How can I repay my loans?
how you can repay your loans
The Exit Counseling session will provide you with valuable information regarding your repayment options, deferments, forbearance, and how to avoid default. To benefit the most from this session, make a list of all of your outstanding student loans and the amount due for each one before you begin the counseling session.
To get started, you may have to create a new account in the system. Once you have created a new account and are logged in to the system you will be asked to answer several questions. This process will take approximately 35 minutes. Click on the link below to go to the login screen.
Currently the only company offering loan consolidation (as far as we know) is Direct Lending. To consolidate with them you can visit their site at http://www.loanconsolidation.ed.gov/
Direct Lending currently offers several types of loan repayment: Standard, Extended, Graduated, Income Contingent, and Income Based. For more information regarding these types of loans consult their website at http://www.direct.ed.gov/RepayCalc/dlindex2.html
There are several different types of loan forgiveness for which student at Fuller might be able to qualify. Here are some options.
- AmeriCorps - AmeriCorps provides those who complete a term of service with an education award that can be used to repay qualified student loans. This benefit includes the AmeriCorps VISTA program. Go to http://www.americorps.gov/for_individuals/benefits/index.asp for more information.
- Peace Corps - Volunteers are eligible to have fifteen percent of Perkins loans cancelled after 365 days of service and twenty percent cancelled after completing a third and fourth year of service. Four years of service allows for a total cancellation of seventy percent of existing Perkins loans. Go to http://www.peacecorps.gov/index.cfm?shell=learn.whyvol.finben for more information.
- Mennonite Central Committee - Individuals who participate in MCC's SALT program receive MCC loan assistance. The assistance is given on the individual's loan repayment plan up to $2,500 annually, but not exceeding 25% of the original loan amount each year. Individuals who continue for a second term receive up to $3,275 in loan assistance annually. For additional information, go to:http://mcc.org/serve/apply/faq.
- Public Service Loan Forgiveness Program - Individuals who make 120 monthly payments (10 years) after October 1, 2007 on Direct Loans, and are employed full time by a public service organization during that time, may be eligible to have the remaining loan balance forgiven. The 120 payments must be under specific repayment plans. Public service includes working for a non-profit organizations under section 501(c) (3) of the Internal Revenue Code that is exempt from taxation under section 501 (a) of the Internal Revenue Code. Public health, public library service, public education, and public interest law services are included in this program. For more information go to:http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessv4.pdf.
- Student Loan Repayment Program (SLRP) - When enlisting in the Army or Navy, SLRP will pay back up to $65,000 ($20,000 for reservists) in qualified educational loans. Enlisting in the Air Force allows for $10,000 to be repaid. Each year 15% or $500 (the greater amount) will be repaid. Annual and cumulative caps apply to the program.
For details on the Army program, go to https://www.hrc.army.mil/TAGD/Loan%20Repayment%20Program.
For details on the Navy program, go to http://www.cnrc.navy.mil/EIncentives/N5311%20EB/EB/FAQ/LRP%20ADOBE.pdf.
- Stafford Loan Forgiveness Program for Teachers - People who teach full time for five consecutive years in elementary and secondary schools serving low-income families may be eligible to have up to $17,500 of loan forgiveness. Go to http://studentaid.ed.gov/PORTALSWebApp/students/english/cancelstaff.jsp?tab=repaying for more information.
- Perkins Loan Cancellation - People teaching full time in a low-income school and/or teaching certain subjects may be eligible for Perkins Loan cancellation. Go to: http://studentaid.ed.gov/PORTALSWebApp/students/english/teachercancel.jsp for more information.
- National Institute of Health (NIH) Loan Repayment Program - NIH will repay up to $35,000 in qualified student loan debt for researchers and scientists who pursue a research career. For more information, go to http://www.lrp.nih.gov/. Other NIH employees not doing research may be eligible for loan repayment. Go to http://www1.od.nih.gov/oma/manualchapters/person/2300-537-1/ for more information.
- National Health Service Corps (NHSC) - Health professionals, including mental health providers, who serve at a NHSC approved site in Health Professional Shortage Area may be eligible for up to $50,000 toward student loan repayment. For more information, go to http://www.hrsa.gov/index.html.
Students in default cannot receive any form of government aid (including loans). If you are currently in default on a loan there are a few options you have to clear your default status.
1. Repay the loan in full. Once the loan has been repaid in full the default status can be cleared.
2. Make satisfactory repayment arrangements. Sometimes you can work with your lender to set up a payment plan that works for both you and your lender. Once you have made these arrangements you will still need to make 9 consecutive, full, on time, voluntary payments before your default status will be cleared.
3. Loan rehabilitation. A loan will not be considered rehabilitated until a student makes 9 consecutive, full, on time, voluntary payments.
Keep in mind that even after you have completed one of these options, sometimes it takes the lender a few months to update the National Student Loan Data System. You can either wait for them to update it or request a letter detailing your updated loan status to be sent to the school.
If you have loans from previous schools or programs you may be eligible to defer repayment on that loan while you are enrolled at Fuller. In order to apply for loan deferment you should contact the Registrar's office to get the appropriate paperwork. They can be reached at 626-584-5408 or by email at firstname.lastname@example.org
If you are unable to make your loan payments after you graduate or drop below half time you can apply for forbearance. You can do this directly with your lender. Forbearance allows you to postpone your loan payments for a set amount of time as decided by your lender. Your loans will continue to earn interest, but you will not be required to make payments. This will keep you from going into default and hurting your credit rating. Eligibility for forbearance is determined by your lender; thus, you will need to contact them directly to find out more about this option.