance without being penalized.
Finally, don’t forget to consolidate your private student loans. They’re probably going into repayment right about now as well. And if you have a lot of private student loans like me, then consolidating those will also help that monthly budget stay fit. Just like federal consolidation, private consolidation will combine all of your private student debt and lower your monthly payment, without any penalties for extra or early repayment.
Showing posts with label Student Loan Repayment. Show all posts
Showing posts with label Student Loan Repayment. Show all posts
11/15/2007
11/13/2007
Student Loan Repayment Begins
That’s right - you can’t hide from it anymore. If you graduated this past spring, the chances are your grace period is over and you have to start paying back your student loans. This is not the end of the world for you, just the beginning of a long relationship with your loan servicer. (Technically, the relationship started 4 years ago…but who’s counting)
You have some options. First and foremost, examine your monthly budget, and include your new student loan payments. If you can afford to make the payments, don’t defer or put your loans into forbearance just to save money. When you put your loans into forbearance or deferment, interest will continue to collect on your none-subsidized federal loans, which gets capitalized once you go back into repayment. This basically means that your total payback amount will increase. Not to mention, deferment and forbearance are intended to be used during financial hardships. If you use them up now when you can afford to pay, you won’t have them in the future when you may actually need them.
Still, you can afford the monthly payments, but now you have much less cash lying around. Consider consolidation - you can cut your monthly payment nearly in half. And, there is no penalty for extra or early repayment. So, when you claw your way to the top of the corporate ladder, and land that high paying fluff job, you can payback your remaining loan balance without being penalized.
Finally, don’t forget to consolidate your private student loans. They’re probably going into repayment right about now as well. And if you have a lot of private student loans like me, then consolidating those will also help that monthly budget stay fit. Just like federal consolidation, private consolidation will combine all of your private student debt and lower your monthly payment, without any penalties for extra or early repayment.
You have some options. First and foremost, examine your monthly budget, and include your new student loan payments. If you can afford to make the payments, don’t defer or put your loans into forbearance just to save money. When you put your loans into forbearance or deferment, interest will continue to collect on your none-subsidized federal loans, which gets capitalized once you go back into repayment. This basically means that your total payback amount will increase. Not to mention, deferment and forbearance are intended to be used during financial hardships. If you use them up now when you can afford to pay, you won’t have them in the future when you may actually need them.
Still, you can afford the monthly payments, but now you have much less cash lying around. Consider consolidation - you can cut your monthly payment nearly in half. And, there is no penalty for extra or early repayment. So, when you claw your way to the top of the corporate ladder, and land that high paying fluff job, you can payback your remaining loan balance without being penalized.
Finally, don’t forget to consolidate your private student loans. They’re probably going into repayment right about now as well. And if you have a lot of private student loans like me, then consolidating those will also help that monthly budget stay fit. Just like federal consolidation, private consolidation will combine all of your private student debt and lower your monthly payment, without any penalties for extra or early repayment.
11/12/2007
Recent Graduates Having Trouble Making Their Student Loan Payments Should Consider Looking Into Their Deferment and Forbearance Options
If you graduated in May with federal Stafford student loans, you may be facing the prospect of adjusting your budget to accommodate new monthly student loan payments as your six-month grace periods end sometime this month. If you’re still doing temp work, looking for a job, or if you just got stuck with a lower-than-expected entry-level salary, it’s entirely possible that you’re not sure how you’re going to come up with the money you’re going to need each month to a meet a new monthly expense from student loans going into repayment.
The main thing is don’t be embarrassed! A lot of student loan borrowers go through periods when they’re having trouble making their student loan payments. Your federal student loans come with deferment and forbearance benefits that can help you through those times when money’s a little short.
If you’re a recent graduate—or any parent or student loan borrower—who’s having trouble making your student loan payments each month, NextStudent, a leading Phoenix-based education funding company, urges you to contact your lenders about your deferment and forbearance options, which allow you to temporarily reduce or postpone your student loan payments without compromising your credit score or defaulting on you student loans.
