Repayment Options

Federal Stafford Loans Repayment Chart

Please click on the following link to review the repayment amount when borrowing Federal Stafford Loans - Federal Stafford Loans Repayment Chart.


Please remember that there are options to prevent default, such as deferments and forbearances. These are positive alternatives that will not affect a borrower's credit.

Deferment

 

A deferment is an option that borrowers' have that will postpone payments for a set period of time. A deferment may be obtained for specific conditions including returning to school and economic hardship. The type of loan determines the type of deferment that can be obtained. For some loans, deferment can be applied to both the principal and interest. For others, deferment will only be applied to the principal while interest will continue to accrue. A borrower must apply for a deferment with the holder of the loan and approval is not guaranteed. For more information about the different types of deferments and forbearances, please contact your lender or guarantor.

 

Forbearance

 

If a borrower does not qualify for a deferment, they may be able to obtain forbearance. Forbearance postpones payments for a set period of time. Interest does accrue during a forbearance causing the balance owed to increase. Forbearance can be obtained for reasons such as poor health or unforeseen circumstances. A borrower must contact the holder of their loan to request forbearance. For more information about the different types of deferments and forbearances, please contact your lender or guarantor.

 

Default

 

The term "default" refers to the status of a loan after 270 days have passed without payment. At that time, outstanding interest is capitalized and any applicable collection fees are added. If a borrower is unable to make payment, they can request a deferment or forbearance which can stop their loan from going into a default status. Defaulted loans are reported to credit bureaus which will make it difficult to secure future loans and will result in higher interest rates on those loans. Income tax refunds and wages can also be garnished to repay the loan. A borrower that has a loan in default will not be able to receive financial aid until the default status is cleared. It is imperative that a borrower consult with the holder of their loan before this happens.

For more information and help about default, please visit these sites:

 

http://federalstudentaid.ed.gov/locate.html

 

http://www.fsahelp.ed.gov/

 

 

National Student Loan Data System (NSLDS)

 

NSLDS can be used to view the principal owed on all federal loans; as well as the interest that has accrued. NSLDS also provides contact information for lenders and guarantors.  To obtain information about your Title IV loans and/or grant data, please visit their site at: www.nslds.ed.gov. You will need your FAFSA pin to enter the site.