Even with savings, gifts from family, and Scholarships and Grants you may find that you need additional funding to pay for your higher education.
Student loans can make up the difference between what you have and what you need to make your college dream a reality. Unlike scholarships and grants, however, borrowed money must be repaid - most often with interest - regardless of whether you complete your education or not.
How you manage this debt can affect your credit and your ability to borrow later on for a house, a car or anything else. Defaulting on a student loan can damage your credit for up to seven years.
Should you have trouble making your student loan payments, a Deferment will allow you to postpone payments for reasons such as unemployment or disability. A Forbearance is an agreement with your lender to postpone payments when you are having financial difficulties but are not eligible for a deferment.
For more information, see our Deferment & Loan Forbearance information. Otherwise, to combine your student loan payments into one manageable monthly payment, you may want to consider Loan Consolidation.
Borrow only what you need. Our Loan Counseling can explain the federal requirements you must meet to borrow a Stafford Loan, and help you better understand your Repayment Options. The loan counseling process includes an Entrance Interview, for when the student begins college and learns about his/her loans, and the Exit Interview, which take place upon leaving school and explains the repayment options,
Estimate the amount of debt you can afford. Use the Repayment Calculator to figure how much you'll need to make your monthly loan repayments once you graduate.
Understand your borrowing agreement fully - including all interest calculations. Our student loan glossary can help you understand all the terminology you may encounter in the financial aid process. It covers everything from accrued interest to variable interest.
Stay on schedule! Repaying a student loan on time can create and build an excellent credit history.
If you can prepay a student loan, do it! You won't incur any penalties, and you'll save on the total interest due.
Showing posts with label Personal Financial Help. Show all posts
Showing posts with label Personal Financial Help. Show all posts
Thursday, July 8, 2010
Student Loan Consolidation Borrower Benefits
H.R. 2669 contains provisions aimed to increase Pell grants through 2017, gradually cut federal student loan interest rates in half over the next 5 years, and institute several cuts to lenders and guarantors. Other provisions include Title IV loan forgiveness changes, increases for income protection allowances, and Title VIII Partnership Grants.
Borrower benefits will no longer be available due to the lender and guarantor cuts:
Elimination of "Exceptional Performer" status which allowed lenders to receive higher insurance rates on defaulted loans
A reduction in the insurance paid by the federal government for defaulted loans from 98% to 97%
Reduced amount guarantors may keep when collecting on defaulted loans
Reduced special allowance payments to lenders
Increased loan fee lenders must pay to the Department of Education(DOE)
Decreased account maintenance fees paid by the DOE to guarantors
A full summary of all the provisions contained on H.R. 2669 can be reviewed by visiting: http://www.nasfaa.org/publications/2007/G2669Summary091007.html
Again, any federal student loan consolidation that has been completed prior to October 1, 2007 will not be affected by the changes.
Borrower benefits will no longer be available due to the lender and guarantor cuts:
Elimination of "Exceptional Performer" status which allowed lenders to receive higher insurance rates on defaulted loans
A reduction in the insurance paid by the federal government for defaulted loans from 98% to 97%
Reduced amount guarantors may keep when collecting on defaulted loans
Reduced special allowance payments to lenders
Increased loan fee lenders must pay to the Department of Education(DOE)
Decreased account maintenance fees paid by the DOE to guarantors
A full summary of all the provisions contained on H.R. 2669 can be reviewed by visiting: http://www.nasfaa.org/publications/2007/G2669Summary091007.html
Again, any federal student loan consolidation that has been completed prior to October 1, 2007 will not be affected by the changes.
Locate Your Student Loans
As a result of recent changes at the Department of Education, you'll need to provide your student loan information with your consolidation application. There are several ways that you can easily locate your student loans. To apply for new Student Loans, visit: Student Loan Network. National Student Loan Data System
This federal database contains a detailed list of your federal student loans, including interest rates and loan amounts. Check out our helpful guide that will assist you through each step of the process.
Get started now >>
Use Your Free Credit Report
You can get a copy of your credit report free of charge. Your report will have a detailed list of all your student loans. We have prepared a helpful tutorial that illustrates each step along the process.
Get started now >>
Monthly Loan Statements
Another option for gathering your loan information is to review your monthly student loan statements. Each statement you receive from your lender(s) will list the total amount due for your student loan(s).