Deferment
Deferment allows you to temporarily stop making payments on your student loans. If you’re unemployed or experiencing economic hardship, you may be able to request a deferment, for up to a year at a time, up to a total of three years over the life of the student loan. You must contact your lender to request an unemployment or hardship deferment, and you may need to complete a deferment request form.
Forbearance
If you’re unemployed or experiencing economic hardship, you may be able to request a forbearance, which allows you to temporarily reduce or postpone payments on your student loans. You must contact your lender to request a hardship forbearance, and you typically need to complete a forbearance request form. You may also need to submit supporting documentation, depending on the nature of your request.
Generally, a lender can grant a forbearance for up to a year at a time. Unlike unemployment or economic hardship deferments, there is no three-year cumulative limit on discretionary forbearance periods granted due to financial hardship.
Interest Charges on Student Loans in Deferment or Forbearance
Interest charges continue to accrue on your student loans even while they’re in a deferment or forbearance period. The government will pay the interest on any subsidized student loans (such as Perkins or subsidized Stafford loans) that you have in deferment, but you’ll be responsible for the interest on your unsubsidized student loans (such as Grad PLUS or unsubsidized Stafford loans) that are in deferment and on any student loans, whether subsidized or unsubsidized, that are in forbearance.
Any unpaid interest that accrues during a deferment or forbearance period will be capitalized and added to your principal student loan balance for you to repay once repayment resumes. To avoid having accrued interest added to your principal student loan balance, you can always choose to make interest payments during deferment or forbearance periods in which your payments are postponed.
Student Loans Eligible for Deferment or Forbearance
Most federal student loans are eligible for deferment and forbearance benefits. This includes:
1. Perkins loans
2. Stafford loans
3. PLUS loans
4. Grad PLUS loans
5. Federal Consolidation Loans
If you’re already taken advantage of the federal student loan consolidation program to consolidate Stafford loans or any other federal student loans, you still have deferment and forbearance benefits available to you.
Some private student loans may also offer deferment or forbearance periods—you should contact your private student loan lender.
Make sure you contact your lender if you’re considering an economic hardship deferment or forbearance. Hardship deferments and discretionary forbearances are typically not automatic. You may be required to fill out a deferment or forbearance request form and submit supporting documentation.
More Information on Deferment, Forbearance, and Student Loan Repayment Options
If you’re looking for more in-depth information on deferment and forbearance benefits, or if you have questions about your student loan repayment options, check out our free online guides to deferment and forbearance benefits and to repayment terms and options for federal student loans. If you still have questions, NextStudent’s knowledgeable Education Finance Advisors are always happy to help — just give us a call!
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at www.nextstudent.com.
The main thing is don’t be embarrassed! A lot of student loan borrowers go through periods when they’re having trouble making their student loan payments. Your federal student loans come with deferment and forbearance benefits that can help you through those times when money’s a little short.
If you’re a recent graduate—or any parent or student loan borrower—who’s having trouble making your student loan payments each month, NextStudent, a leading Phoenix-based education funding company, urges you to contact your lenders about your deferment and forbearance options, which allow you to temporarily reduce or postpone your student loan payments without compromising your credit score or defaulting on you student loans.
Deferment
Deferment allows you to temporarily stop making payments on your student loans. If you’re unemployed or experiencing economic hardship, you may be able to request a deferment, for up to a year at a time, up to a total of three years over the life of the student loan. You must contact your lender to request an unemployment or hardship deferment, and you may need to complete a deferment request form.
Forbearance
If you’re unemployed or experiencing economic hardship, you may be able to request a forbearance, which allows you to temporarily reduce or postpone payments on your student loans. You must contact your lender to request a hardship forbearance, and you typically need to complete a forbearance request form. You may also need to submit supporting documentation, depending on the nature of your request.
Generally, a lender can grant a forbearance for up to a year at a time. Unlike unemployment or economic hardship deferments, there is no three-year cumulative limit on discretionary forbearance periods granted due to financial hardship.
