(713) 225-1955 info@housoc.com 3522 Polk St. Houston, TX 77003
(713) 225-1955 info@housoc.com 3522 Polk St. Houston, TX 77003

Loan Repayments

Loan Repayments

Loan Repayment

Federal educational loans have four main repayment plans, consisting of the Standard Repayment, Extended, Graduated and Income-Contingent. The monthly payments of the alternative plans are lower than those of the Standard Repayment plan, but the term of the loan is extended and the amount of interest to be repaid over the life of the loan is increased.

Standard Repayment

Under this plan a fixed monthly amount will be paid for a loan term of up to ten years. There is a $50 minimum payment requirement.

Extended Repayment

Under this plan the loan term may be extended up to 30 years, depending upon the amount borrowed.

Graduated Repayment

Unlike the standard and extended repayment plans, this plan begins with lower payments, which gradually increase every two years. As with the extended repayment plan, the loan term may be extended up to 30 years.

Income Contingent Repayment

Under this plan, repayment is based on the borrower’s income and the total amount of debt. Monthly payments are adjusted each year as the borrower’s income changes. The loan term is up to 25 years, at which point any remaining balance on the loan will be discharged. This repayment plan option is not available to parents.

Loan Types: Subsidized Loans

Payment of a subsidized Stafford loan may be deferred as long as the student is enrolled in an eligible institution at least half-time. Repayment will begin six months after the student graduates, withdraws, or drops below half-time status.

Unsubsidized Stafford Loans

Payment on the principal balance of the loan may be deferred while the student is in school. Students may choose to pay or defer the interest payments while they are in school until repayment of the principal balance begins.

PLUS Loans

Repayment of a PLUS loan generally begins on the date of the last disbursement of the loan and may be extended up to 10 years, however parents do have the option of delaying repayment until six months after their dependent student is no longer enrolled at least half-time.

Graduate PLUS Loans

There is no grace period for a Grad PLUS loan. Repayment begins on the date of the last disbursement of the loan, however, while enrolled in school on at least a half-time basis you are eligible for an in-school deferment that allows you to postpone payments on your Grad PLUS Loan until you graduate or drop below half-time status. The standard repayment period is up to ten years.

Additional Deferments

Under certain circumstances, students may apply for a deferment or a forbearance. During deferment, students are allowed to temporarily postpone payments on their loan, with no accrual of interest. If students are ineligible for a deferment, forbearance may be received. During a forbearance, payments on a student loan are either postponed or reduced, but interest continues to accrue. For additional information relating to student loan deferments or forbearances, refer to the Department of Education Student Guide website or contact the loan lender/guarantor.

Credit Balances and Refunds Due to Federal Financial Aid

+Credit Balances and Refunds Due to Federal Financial Aid
Depending on the specifics of the situation, for students who have a credit balance and are recipients of Title IV federal aid, HSOC will credit Title IV federal aid funds to a student’s account only against allowable institutional charges are paid in full, including:

* Current charges for tuition, fees, tools, and books.


If a student or parent overpays the student’s account, related credit balances will be refunded to the student, regardless of the source of the payment.

If a credit balance on a student’s account is related to other, non-Title IV Federal Student Aid funds (for example, external awards, such as scholarships, grants, or private loans) may be returned to the source, or maybe refunded to the student, depending on the specifics of the situation and the conditions of the award.

Refund Processes

HSOC policy is to monitor credit balances as they are created in student accounts.


HSOC will issue refunds for “eligible” credit balances related to Title IV Federal Student Aid funds.

Credit balances related to Title IV federal aid funds, per federal regulations, must be refunded no later than 14 days after either:
The date the credit balance occurred on the student’s account, if the credit balance occurred after the first day of class of a payment period, or

The first day of classes of the payment period, if the credit balance occurred on or before the first day of class of that payment period.

Issuing Refunds:

HSOC provides notification via email/letter/conference to students of refunds or returns issued on credit balances in a student’s account.

Houston School of Carpentry

Nationally Accredited by the Commission of the Council on Occupational Education.