This federal database contains a detailed list of your federal student loans, including interest rates and loan amounts. Check out our helpful guide that will assist you through each step of the process.
Get started now >>
Use Your Free Credit Report
You can get a copy of your credit report free of charge. Your report will have a detailed list of all your student loans. We have prepared a helpful tutorial that illustrates each step along the process.
Get started now >>
Monthly Loan Statements
Another option for gathering your loan information is to review your monthly student loan statements. Each statement you receive from your lender(s) will list the total amount due for your student loan(s).
Financial Aid Glossary
Department of Education – The federal agency that establishes financial aid programs and processes financial aid applications.
Academic Year – A one-year period between July 1 and June 30.
Grants – A type of financial aid award that does not have to be repaid. Grants are often made based on an applicant's financial need or EFC
Scholarships – A financial aid award that does not have to be repaid. Scholarships are generally made based on an applicant meeting certain eligibility criteria. You can search for college scholarships for free.
Loans – Financial aid awards that the student (or other party like a parent, for example) borrows from a lender, the school or other third party. Loans must be repaid by the borrower according to the terms of a promissory note, usually with interest.
Work Study – See Federal Work Study
The Free Application for Federal Student Aid (FAFSA) – The official application form for all federal financial aid programs. Complete your FAFSA online.
Federal Work Study (FWS) – Federally funded program that allows colleges and universities to create campus based employment programs for financial aid recipients.
Federal Pell Grant – A need-based financial aid program funded by the federal government. Students with an EFC less than $x are eligible for the Pell Grant. The amount of the award is based on the student's enrollment level (full time, three-quarter time, etc.) and the cost of attendance.
Federal Supplemental Education Opportunity Grant (SEOG) – A need-based financial aid program funded by the federal government. Colleges receive an annual allocation of SEOG and, within certain guidelines, develop an awarding policy for this fund.
Federal Family Education Loan Program (FFELP) – The collective name for the Federal Stafford and PLUS loan programs. FFELP loans are funded by private lenders.
Federal Direct Student Loan Program (FDSLP) – The program name for loans that are both guaranteed and funded by the federal government. If your school is a "Direct Lending School", your Stafford Loan is administered by the Federal Direct Student Loan Program (FDSLP). Funds for Federal Direct Loans are provided by the US government directly to students and their parents through their schools. Applications can be obtained from your school. Banks and guarantee agencies are not involved in the process.
Expected Family Contribution (EFC) – The amount that a student and family can be expected to contribute towards educational expenses over a year's time. The EFC is calculated when the student submits a financial aid application.
Federal Methodology Expected Family Contribution (FM EFC) – The specific EFC calculated by the federal government based on information submitted on the FAFSA. The FM EFC calculation is set each year by the U.S. Department of Education and determines eligibility for federal aid programs.
Institutional Methodology Expected Family Contribution (IM EFC) – a variation of the FM EFC calculated by a college or university. This EFC calculation can incorporate different items than the FM EFC calculation and is used by colleges to allocate institutionally sponsored aid programs.
Financial Need – The difference between a student's Cost of Attendance and Expected Family Contribution. It is the amount of financial aid the student "needs" to afford attendance at a particular college.
Cost of Attendance – the total of all costs a financial aid office estimates students will incur during attendance at the college or university
Direct Costs – Costs that the college or university directly bills to the student. Tuition and fees are direct costs.
Indirect Costs – Costs associated with a student's enrollment that are not billed by or incurred through the College. Transportation and miscellaneous costs are indirect costs.
Award Letter – A notice from a financial aid office to a financial aid applicant that specifies the financial aid programs and dollar amount of a each financial aid award.
Cost Less Aid Amount – The difference between the total cost of education and the financial aid package offered to you by the school, including scholarships, grants, work-study and Stafford Loans. This amount is what you are expected to pay out of pocket or through supplemental loan programs (see PLUS and Alternative Loans)
Federal Stafford Loan – a federally guaranteed loan program that allows students to borrow funds from lenders. Stafford Loans allow the student to defer payments while he/she is in school. The interest rate for new Stafford Loans is variable but will not exceed 8.25%.
Subsidized Stafford Loan – This is a need-based student loan. Interest that accrues on subsidized Stafford Loans while the student is in school (at least half time) is paid by the federal government on the student's behalf.
