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.
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.
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.
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
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.
CREDIT BALANCES AND REFUNDS DUE TO OVERPAYMENT OR OTHER, NON-FEDERAL STUDENT AID FUNDS:
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.
HSOC policy is to monitor credit balances as they are created in student accounts.
PRIORITY OF CREDIT BALANCES AND REFUNDS DUE TO TITLE IV FEDERAL STUDENT AID:
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.
HSOC provides notification via email/letter/conference to students of refunds or returns issued on credit balances in a student’s account.
NSLDS – Student Access Link
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.
Entrance Counseling is required before you can receive your first Direct Subsidized Loan, or Direct Unsubsidized Loan as an undergraduate, or your first Direct PLUS Loan as a graduate/professional student.
Exit Counseling is required when you graduate, leave school, or drop below half-time enrollment . Exit Counseling provides important information to prepare you to repay your federal student loan(s).