Office Hours:
Monday-Tuesday
8:30 a.m. - 4 p.m.
Wednesday
10:00 a.m. - 4 p.m.
Thursday - Friday
8:30 a.m. - 4 p.m.

Paying Back Your Student Debt

As your college career comes to a close, you are probably celebrating your accomplishments, saying good-bye to friends, and searching for your first real job. But what about all of that money you borrowed to get through school? Student loan debt is real debt and must be taken seriously. So, before you leave school there are some important things to consider and understand.

National Student Loan Data System (NSLDS) for Students

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data. Click HERE for more information about NSLDS!

What is Exit Counseling?

Before you leave school, the Financial Aid Office will provide you with directions on how to complete your required Exit Loan Counseling Interview online. The counseling session provides information about how to manage your student loans after college.

Some of the valuable information you will receive upon completion of your Exit Counseling Interview:

Why you need to stay in touch with your loan lender.
Repayment options (discussed below).
Calculator to determine how much your monthly payment will be.
When repayment begins.
What to do if you have trouble making payments on your loans.
Combining your loans.
Loan cancellation and forgiveness.
Consequences of delinquency and default.
Tips for successful repayment of your student loans.
How to build good credit.
How to start saving money.
Where to request your credit report from.
Complete a personal budget.

When does repayment start on my loans?

After you graduate, leave school, or drop below half-time enrollment, generally you have a grace period before you have to begin repayment. A grace period is a determined length of time when no payments are due. You can start repaying during the grace period and save some money in the long run.

For Federal Perkins Loans, the grace period is nine months.
For Federal Stafford Loans, the grace period is six months.
For Federal PLUS Loans, repayment begins 30 to 45 days after the final loan disbursement.

**Just remember that you are responsible for beginning repayment on-time, even if you do not receive this information.

REPAYMENT PLANS

If you are having difficulties making timely payments, there are four repayment plans available. Check with your lender for more information.

Standard: Your monthly payments will be at least $50 and you will have up to 10 years to repay.
Graduated Repayment Plan: This means that your payments will start out lower and will increase over time. Your monthly payments must be at least equal to the interest accrued on the loan between scheduled payments. You will pay off your loans in 10 years.
Income Sensitive Repayment Plan: Your monthly payments will be based on your yearly income and your total loan amount. As your income increases or decreases, so do your payments. As with the Graduated Repayment Plan, your monthly payments must be at least equal to the interest accrued on the loan between scheduled payments.
Extended Repayment Plan: To be eligible for this plan, you must have borrowed your first loan on or after October 7, 1998 and have FFELs totaling more than $30,000. Your payments will be fixed or graduated over a period of up to 25 years.

Note: The longer your loan is in repayment, the more interest you will pay. For a chart to explain how repayments work, a great tool to use is a Loan Payment Chart Generator or the Account Payment Plan Estimator.

CONSOLIDATION

During your grace period you may want to consolidate your federal education loans. Consolidation allows you to simplify the repayment process by combining your federal loans into one loan, so you make just one payment a month. This one monthly payment may be lower than what you would be required to pay monthly if you do not consolidate.

Important Facts to Remember When Consolidating Your Loans:

If you have a Stafford Loan made on or after July 1, 1995, you can reduce your consolidation rate by up to half a percentage point or more if you can consolidate before the end of your grace period.

You will have a longer period of time to repay your consolidation loans, but this means you will pay more interest over time.
Consolidation can double total interest expense! Once made, consolidation loans cannot be unmade.
By consolidating federal loans, students can lock into a lower interest rate.
You can get an even lower interest rate if you consolidate during your grace period.
The repayment period is 10 - 30 years, depending on the amount of your debt and the repayment option you choose.

What to Consider Before You Consolidate

Can I afford payments without consolidating?
Would consolidation make my payments more affordable?
Am I willing to pay additional interest?
Will my interest rate be higher or lower?
Will I receive any benefits from my lender?

Want to save money? Some loan holders offer reduced interest rates if you choose to repay your loan using electronic payment. Electronic payment allows your bank to automatically deduct your monthly payments from your checking or savings account. Also, you may be able to get a reduced interest rate if you make a certain number of consecutive on-time monthly payments.