Interest Charges on Student Loans in Deferment or Forbearance
Interest charges continue to accrue on your student loans even while they’re in a deferment or forbearance period. The government will pay the interest on any subsidized student loans (such as Perkins or subsidized Stafford loans) that you have in deferment, but you’ll be responsible for the interest on your unsubsidized student loans (such as Grad PLUS or unsubsidized Stafford loans) that are in deferment and on any student loans, whether subsidized or unsubsidized, that are in forbearance.
Any unpaid interest that accrues during a deferment or forbearance period will be capitalized and added to your principal student loan balance for you to repay once repayment resumes. To avoid having accrued interest added to your principal student loan balance, you can always choose to make interest payments during deferment or forbearance periods in which your payments are postponed.
Student Loans Eligible for Deferment or Forbearance
Most federal student loans are eligible for deferment and forbearance benefits. This includes:
1. Perkins loans
2. Stafford loans
3. PLUS loans
4. Grad PLUS loans
5. Federal Consolidation Loans
If you’re already taken advantage of the federal student loan consolidation program to consolidate Stafford loans or any other federal student loans, you still have deferment and forbearance benefits available to you.
Some private student loans may also offer deferment or forbearance periods—you should contact your private student loan lender.
Make sure you contact your lender if you’re considering an economic hardship deferment or forbearance. Hardship deferments and discretionary forbearances are typically not automatic. You may be required to fill out a deferment or forbearance request form and submit supporting documentation.
More Information on Deferment, Forbearance, and Student Loan Repayment Options
If you’re looking for more in-depth information on deferment and forbearance benefits, or if you have questions about your student loan repayment options, check out our free online guides to deferment and forbearance benefits and to repayment terms and options for federal student loans. If you still have questions, NextStudent’s knowledgeable Education Finance Advisors are always happy to help — just give us a call!
NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at www.nextstudent.com.
7/28/2007
Postponing payments - Apply for forbearance - salliemae
Postponing payments
Understanding forbearance
Forbearance can help you avoid delinquency and default if you're facing temporary financial difficulty.
Forbearance lets you suspend or reduce your payments under certain circumstances and for specified periods of up to one year at a time.
During forbearance, you will receive quarterly interest statements and have the option to pay the accrued interest. If you don't, any unpaid accrued interest will be capitalized.
Eligibility
For detailed information on your forbearance options, to see if you are eligible, and to apply, log in to your Manage Your LoansSM account. Select Postpone Payments, learn if you're eligible, and apply for forbearance.
Forbearance results in higher loan costs overall. You may want to look into deferment or a different payment plan.
Postponing payments - Request deferment - salliemae
Postponing payments
Understanding deferment
Deferment lets you temporarily suspend making loan payments. You may be granted deferment on your loan for a variety of reasons.
Deferment can be authorized for
- economic hardship,
- unemployment,
- military deployment,
- enrollment in school,
- internship,
- national service, and
- similar situations.
You are responsible for paying your education debt even when granted deferment. Deferment is temporary and limited to specified time frames.
If you've already had one deferment, you may be eligible for the same type again. In other cases, you may have exceeded the time limit on a particular deferment and may no longer be eligible to apply for that same type.
Eligible loans
- Stafford loans
- Parent PLUS loans
- Graduate PLUS loans
- Federal consolidation loans
For subsidized Stafford loans, the federal government pays the interest during deferment. For unsubsidized loans (including unsubsidized Stafford, Graduate PLUS, and Parent PLUS), the interest accrues and is capitalized, and you are responsible for paying it.
Most private loan deferment eligibility is based on loan type.
Log in to Manage Your LoansSM and select Postpone Payments to see if you're eligible and to apply for deferment.
Paying loans electronically - salliemae
Paying loans electronically
Having trouble remembering the payment due date on your student loan? Always one stamp short? Make things easier on yourself: Pay your student loans by automatic debit or online billing.