Unsubsidized Stafford Loan – The unsubsidized Stafford Loan is a non-need based loan program, so students with no financial need can even qualify for this aid program. Interest that accrues on Unsubsidized loans must be paid by the borrower, even while he/she is in school. The borrower may make periodic payments (monthly or quarterly, depending on the lender's policy) or allow the interest to accrue throughout enrollment and have the interest "capitalized" (added to the loan's principle balance). While capitalization eliminates having to make payments while in school but increases the total cost of a loan.
Federal PLUS Loan – A federally guaranteed loan program that allows parents to borrow funds to help pay educational expenses. The program does require the borrower to pass a simple credit check. The loan's interest rate is variable, but new loans have a maximum interest rate of 9%.
Promissory Note – Legal document that specifies the terms and conditions of a loan.
Deferment – A temporary period during which a borrower is not required to make payments. Deferments are more common in Federal loan programs rather than alternative loans.
For Subsidized Stafford Loan borrowers (and Perkins Loan borrowers), many deferments are subsidized, meaning the interest that accrues on the loan during the deferment is paid by the federal government.
Some deferments are unsubsidized, meaning the interest that accrues must be paid by the borrower.
(Resources on the web from the department)
Guarantee Agency (Guarantor) – One of approximately forty companies throughout the country that financially guarantee that loans made by lenders under the FFELP will be repaid. Guarantee agencies typically retain a percentage of each student loan to maintain a fund to cover unpaid loans. A list of existing guarantee agencies is available at the following link (DOE Link)
Guarantee Fee – A type of fee a borrower pays to a lender. Guarantee fees are collected as a financial reserve to protect the loan program in cases of student default. Federal Stafford, PLUS and Federal Direct Student loans guarantee fee is a maximum of 1% of the loan's principal balance.
Origination Fee – A fee the borrower pays to the lender for originating a student loan. Origination fees are most often associated with Federal Stafford, PLUS and Federal Direct Student loans. The maximum origination fee for these federal loans is 3% of the loan's principal balance.
Entrance Counseling – An educational session that first time Stafford borrowers must fulfill before the loan's proceeds can be disbursed. The Entrance Counseling sessions provides these first time borrowers basic information about student loans and the terms and conditions of the Stafford Loan program.
Exit Counseling – An educational session that Stafford Loan borrowers must fulfill around the time of graduate or separation from a college. The Exit Counseling session provides the borrower detailed information about the loans he/she borrows, the company that will collect the payment and the repayment alternatives that are available.
Debt to Income Ratio – The percentage of a loan applicant's (monthly) income that is used to meet debt obligations. Many alternative loan programs use this calculation to determine an applicant's eligibility for a loan program.
Standard Repayment – A repayment alternative in which a borrower pays a set amount monthly over the entire repayment term. Also called "Simple Repayment".
Income Sensitive Repayment – This repayment alternative is available to some federal loan borrowers (check with your lender or servicer to learn if your loans qualify for this alternative). Income sensitive repayments bases the monthly payment on the borrower's income in relation to total federal loan indebtedness.
Under this option, monthly payments can drop to as low as the amount of interest that accrues on the loan's principal balance. Borrowers must apply for this option annually and must provide documentation of income - usually in the form of a federal tax return.
Extended Repayment – A new option to recent federal loan borrowers. This option allows borrowers with high balances (greater than $25,000 in federal loans) to extend the repayment term from its standard 10 year term to 25 or 30 years.
While extending the repayment term reduces the loan's monthly payment, it also increases the total amount of interest paid on the loan.
Graduated Repayment – This option is available for federal loans, and even some alternative loan providers offer graduated repayment.
Under graduated repayment, payments are low (usually just enough to cover the loan's accruing interest) when the borrower first enters repayment. Periodically, the payments increase to pay off the loan in the standard 10 year repayment term.
The idea of graduated repayment is to have low payments while a borrower is first entering the working world. Then, as income increases, the student loan payments also increase.
Loan Servicer – Once a loan has been approved and disbursed, by the lender or the guarantee agency, it is usually transferred to a servicing company. This is a company that is responsible for managing your account while you are in school and during repayment. You will repay the servicing company until the loan is paid in full. Any questions or repayment issue should be addressed to the servicing company. However, if you are having problems with the servicer, you should contact your lender for additional assistance.
