Loan Repayment/Consolidation

• Fixed monthly payment of at least $50.
• Repayment term cannot exceed 10 years, excluding in-school, grace and deferment or forbearance periods.

• Fixed annual or graduated repyament amount, not to exceed 25 years.
• To qualify, you must have more than $30,000 outstanding in either FFEL or Direct Loans.

• Payments are smaller at the beginning of repayment and gradually increase over time.
• No single payment may be more than three times greater than any other payment.
• Repayment term is generally 10 years.

• Plan for the major types of federal loans made to students.
• Monthly payment is based on income and family size.

• Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, family size, and the total amount of your Direct Loans)

• Based on your annual income.
• The maximum repayment period is 10 years.

Deferments allow you to temporarily postpone the payment of your loan. Deferments are not automatic; you must apply and be approved by your lender.
For more information on FFEl and Federal Direct deferment situations and requirements please click here.
For Alternative/private loan deferments, please contact your lender.

If you do not qualify for a deferment, you may be eligible to request forbearance from your lender. Forbearance is the temporary postponement or reduction in your monthly payment. Often the amount of time it takes to repay your loan is extended. Interest continues to accrue during the period, increasing the loan balance. There are several different types of forbearance available depending on your situation. Forbearance must be approved by your lender.

For Federal Loans please click here for more information on forbearance and other forms of postponement options.

New terms and conditions will apply to consolidated loans, so to determine if consolidating your loans is the way to go, remember to consider all the options:

• Look at your payment options.
• Consider the advantages and disadvantages of consolidating.
• Estimate your monthly payment, and repayment length.
• Calculate your interest rate.
• Find out the terms of a consolidation loan.

For more in-depth information on FFEL and Federal Direct loan consolidation and some comparison information, please click here.

We do not endorse any lenders, but the following lenders offer alternative/private loan consolidation. Please click the lenders below to be linked to their website.

Wells Fargo

Chase

• Your defaulted loan is reported as a collection account to national credit bureaus. As a poor credit risk, you will find it increasingly difficult to obtain loans of any kind.
• Collection costs of up to 25% of your balance are added to your debt.
• You become ineligible for further financial aid until your loan is paid in full or you have entered a qualifying repayment agreement.
• Your school may withhold academic transcripts.
• Your tax refunds may be withheld to repay the defaulted student loan.
• Federal payments to you, including Social Security retirement and/or disability income, may be reduced. Your wages may be garnished.
• Your loan may be assigned to a collection agency.
• You lose the right to defer payment or to request a forbearance.

If you have missed payments, or will have trouble making future payments, contact your lender immediately to avoid default!