Automatic debit
Sallie Mae’s automatic debit is the most convenient way to make your education loan payments on time!
There are no checks to write, no stamps to buy, and no late payments. Your monthly education loan payment is automatically deducted from your checking or savings account.
Log in to Manage Your LoansSM to sign up for automatic debit and take 0.25% off the interest rate on eligible loans.
Loans eligible for the automatic debit benefit
Loans taken through certain Sallie Mae lenders are eligible for the automatic debit interest rate reduction—Direct RepaySM—and must be owned and serviced by Sallie Mae or owned by Sallie Mae and serviced by a participating servicer.
Your savings through Direct Repay is available on the following loans:
- Stafford loans first disbursed through June 30, 2002.
- PLUS loans first disbursed through June 30, 2008.
- MBA LOANS® Private LoanSM (formerly MBA LOANS® Business Education LoanSM and Tuition Loan Program [TLP] LoanSM), LAWLOANS® Private LoanSM and Bar Study Loan® (formerly LAWLOANS® Law Student LoanSM), and Signature Student loans® first disbursed through May 31, 2002.
- MEDLOANS Alternative Loan Program (ALP) loans first disbursed April 27, 1999–May 31, 2007.
- MEDLOANS MEDEX loans first disbursed July 1, 1995–July 31, 2003.
- SMART LOAN® Accounts applied for before February 1, 1999. Also available on SMART LOAN Accounts disbursed on or after July 1, 2002. To be eligible for this benefit, your initial consolidation balance must be at least $7,500.
Sallie Mae reserves the right to modify or discontinue loan programs at any time without notice. Other terms and conditions apply.
Monthly online billing
With online billing, you can submit a one-time payment, schedule future payments, and receive monthly payment reminders by email. Log in to Manage Your Loans to sign up for online billing on eligible loans.
Upromise Loan LinkSM
Student and parent borrowers who join Upromise® can link their Sallie Mae® loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae-serviced student loans.
Upromise members can turn everyday spending into savings for education by shopping with participating companies who contribute a portion of their qualified spending into their Upromise account. Once borrowers become Upromise members, they can invite family and friends to join and contribute their rewards to the borrower’s Upromise account to increase savings. Simply go to www.salliemae.com/
upromise and enroll today.
Cutting costs by prepaying - salliemae
Cutting costs by prepaying
All federally sponsored education loans and most private loans let you pay off some of your loan—even the entire amount—before payment is due without penalty.
If you have some money left over each month, instead of spending it, why don't you pay down your student loan? This is a sure way to reduce the total cost of the loan.
Any extra payments you make are applied to the principal of the loan, after the accrued interest and any outstanding fees (if applicable) are satisfied. If you reduce your principal—even by a little—you reduce the amount of interest you have to pay over the life of your loan.
Are you thinking of paying off your loan entirely?
Learn the full balance (accounting for all accrued interest) from Manage Your LoansSM first.
Submitting extra payments is easy
Just log in to your Manage Your LoansSM account to make one-time payments, schedule future payments, or learn your balance.
Pay down your loan with Upromise
Another way to pay down your loan is through Upromise Loan LinkSM. When you join Upromise® you can link your Sallie Mae® loan account to your Upromise account and use your Upromise rewards to help pay down your eligible Sallie Mae-serviced student loans. Enroll today at www.salliemae.com/upromise.
Choosing a repayment plan - salliemae
Choosing a repayment plan
When you start making payments on a new student loan, you're automatically signed up for standard repayment. But you can choose other payment options.
See which repayment option best meets your needs.
Standard repayment
Principal and interest payments are due each month throughout the loan repayment term.
Graduated repayment
Payments are lower at the beginning of repayment and step up at specified periods and in specified amounts over the term of the loan.
Income-sensitive repayment
Monthly payments are based on a percentage of the borrower's monthly income for Stafford, PLUS, and SMART LOAN® (federal consolidation) borrowers.
Extended repayment
Eligible borrowers receive payment relief through a lengthened repayment term of up to 25 years.