Academic Year – A one-year period between July 1 and June 30.
Grants – A type of financial aid award that does not have to be repaid. Grants are often made based on an applicant's financial need or EFC
Scholarships – A financial aid award that does not have to be repaid. Scholarships are generally made based on an applicant meeting certain eligibility criteria. You can search for college scholarships for free.
Loans – Financial aid awards that the student (or other party like a parent, for example) borrows from a lender, the school or other third party. Loans must be repaid by the borrower according to the terms of a promissory note, usually with interest.
Work Study – See Federal Work Study
The Free Application for Federal Student Aid (FAFSA) – The official application form for all federal financial aid programs. Complete your FAFSA online.
Federal Work Study (FWS) – Federally funded program that allows colleges and universities to create campus based employment programs for financial aid recipients.
Federal Pell Grant – A need-based financial aid program funded by the federal government. Students with an EFC less than $x are eligible for the Pell Grant. The amount of the award is based on the student's enrollment level (full time, three-quarter time, etc.) and the cost of attendance.
Federal Supplemental Education Opportunity Grant (SEOG) – A need-based financial aid program funded by the federal government. Colleges receive an annual allocation of SEOG and, within certain guidelines, develop an awarding policy for this fund.
Federal Family Education Loan Program (FFELP) – The collective name for the Federal Stafford and PLUS loan programs. FFELP loans are funded by private lenders.
Federal Direct Student Loan Program (FDSLP) – The program name for loans that are both guaranteed and funded by the federal government. If your school is a "Direct Lending School", your Stafford Loan is administered by the Federal Direct Student Loan Program (FDSLP). Funds for Federal Direct Loans are provided by the US government directly to students and their parents through their schools. Applications can be obtained from your school. Banks and guarantee agencies are not involved in the process.
Expected Family Contribution (EFC) – The amount that a student and family can be expected to contribute towards educational expenses over a year's time. The EFC is calculated when the student submits a financial aid application.
Federal Methodology Expected Family Contribution (FM EFC) – The specific EFC calculated by the federal government based on information submitted on the FAFSA. The FM EFC calculation is set each year by the U.S. Department of Education and determines eligibility for federal aid programs.
Institutional Methodology Expected Family Contribution (IM EFC) – a variation of the FM EFC calculated by a college or university. This EFC calculation can incorporate different items than the FM EFC calculation and is used by colleges to allocate institutionally sponsored aid programs.
Financial Need – The difference between a student's Cost of Attendance and Expected Family Contribution. It is the amount of financial aid the student "needs" to afford attendance at a particular college.
Cost of Attendance – the total of all costs a financial aid office estimates students will incur during attendance at the college or university
Direct Costs – Costs that the college or university directly bills to the student. Tuition and fees are direct costs.
Indirect Costs – Costs associated with a student's enrollment that are not billed by or incurred through the College. Transportation and miscellaneous costs are indirect costs.
Award Letter – A notice from a financial aid office to a financial aid applicant that specifies the financial aid programs and dollar amount of a each financial aid award.
Cost Less Aid Amount – The difference between the total cost of education and the financial aid package offered to you by the school, including scholarships, grants, work-study and Stafford Loans. This amount is what you are expected to pay out of pocket or through supplemental loan programs (see PLUS and Alternative Loans)
Federal Stafford Loan – a federally guaranteed loan program that allows students to borrow funds from lenders. Stafford Loans allow the student to defer payments while he/she is in school. The interest rate for new Stafford Loans is variable but will not exceed 8.25%.
Subsidized Stafford Loan – This is a need-based student loan. Interest that accrues on subsidized Stafford Loans while the student is in school (at least half time) is paid by the federal government on the student's behalf.
Unsubsidized Stafford Loan – The unsubsidized Stafford Loan is a non-need based loan program, so students with no financial need can even qualify for this aid program. Interest that accrues on Unsubsidized loans must be paid by the borrower, even while he/she is in school. The borrower may make periodic payments (monthly or quarterly, depending on the lender's policy) or allow the interest to accrue throughout enrollment and have the interest "capitalized" (added to the loan's principle balance). While capitalization eliminates having to make payments while in school but increases the total cost of a loan.
Federal PLUS Loan – A federally guaranteed loan program that allows parents to borrow funds to help pay educational expenses. The program does require the borrower to pass a simple credit check. The loan's interest rate is variable, but new loans have a maximum interest rate of 9%.
