The Department of Education will assign your loans to a servicer who will handle the billing and other services
Yes! If you borrow the full amount you will have money for books, supplies, room and board, transportation and personal expenses installment loans Massachusetts.
Federal loan refund checks are distributed by the SCNM Business Office tentatively at the end of the first week of the quarter, upon enrollment verification.
Federal aid is disbursed to SCNM’s account on the first day of the quarter. Funds are then posted to the student’s account and tuition is deducted prior to the student receiving their financial aid refund check.
The federal government does not pay the interest accrued on the Subsidized Stafford Loan
It is recommended that you create an online account through your servicer’s webpage in order to facilitate loan payments. The loan servicer will contact you and provide updates and reminders regarding your federal student loans.
The ideal time to consolidate is at the time of repayment. Consolidation is an option; however, once the borrower consolidates repayment begins immediately.
Repayment Options
We are here to offer assistance to our students and alumni about repayment options. Before your loans enter repayment, consider the following repayment plans and reach out if you have any questions.
Standard Repayment Plan Each monthly payment is the same amount throughout the repayment period. The repayment plan is up to 10 years and the amount may be adjusted if there are changes in the variable interest rate.
Graduated Repayment Plan The monthly payment amount generally starts lower and increases at scheduled times throughout the repayment period. An interest only payment for the first two to four years and it usually takes up to 10 years to repay.
Extended Repayment Plan Certain borrowers with more than $30,000 in outstanding principal and interest may repay over a period not to exceed 25 years.
Income-Based Repayment Plan (IBR) The monthly payment amount is adjusted annually based on your income, family size, and federal student loan debt. Monthly payments will be based on 15 percent of your discretionary income. Any outstanding principal and interest owed after 25 years of qualifying payment will be forgiven; however, you ount forgiven.
Revised Pay As You Earn Repayment Plan (REPAYE) The monthly payment amount is adjusted annually based on your income, family size and federal student loan debt. Direct loans ONLY are applicable. Monthly payments will be based on 10 percent of your discretionary income. Any outstanding principal and interest owed after 20 or 25 years of qualifying payments will be forgiven. If married, both you and your spouse will be considered whether you file jointly or separately.
*Federal Student Aid offers the Loan Simulator to assist you with selecting the repayment plan that fits your financial needs.
Understanding Deferments Forbearances If you have difficulty making your payments contact your lender, holder or servicer immediately to determine if you qualify for either a deferment or forbearance.
Deferment Deferments are a period of time during which a lender temporarily postpones regular payments. Deferments are considered an entitlement, meaning your lender must grant them if you qualify. It is your responsibility to request a deferment from your lender and provide the necessary documentation for eligibility. If you have been given a deferment, the federal government will pay the interest that accrues on your Subsidized Stafford Loan; however, you will be responsible to pay the interest accruing on the loan.
Forbearance A lender temporarily reduces, extends, or postpones regular loan payments. Forbearances are usually granted if medical or dental interns enroll in an internship and have exhausted their deferment eligibility if the borrower is serving in a national service position under the National and Community Service Trust Act of 1993; and if annual debt equals or exceeds 20% of a borrower’s disposable income. You are responsible for interest and principal amount on both the Subsidized and Unsubsidized Stafford Loans.