Student loan consolidation
Student loan consolidation is an important debt management tool that allows borrowers to bundle existing loans into one new loan, providing both convenience and lower monthly payments. There are two types of student loan consolidation: federal student loan consolidation and private student loan consolidation.
Serialization
Sallie Mae purchases a borrower's loans held by other Federal Family Education Loan Program (FFELP) lenders or institutions and services them in one account with the borrower's other Sallie Mae-owned loans. Borrowers make one monthly payment and retain the original terms and interest rates on their loans.
Use Manage Your LoansSM to review your account, keep your personal information current, make payments, and more. Get more information from your account—log in today.
salliemae-Estimating monthly payments
Estimating monthly payments
Do you want to lower the monthly payments on your loans? Or are you more interested in keeping your interest payments down?
Monthly payments
How you choose to pay back your student loan will affect how much you pay each month and how much you pay over the life of your loan. The repayment plan you choose matters.
Use Sallie Mae®'s Loan repayment calculator to find out how much your monthly payments and interest could be under different repayment plans.
This calculator estimates repayment amounts for Stafford and PLUS loans that have not been consolidated.
To estimate payments under a federal consolidation loan, use Sallie Mae’s Loan consolidation calculator.
7/01/2007
Graduate Loan Repayment Loan Counseling Tools
Loan Counseling Tools
Studies have shown that the amount of student loan and credit card debt is growing among college students. To address this issue, schools partnered with lenders to develop a battery debt management and counseling applications to help students better understand their credit situation. Federal loan regulations now require borrowers to complete minimum Entrance Counseling upon the student's entry to school and Exit Counseling, after the borrower graduates, withdraws or "exits" from the school.
Online Entrance Counseling: To provide schools electronic options to students completing Entrance Counseling, several lenders have created Internet based applications. These applications guide a student through a series of informational pages, provide worksheets and other interactive tools and sometimes have a question & answer component. When the student completes the application, record of the student's participation in the session is forwarded to the school.
Online Exit Counseling: Similar to entrance counseling, exit counseling applications allow a borrower to plan for the imminent student loan repayment using online worksheets and calculators. Also, because exit counseling requires schools to collect borrower address and reference information, borrowers must be prepared with this information and must provide this information in the online exit session.
General debt management tools: Several companies offer student loan management tutorials and interactive sessions over the Internet. These sites provide a wide array of information and, using Internet technology, incorporate online calculators, worksheets and checklists for borrowers. Further, these applications also provide tips, tools and reference materials to help borrowers successfully manage student loan indebtedness.
The following list provides a sample of these Debt Management applications. We hope you find these tools helpful.
Borrowing Tutorials and Online Worksheets:
Nellie Mae Entrance Counseling
Nellie Mae Exit Counseling
Chase Loan Counseling
EDWise
or check your schools financial aid website
Graduate Loan Repayment Default Avoidance
Default Avoidance
It is very easy for student-borrowers to over extend themselves and experience difficulties managing repayment obligations. There are, however, many resources and tools that can help you make sensible borrowing decisions or overcome problems you may be experiencing. Here's some advice:
Before You Borrow:
- Make sure you really need the loan you are considering. Could you meet the expenses by working extra hours or from another source?
- Think about the "big picture" effects of your borrowing. How much will you have to borrow in order to graduate (your school's financial aid or admissions office should help with averages)? Calculate the monthly payment for these loans.
- Consider how much do you intend to earn once you enter the work force? Your student loan payments should be less than 15% of your salary. Be Realistic!
- Stay on top of your expenses! Know where you spend your money and be on the lookout for ways to save.
- Try public transportation rather than owning a car
- Share a room with roommates instead of living alone
- Eat at home rather than eating out
- Use e-mail to cut down on long distance phone calls
Managing Existing Obligations:
- If you're having trouble meeting your student loan payments, contact your loan servicer. You may qualify for a deferment, forbearance, or repayment alternative that is more affordable.
