FREQUENTLY ASKED QUESTIONS

Why do I need an exit interview?

You must receive an exit interview in order to know your rights and responsibilities as a borrower.

When do I start repayment?

Your repayment begins 180 days after your last day of attendance.

What are my obligations?

Your obligations are to stay in good standing and current with your loans. You also want to keep your most current information updated with your servicer and school.

What if I’m coming back to school?

You will remain on an in-school deferment.

BENEFITS & OPTIONS

What type of options do I have?
Some of your options are:

  • Student loans that don’t require credit checks and don’t require payments while in school
  • Repayment options to fit your needs
  • Borrowing government student loans gives you the benefits of deferring them when needed unlike private loans
  • Forbearance is another option given by the servicer at their discretion to postpone your loans and to bring them current

TERMS & DEFINITIONS

What is the difference between scholarship and loans?

You don’t have to pay back scholarships because they have been awarded to you for your education. You are required to pay back loans.

What is the difference between subsidized and unsubsidized?

The government pays the accrued interest while you are in school and deferment periods for subsidized loans. Interest accrued is paid by the borrower for unsubsidized loans.

What is a FAFSA?

FAFSA is a Free Application for Federal Student Aid.

What is a deferment?

A deferment is a postponement of repaying a loan under certain conditions.

CONSEQUENCES OF DEFAULT

How do I default on my loans?

You will be in default on your loans if you are delinquent for 270 days. Click here to resolve your default.

Can I consolidate them if I default?

You may consolidate your loans if in default by contacting the Department of Education.

How do I get out of default?

You may get out of default by either getting a loan rehab, which involves making nine consecutive on-time payments, or by consolidating.

What will happen if my loans default?

You may damage you credit, garnish your wages & income taxes and you may not be able to go back to school if you are required to borrow government student loans.

How can I avoid going into default?

You may avoid going into default by staying in touch with your servicer and school and letting them know your current status, as well as keeping demographic information current.

What types of payment plans are there?

There are several types of repayment plans, such as standard, extended, graduated, income based and income sensitive.

What determines a payment plan?

To determine your repayment plan you must speak with your servicer who will ask you several questions in order to determine which repayment plan works best for you.

How can I postpone or defer my loans?

You may postpone or defer your loan by contacting either your servicer or school and speaking with a loan counselor to determine if you do qualify for one.