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Student Loan Repayment
As you prepare to leave Zane State College whether it is due to graduation, withdrawing, transferring you need to make arrangements to repay your student loans. Six months after you separate from the institution you are expected to begin repayment on any student loans you have borrowed. Due to the fact that everyone has different circumstances, you are allowed to choose between four repayment plans which include: Standard Repayment- This payment plan is the least expensive over the repayment period because it accumulates the least amount of interest. This plan has a fixed monthly payment of a minimum of $50 for a ten year repayment period. Graduated Repayment- This payment plan starts with low payment amounts and the amount slowly increases over time. This plan is a good option for someone who does not have a lot of income currently but expects for their income to increase in the future. Overall this payment plan costs more in interest over the repayment period. This repayment plan is also paid over a ten year period. Income Sensitive Repayment- This repayment plan is based off of your household income. Payments are adjusted annually based on any changes in income that may have occurred. This repayment plan is also paid over a ten year period but can be extended to 15 years under a special forbearance provision. This plan also has higher interest costs over the repayment period. Extended Repayment- This payment plan is only available for someone that does not have a balance on a Federal Family Education Loan Program as of Oct. 7, 1998, or at the time you received a FFELP loan after Oct.7, 1998. This payment plan is also only available if your educational loan balance exceeds $30,000. Under this plan the repayment period is 25 years and payments must be made at a standard or graduated level. This repayment plan has the highest interest costs over the repayment period. To choose the plan that is right for you visit http://www.usafunds.org/ If you cannot currently afford to make payments there are options that may be available to you. Some of these options are: Deferment, Forbearance, or Consolidation. Deferment- Postponing payments for up to three years without accruing interest during the postponement period. Forbearance- If you do not meet the requirements for deferment you may consider forbearance. This can also postpone payment in 12 month increments. However interest does accrue while you are in the postponement period. You are encouraged to make interest payments during this time but it is not required. Consolidation- This allows you to combine all of your student loans into one loan. This makes repayment more convenient and may allow you to extend your repayment period and will lower your monthly payment amount. You are likely to have smaller payments over an extended amount of time however; you will probably pay more interest over the repayment period. To apply for one of these options you need to visit http://www.manageyourloans.com/, research which option is best for you, and turn in the necessary paperwork. Ignoring your student loans will not make them disappear! If you fail to take action, you could end up in default and face the following consequences:
If you have any questions or concerns feel free to contact me, I will assist you in any way that we can! Kelly Adams |
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