Debt Management
The page designed by Financial Aid to serve your post education debt management needs
Stay Informed | Stay Current | Stay Default Free
- News | Tips | Debt Management Strategies
- Exit Counseling
- Know What You Owe
- Making Payments [Who Do I Pay?]
- Finding the Repayment Plan for You
- Calculate Your Payment
- Loan Consolidation
- Understanding Default
- Loan Deferment | Forebearance
- Loan Forgiveness
News | Tips | Debt Management Strategies
- How to Start Paying Off Student Loans (Kick off your payments with honesty and responsibility) – USA News – story here
- Buried in Student Loans? Here’s how to pay them off – CBS News – article here
- Four Steps to Successful Student Loan Repayment – USA Funds – story here
- How to Avoid Defaulting on Your Student Loans (Violating your loan agreement can have severe consequences) – TG – article here
- Do Not Ignore Notices from the Lender! Dealing with Student Loan Default and Delinquency – AllTuition – article here
- Learn about how, when and to whom you make your Federal student loan payments – US Dept. of Education – info page here
- Repayment: What to Expect – US Dept. of Education (YouTube) – video here
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Exit Counseling
Loan exit counseling is an online tutorial created and required by the Department of Education. Exit Counseling offers separating students tips and useful information to help them manage their loans and understand their rights and responsibilities. Topics covered include: Loan repayment options, deferment, forbearance, delinquency and default, loan consolidation and loan forgiveness programs. Additional financial resource materials and links are also provided to support responsible debt management practices.
Get Started
Go to: www.nslds.ed.gov
Click “Exit Counseling” (Access requires the student’s 4-digit FAFSA PIN)
If you can’t remember your PIN
Go to: www.pin.ed.gov. Click “Request a Duplicate PIN” located on the left side. Enter the requested identifying information and click “Submit Request”. Answer challenge question and click “Submit Request”. Select “Display Now” and click “Submit Request”. PIN will appear on the screen.
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Know What You Owe
The Department of Education has created a database for students to manage their Federal education loans. This site is called NSLDS (National Student Loan Data System). URL: www.nslds.ed.gov. Click “Financial Aid Review”. Access requires the student’s 4-digit FAFSA PIN. Included in the database are all Federal student loans received from any post-secondary institution attended. NSLDS does not include any Private | Alternative loans taken to supplement the cost of education. Parent PLUS loan data is also included in the NSLDS database and will be found under the parent’s name using the parent’s FAFSA PIN.
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Making Payments [Who Do I Pay?]
Federal Loans
Stafford and PLUS loan payments are always made to your loan servicer (not to the university you attended). To find out who is servicing your loans click here.
Private Loans
Private | Alternative loan payments are remitted to the lender you originated the loan with. If you have taken out loans with multiple lenders you will have to make separate payments to each (unless you consolidate them). Additionally, there is no central database that tracks all of your private loans in the same way that NSLDS exists for Federal student loans. To know who to pay you will need to rely on the paperwork you received when you applied for the loan OR contact the school’s Financial Aid Office for possible verification. Also check your mail and email as your lender will likely be trying to make contact with you. DO NOT ignore your lender as doing so will lead to delinquency and a certain negative impact to your credit.
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Finding the Repayment Plan for You
Federal Loans
Standard
Breaks down your loan balance into monthly payments of at least $50 for up to 10 years. In general, this is the plan that will cost you the least amount of money in interest payments. For complete information, click here.
Graduated
If your income is low now, but you expect it to increase steadily over time, this plan may be right for you. Payments start out low and increase every 2 years for up to 10 years. IMPORTANT NOTE: Under Graduated you will pay more in interest over time than if you selected Standard Repayment. For complete information, click here.
Extended
Extended allows you to “extend” the repayment period from 10 years to up to 25 years. IMPORTANT NOTE: Under Extended you will pay more in interest over time than if you selected Standard Repayment. This plan works best for borrowers whose loan burden is too large to bear the standard monthly payments over the course of just 10 years. For complete information, click here.
Income-Based (IBR)
Income-Based Repayment (IBR) is designed to reduce monthly payments to assist with making your student loan debt manageable. If you need to make lower monthly payments, this plan may be for you. To qualify for IBR, you must have a partial financial hardship. You have a partial financial hardship if the monthly amount you would be required to pay on your IBR-eligible federal student loans under a 10-year Standard Repayment Plan is higher than the monthly amount you would be required to repay under IBR. Your payment amount may increase or decrease each year based on your income and family size. Once you've initially qualified for IBR, you may continue to make payments under the plan even if you later no longer have a partial financial hardship. IMPORTANT NOTE: Under Income Based (IBR) you will pay more in interest over time than if you selected Standard Repayment. For complete information, click here.
Pay As You Earn
The Pay As You Earn Repayment Plan helps keep your monthly student loan payments affordable, and usually has the lowest monthly payment amount of the repayment plans that are based on your income. IMPORTANT NOTE: Under Pay As You Earn you will pay more in interest over time than if you selected Standard Repayment. The Pay As You Earn plan will be available to borrowers by the end of 2012. Please look for updates from the Department of Education or contact your loan servicer for status on rollout. For complete information, click here.
