Loan Repayment Policy and Procedures
Understanding Your Loan Repayment Obligations
Train. Empower. Employ.
Completing a FASFA Application
Discover your eligibility for financial aid by completing the Free Application for Federal Student Aid (FAFSA). To complete a financial aid application, go to fafsa.ed.gov.
When you complete the FAFSA form on the myStudentAid app or online at fafsa.gov, you will see instructions for each question. You can get additional help by selecting the question mark icon next to each FAFSA question. This will display a "tooltip" that provides information about how to answer that question.
Loan Repayment Policy and Procedure
For additional assistance please contact us:
DSDT Financial Aid Department
Federal and Private Student Loan Summary
Differences between federal and private student loans?
Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically
offered with private loans.
With some exceptions, 34 C.F.R. 601.2(b) defines private education loan as: the term is defined in 12 C.F.R. 226.46(b)(5), a loan provided by a private educational lender that is not a title IV loan and that is issued expressly for postsecondary education expenses to a borrower, regardless of whether the loan is provided through the educational institution that the student attends or directly to the borrower from the private educational lender.
*Private loans differ by lender and by type of loan. Be sure you understand the terms of your loan, and
keep in touch with your lender about any questions you may have.
Exit Counseling
If you leave school or graduate, The U.S. Department of Education requires you to complete Exit Loan Counseling.
Repayment
Repayment begins six months after you graduate or drop below half-time enrollment (six credit hours). If you receive a loan and Withdraw, Graduate, or Drop below six hours you must contact Student Financial Services so we can counsel you regarding your loan status. Please keep in mind that if you withdraw you may owe part of your loan funds back immediately.
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Type of Loan
|
Interest Rate (2021 - 2022)
|
|---|---|
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Direct Subsidized
|
3.73%
|
|
Direct Unsubsidized (Undergraduate Students)
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3.73%
|
Repayment begins six months after you graduate or drop below half-time enrollment (six credit hours). If you receive a loan and Withdraw, Graduate, or Drop below six hours you must contact Student Financial Services so we can counsel you regarding your loan status. Please keep in mind that if you withdraw you may owe part of your loan funds back immediately.
Students are able to track the amount they owe, their student loan servicers, and interest rates by logging in the National Student Loan Database System (NSLDS). You will login with the same Username and Password that was used to complete the Free Application for Student Aid (FAFSA) application.
Repayment Plans
Generally 10 percent of your discretionary income
Generally 10 percent of your discretionary income, but
never more than the 10-year Standard Repayment Plan
amount
Generally 10 percent of your discretionary income if you're a new borrower on or after July 1, 2014*, but never more than the 10-year Standard Repayment Plan amount Generally 15 percent of your discretionary income if you're not a new borrower on or after July 1, 2014, but never more than the 10-year Standard Repayment Plan amount
The lesser of the following:
- 20 percent of your discretionary income or
- what you would pay on a repayment plan with a fixed payment over the course of 12 years, adjusted according to your income
Under all four plans, any remaining loan balance is forgiven if your federal student loans aren’t fully
repaid at the end of the repayment period. For any income-driven repayment plan, periods of economic hardship deferment, periods of repayment under certain other repayment plans, and periods when your required payment is zero will count toward your total repayment period. Whether you will have a balance left to be forgiven at the end of your repayment period depends on a number of factors, such as how quickly your income rises and how large your income is relative to your debt. Because of these factors, you may fully repay your loan before the end of your repayment period. Your loan servicer will track your qualifying monthly payments and years of repayment and will notify you when you are getting close
to the point when you would qualify for forgiveness of any remaining loan balance.
If you’re making payments under an income-driven repayment plan and also working toward loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program, you may qualify for forgiveness of any remaining loan balance after you’ve made 10 years of qualifying payments, instead of 20 or 25 years. Qualifying payments for the PSLF Program include payments made under any of the incomedriven repayment plans.
If you’re making payments under an income-driven repayment plan and also working toward loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program, you may qualify for forgiveness of any remaining loan balance after you’ve made 10 years of qualifying payments, instead of 20 or 25 years. Qualifying payments for the PSLF Program include payments made under any of the incomedriven repayment plans.
Defaulting Student Loans
Default is failure to repay a loan according to the terms agreed to in the promissory note. For most federal
student loans, you will default if you have not made a payment in more than 270 days. If you default on a federal student loan, you lose eligibility to receive additional federal student aid and you may experience serious legal consequences.
If you default on your federal student loan, the entire balance of the loan (principal and interest) becomes immediately due. This is called acceleration. Once your loan is accelerated, you no longer have access to deferment or forbearance options or to a choice of repayment plans.
In addition, if you do not make repayment arrangements with the holder of your loan—the U.S. Department of Education (ED), a guaranty agency, or the school that made the loan—and comply with the terms of the repayment arrangement, your loan holder may place your loan with a collection agency. If your loan is placed with a collection agency, you will be responsible for costs incurred by your loan holder to get payment. The holder of your loan can take other actions to collect as well.
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