- Consolidation can help by extending your loan's repayment term beyond the standard ten years. While this will increase the total interest charges, the monthly payments will become more manageable.
- Watch your expenses! Just as you need to be cautious when you're in school, you need to be aware of your expenses after you leave school.
- Limit credit card usage to absolute necessities. Remember you'll pay more for every charged item because of the credit card's finance charges.
- If you must have credit cards, shop around for low interest rates or call existing credit card providers and ask them for a lower rate.
Default Avoidance information from DOE
Graduate Loan Repayment Deferment
Deferment
Your deferment options may vary, depending on what kind of loans you have.
Stafford and Perkins loans:
Principal and interest payments may be deferred while the borrower is:
- Attending school at least halftime.
- Unemployed (up to three years).
- Studying in an approved graduate fellowship or rehabilitation program for the disabled.
- Experiencing economic hardship (up to three years).
Parent Loan for Undergraduate Students (PLUS)
PLUS deferment options are based on the parent borrower's eligibility--for example, if the parent is unemployed, not the student on whose behalf the parent took out the loan. Principal and interest payments may be deferred while the parent borrower is:
- Attending school at least halftime.
- Unemployed (up to three years).
- Studying in an approved graduate fellowship or rehabilitation program for the disabled.
- Experiencing economic hardship (up to three years).
Alternative Loan:
Principal and interest payments may be deferred while the borrower is continuously enrolled up to a maximum of 48 months. Additional deferments are available based on your grade level, program of study and specific loan program. Read your application and promissory note carefully for details. You may also want to consider a forbearance for your alternative loan.
Forbearance:
If the alternative loan borrower is unable to make regular principal and interest payments, the lender may accept interest-only payments or the student may be able to defer payments with a capitalized interest forbearance. A forbearance may be granted at the lender's discretion, but only in accordance with preset guidelines. If at any time during the repayment period a student is unable to make a required payment, they should immediately contact the servicer to seek advice on obtaining a temporary cessation of payments. A forbearance will grant an extension of the principal and interest of the loan. Interest charges will be capitalized (added onto the principal of the loan) once the student begins repaying again.
Forbearance may be granted for the following reasons:
- Unemployment
- Partial Disability
- Other documented hardship
Eligibility for interest subsidy during deferment:
Consolidation loan applications received on or after January 1, 1993, and before August 10, 1993. Applications received on or after August 10, 1993, and before October 7, 1998, if the consolidation loan includes only subsidized Federal Stafford Loans, subsidized Federal Consolidation Loans or Federally Insured Student Loans. Applications received on or after October 7, 1998, on the portion of the consolidation loan that represents subsidized Federal Stafford, subsidized Federal Consolidation Loans or Federally Insured Student Loans.
Student Loan Forgiveness or Cancellation
Student Loan Forgiveness or Cancellation
Check your account
You can view most of your federal financial aid history, including Stafford loans, in the National Student Loan Clearinghouse System if you have a Personal Identification Number (PIN). If you don't have one, you can request one at the PIN site.
For Stafford Loans, you can usually get the most recent account information and make changes on-line at your lender's Web site. If your loan was made through the Direct Loan Program, you can get account information and make changes at the DL Servicing Web site.
Consider consolidation, forgiveness or cancellation options
If you're interested in consolidating your loans, visit the StudentLoanConsolidator.com or DL Consolidation site (for Direct Loans) or contact one of the holders of your Stafford Loans (if your loans were made through a private lender).
If you're teaching in a low-income school or a teacher shortage area, you may be eligible to defer payment on your loan or to cancel portions of the loan. Our Options for Teachers Web page explains who is eligible for deferment/cancellation and provides a list of low-income schools and shortage areas.
If you are a childcare provider and borrowed a Stafford loan on or after October 7, 1998 as a "new borrower," you may be eligible to have a portion of your loan cancelled. Click Here for more information.
The Department of Health and Human Services offers the Nursing Education Loan Repayment Program for nurses who serve in eligible facilities in areas experiencing a shortage of nurses.