Income-Contingent (ICR)
Income-Contingent Repayment (ICR) takes into consideration annual income and family size as well as the total loan amounts. If a loan balance remains after 25 years, it may be forgiven. Unlike the IBR Plan, borrowers need not be facing financial hardship to qualify. This plan may be best for those borrowers who are not facing demonstrated financial hardship, but whose financial situation is insufficient to bear the monthly payments under other repayment plans. IMPORTANT NOTE: Under Income-Contingent (ICR) you will pay more in interest over time than if you selected Standard Repayment. For complete information, click here.
Income-Sensitive (FFEL Loans ONLY)
Income-Sensitive allows borrowers to pay a monthly amount that takes annual income into consideration. The length of the repayment period is up to 10 years and the balance is not forgiven at the end. IMPORTANT NOTE: Under Income-Sensitive you will pay more in interest over time than if you selected Standard Repayment. For complete information, click here.
Private | Alternative Loans
Most lenders do not offer repayment options. Repayment terms are typically determined at the time the loan is originated (ex: 5, 10, 15 years). If you are not sure what the repayment terms are for the loan(s) you have outstanding, contact the lender immediately.
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Calculate Your Payment
Federal Loans
Quickly calculate estimated monthly payment amounts under several repayment plans.
Private | Alternative Loans
Most lenders do not offer repayment options. Repayment terms are typically determined at the time the loan is originated (ex: 5, 10, 15 years). If you are not sure what the repayment terms are for the loan(s) you have outstanding, contact the lender immediately.
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Loan Consolidation
Federal Loans
Loan consolidation can greatly simplify repayment by centralizing your loans into one bill and can lower monthly payments by giving you up to 30 years to repay. Consolidating your loans does have its RISKS along with its BENEFITS. Before you submit your application make sure you take the time to study the pros and cons. For program details and to start an application, click here
Private | Alternative Loans
Private Student Loans cannot be consolidated with Federal Student Loans however Private Student Loans may be consolidated into one new Private Student Loan. As with Federal Consolidation, the benefits include converting multiple payments into one single payment and potentially lowering your monthly outgo as a result of the loan term being reset. Depending on your credit, income, outstanding debt and market rates you may be able to attain a lower interest rate then the average of your current private loans. Before you decide for sure to consolidate your private student loans take the necessary time to shop, compare offers, know whether the rate is FIXED or VARIABLE and consider the RISKS and BENEFITS.
Lenders offering Consolidation Private Student loans include (but not limited to | not endorsed by CUI).
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Understanding Default
Understand how missing a loan payment can be a problem, what default means and the consequences of default. See what the Department of Education says here.
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Loan Deferment | Forbearance
A deferment or forbearance allows you to temporarily postpone making your student loan payments or to temporarily reduce the amount you pay.
Federal Loans
For complete information, click here.
Private | Alternative Loans
Deferment or Forbearance opportunities vary from lender to lender. If you are having trouble making your monthly private student loan payments, contact your lender immediately and inquire if a deferment or forbearance is an option for you. DO NOT ignore your lender if they are trying to reach you. Be up-front with them about your situation so they can best assess what options you may be eligible for that can help you.
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Loan Forgiveness
Teacher Loan Forgiveness
The Teacher Loan Forgiveness Program is intended to encourage individuals to enter and continue in the teaching profession. Under this program, if you teach full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families, and meet other qualifications, you may be eligible for forgiveness of up to a combined total of $17,500.
To learn more, determine if you are eligible and apply click here.
Public Service Loan Forgiveness
If you are employed in certain public service jobs and have made 120 payments on your Direct Loans (after Oct. 1, 2007), the remaining balance that you owe may be forgiven. Only payments made under certain repayment plans may be counted toward the required 120 payments. You must not be in default on the loans that are forgiven.
To learn more, determine if you are eligible and apply click here.
- Public Service Loan Forgiveness - FedLoan Servicing (YouTube) – video here.
Total and Permanent Disability Discharge
You may be eligible for a Total and Permanent Disability (TPD) Discharge on your federal student loans if you are unable to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that:
- can be expected to result in death,
- has lasted for a continuous period of not less than 60 months, or
- can be expected to last for a continuous period of not less than 60 months.
OR
If you are a veteran, you may be eligible for TPD Discharge if you’ve received a determination from the Department of Veteran Affairs (VA) that:
- you have a service-connected disability or service-connected disabilities that are 100% disabling or
- you are totally disabled based on an Individual Unemployability determination.
To learn more, determine if you are eligible and apply click here.
National Guard Student Loan Repayment Program (SLRP)
The National Guard values higher education and offers many types of assistance to help you stay on track while you serve. The Student Loan Repayment Program (SLRP) is available to Soldiers and officer candidates (09S) who have one or more qualifying and disbursed Title IV federal loan(s).
To learn more, determine if you are eligible and apply click here.
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