Loan Request Process
You need to complete the FAFSA application and the verification process, if you were selected, prior to being awarded
a student loan. If you have any questions, please feel free to email Tabetha Daves
at firstname.lastname@example.org or call 662-472-9177.
Financial aid suspension, appeals, and unsatisfactory academic progress will affect
your eligibility for a student loan. In addition, all transcripts from regionally
accredited colleges and universities must be on file in Admissions and Records before
a loan will be awarded.
General Loan Information
Federal law sets the maximum interest rates and fees. You maybe able to deduct some
of the interest you pay on student loans on your federal individual income tax return.
Federal Loan Prior to July 1, 2006, rate was variable. Effective July 1, 2006, the
rate changed to fixed.
Entrance Counseling - must be completed prior to obtaining a student loan.
Exit Counseling - must be complete the semester of graduation. Failure to complete
exit counseling will result in a hold on the student's account.
Subsidized Loans – Interest is paid by the government while you are enrolled at least
Unsubsidized Loans – You are responsible for the interest while attending school.
You do not have to pay the interest while in school (it can be capitalized – added
to your principal for payment later).
Federal Loan Repayment
You have a choice of federal repayment options, depending on the loan program you
are applying for, so you can choose the one that best meets your individual needs.
It is up to you to develop a budget for managing your educational expenses.Begins
6 months after you cease to be enrolled half time.At least $50 per month.There are
charges for late payments.You receive an upfront origination fee rebate. In order
to keep this incentive, you must make your first 12 loan payments on time; otherwise
the amount rebated will be reversed and charge back to your total loan amount owed.
Take a look at PayBack Smarter.
Sample Monthly Repayment
When you take out a loan, you have to repay it. It's never too soon to workout a repayment
plan! There can be many repayment options, depending on the type of loan and your
credit standing. The chart below will give you some idea on what your payments would
be, based on the amount borrowed:*The Chart below is based on a 6.8% Fixed Interest
|| Monthly Payment
For additional information on interest rates, go to current rate.
For additional information regarding interest rates, repayment plans and sample repayment
amounts, go the Federal web site.
Necessity for Repaying Loans
You should work with your lender if you are having problems repaying your loan to
avoid defaulting. Never ignore any delinquency notices you receive from your lender.
The consequences of failing to make payments are serious!The entire unpaid balance
and accrued interest becomes due and payable immediately.You lose deferment options.You
become ineligible for further aid.Your account may be assigned to a collection agency.
The default may be reported to credit agencies.Your income tax refund may be withheld.Your
employer (at the request of the Federal Government) can garnish part of your wages.The
Federal Government can take legal action against you.You may incur legal expenses
There is no such thing as free money when you take out a loan! The Federal Government
will expect timely repayment in full.
Even if you do not complete your education – or you do not complete your program of
study within the regular/required time for program completion.Even if you are unable
to obtain employment.Even if you are dissatisfied with your education.
Keep in Touch with Your Service Provider
To be a responsible borrower, make sure you notify your service provider immediately
about any changes to your situation or concerns with your account. Clear communication
between service provider and borrower can avoid many problems and ensure a smooth
- Notify regarding changes in name, address, SSN, or phone number.
- If you cannot make payment on time.
- Contact service provider before going into default because then it is too late to
fix your problem.
Your service provider can tell you ...
- Your total debt
- When 1st payment is due
- Number, frequency and amount of payments
- Refinancing and consolidation options
- That you have the right to prepay loan without penalty.
- Deferment, forbearance and cancellation provisions
Know Your Financial Aid History
The U.S. Department of Education keeps your financial aid history information on file
in their National Student Loan Data System *(NSLDS). You can access this site at http://www.nslds.ed.gov/ to review your financial aid history.