Exit Loan Information and Federal Loan Repayment Options

Exit Loan Counseling Requirements

Federal regulations require that all federal student loan borrowers complete an exit counseling session prior to graduation, or upon dropping below half-time status.   When we are notified that you are no longer at least a half-time student, you will be provided information regarding your obligation to repay your federal student loans, as well as the conditions for deferment, repayment, forbearance, and cancellation.

Stafford Loan Exit Counseling:  If you borrowed a Federal Stafford or Graduate PLUS loan, you can complete the online exit loan counseling requirement at www.studentloans.gov.

Perkins Loan Exit Counseling: If you borrowed a Federal Perkins Loan, ECSI, your Perkins Loan Servicer, will contact you with how to complete Exit Loan Counseling.

Federal Student Loan Repayment Options

Standard Repayment

In this repayment method, equal monthly payments of principal and interest are made over the loan repayment term (usually ten years). You'll pay the least amount of total interest using this payment plan.

Income-Based Repayment

The amount of the monthly payment is calculated at 15% of discretionary income (the difference between AGI and the federal poverty line). The maximum repayment period is 25 years; if you are unable to repay your loan in this amount of time, the loan will be discharged.

Income-Sensitive Repayment

In this plan, monthly payment amounts are calculated as a percentage of monthly gross income. As your income may change, you must reapply for this plan every year.

Graduated Repayment

This repayment method payment allows you to make reduced payments in the earlier years of your loan repayment term, with a gradual increase in payment amount over time.

Extended Repayment

If the total balance of your Federal Stafford, PLUS, or Consolidation loans is above $30,000, you may apply for an extension on your repayment term (up to 25 years).

Prepayment

You may pay all or part of your loan balance during the term of the loan without penalty. This will greatly reduce the total interest paid on your loans.

Deferment

A deferment is a period during which payments of principal are postponed. No interest accrues on either Subsidized Stafford or Perkins loans. Interest is charged on Unsubsidized Stafford loans and may be paid or allowed to accrue and capitalize. Borrowers must meet specific eligibility criteria and request the deferment from their lender(s).

Forbearance

During a period of forbearance, borrowers may either suspend payments or reduce their scheduled monthly payment amount on a temporary basis. The lender grants forbearance for a period of up to one year for borrowers who are willing but unable to make their monthly payments. The forbearance is renewable upon the borrower's request and the lender's approval. Interest continues to accrue on the subsidized and unsubsidized loans. The accrued interest may be paid or will be capitalized after the forbearance ends.

Visit http://studentaid.ed.gov/repay-loans to learn more about the payment plans, payment deferment, and payment forbearance options that are available to you.

Loan Servicer

A loan servicer is a company that handles the billing and other services on your federal student loan. Your loan is assigned to a loan servicer by the U.S. Department of Education after your entire loan amount is disbursed (paid out).  The loan servicer will work with you on repayment plans and loan consolidation and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.  For more information about loan servicers, visit the Federal Student Aid Site.