Find out how to resolve closed school problems or defaulted loans
Check our Closed School Information to find out what you can do if you received a loan at a school that closed.
If your loan is in default, our Defaulted Student Loans section can help you how to get out of default.
The SFA Ombudsman assists borrowers in resolving difficult financial aid problems that they have not been able to resolve.
For student loan consolidation, go to:
StudentLoanConsolidator.com
Graduate Loan Incentives
Loan Incentives
Incentives are sometimes offered to students who repay their loans on time. For information on repayment incentives and their availability contact the Direct Loan Servicing Center for Direct Loans. If you have a FFEL, you must contact your lender for particular information about the types of incentive plans in place. The most common plans are:
- On time Payments - If you pay your first 48 loan payments (for actual number of payments please see your lender) on time then they will lower your interest rate. This could be as much as 2% or 3%.
- Automatic Repayment - many lenders will offer a interest rate reduction if you set up automatic payments to your account each month via EFT.
- Rebate - Certain lenders will refund the origination fees if student pay the first 24 months of their loan on-time
- Some lenders may offer a zero guarantee fee for all Federal Family Education Loan Program (FFELP) loans. As for your savings, on a $10,000 loan - you will save $100 at disbursement and much more over the life of the loan! Federal law allows guarantors to collect up to 1 percent from each education loan they guarantee. Guarantors place those fees in a federally owned reserve account and may use those funds if a borrower defaults on a loan. Guarantors also may use those fees to pay for their default-prevention efforts.
Check with your lender to find out specific incentives they offer. If you are not sure who your lender is, then please click here. Also, please visit Edvisors.com Financial Aid Listings for more information.
Graduate Student LoanRepayment Options
Repayment Options
You have a choice of repayment options, depending on the loan program you are applying for, so you can choose the one that best meets your individual needs. We will also let borrowers make payments electronically (and perhaps save money) and reward customers for paying on time.
Standard repayment:
Principal and interest payments are due each month throughout the loan repayment term.
Graduated repayment:
Payments are smaller at the beginning of repayment and step up at specified periods and in specified amounts over the term of the loan.
Income-based repayment:
Monthly loan payments are based on a percentage of the borrower's monthly gross income. StaffordLoan.com offers an income-sensitive repayment plan.
Extended Repayment:
Extended Repayment provides eligible Federal Stafford, Federal PLUS and Alternative loan/Federal Consolidation loan borrowers with payment relief through a lengthened repayment term of up to 25 years.
Serialization and consolidation:
With serialization, the loan holder purchases your loans held by other institutions and services them in one account. You make one monthly payment but retain the original terms and interest rate. With our consolidation program, the borrower may refinance multiple loans. The original loans are paid in full and a new loan for the combined balance is originated, for a new term, often at a new interest rate.
Graduate Student Loan Repayment from Gradloans
Graduate Student Loan Repayment
Are you thinking about how you are going to pay for your education and considering a loan? Already have a student loan and wondering about your Repayment Options? It is important to pay your loan on time. To help you meet your obligations while providing some flexibility for those who need it, we have developed our programs with you in mind.
Considering how to save money after graduation? Take a look at some of the rewards and incentives of consolidation offered to students who pay their loan on time and sign up for direct deposit programs in the incentives and benefits section.
Can't make a payment because you can't find a job, are going back to school, or some other reason, consider an additional deferment allowing you to put off payments for a specific period of time.
Worried about having multiple student loan payments after college? Loan consolidation may be an option for you!
If your questions aren't answered here, send us an email. We will be happy to answer more specific questions.
For student loan consolidation, go to: Student Loan Consolidation Center
We provide detailed information on our student loan programs:
- The Federal Stafford Loan for Graduate Study
- Our Alternative Loan for Graduate Students - Act Alternative Loan for Grads
- Consolidation Loans for Graduates
- Start Managing your Credit
For those of you in specific fields of study, we have developed specific programs to meet your specific need. Please visit:
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