Promissory Note – Legal document that specifies the terms and conditions of a loan.
Deferment – A temporary period during which a borrower is not required to make payments. Deferments are more common in Federal loan programs rather than alternative loans.
For Subsidized Stafford Loan borrowers (and Perkins Loan borrowers), many deferments are subsidized, meaning the interest that accrues on the loan during the deferment is paid by the federal government.
Some deferments are unsubsidized, meaning the interest that accrues must be paid by the borrower.
(Resources on the web from the department)
Guarantee Agency (Guarantor) – One of approximately forty companies throughout the country that financially guarantee that loans made by lenders under the FFELP will be repaid. Guarantee agencies typically retain a percentage of each student loan to maintain a fund to cover unpaid loans. A list of existing guarantee agencies is available at the following link (DOE Link)
Guarantee Fee – A type of fee a borrower pays to a lender. Guarantee fees are collected as a financial reserve to protect the loan program in cases of student default. Federal Stafford, PLUS and Federal Direct Student loans guarantee fee is a maximum of 1% of the loan's principal balance.
Origination Fee – A fee the borrower pays to the lender for originating a student loan. Origination fees are most often associated with Federal Stafford, PLUS and Federal Direct Student loans. The maximum origination fee for these federal loans is 3% of the loan's principal balance.
Entrance Counseling – An educational session that first time Stafford borrowers must fulfill before the loan's proceeds can be disbursed. The Entrance Counseling sessions provides these first time borrowers basic information about student loans and the terms and conditions of the Stafford Loan program.
Exit Counseling – An educational session that Stafford Loan borrowers must fulfill around the time of graduate or separation from a college. The Exit Counseling session provides the borrower detailed information about the loans he/she borrows, the company that will collect the payment and the repayment alternatives that are available.
Debt to Income Ratio – The percentage of a loan applicant's (monthly) income that is used to meet debt obligations. Many alternative loan programs use this calculation to determine an applicant's eligibility for a loan program.
Standard Repayment – A repayment alternative in which a borrower pays a set amount monthly over the entire repayment term. Also called "Simple Repayment".
Income Sensitive Repayment – This repayment alternative is available to some federal loan borrowers (check with your lender or servicer to learn if your loans qualify for this alternative). Income sensitive repayments bases the monthly payment on the borrower's income in relation to total federal loan indebtedness.
Under this option, monthly payments can drop to as low as the amount of interest that accrues on the loan's principal balance. Borrowers must apply for this option annually and must provide documentation of income - usually in the form of a federal tax return.
Extended Repayment – A new option to recent federal loan borrowers. This option allows borrowers with high balances (greater than $25,000 in federal loans) to extend the repayment term from its standard 10 year term to 25 or 30 years.
While extending the repayment term reduces the loan's monthly payment, it also increases the total amount of interest paid on the loan.
Graduated Repayment – This option is available for federal loans, and even some alternative loan providers offer graduated repayment.
Under graduated repayment, payments are low (usually just enough to cover the loan's accruing interest) when the borrower first enters repayment. Periodically, the payments increase to pay off the loan in the standard 10 year repayment term.
The idea of graduated repayment is to have low payments while a borrower is first entering the working world. Then, as income increases, the student loan payments also increase.
Loan Servicer – Once a loan has been approved and disbursed, by the lender or the guarantee agency, it is usually transferred to a servicing company. This is a company that is responsible for managing your account while you are in school and during repayment. You will repay the servicing company until the loan is paid in full. Any questions or repayment issue should be addressed to the servicing company. However, if you are having problems with the servicer, you should contact your lender for additional assistance.
FAFSA Online - Get Financial Aid Application Help!
Do you need help with your FAFSA form? The Federal Financial Aid Application is the most important financial aid form you can complete to pay for college, but many people either avoid it or make costly mistakes when filling it out. Our free, comprehensive Help Guide, Frequently Asked Questions, and Tips and Secrets will help you maximize your financial aid and qualify for scholarships, grants, and student loans.
What financial aid application options do you have?
For more than ten years, the Student Loan Network has helped students and families like you get information and access to the funding you need for higher education. We'll help you get started with our free college scholarships program, ScholarshipPoints.com, and our free college scholarship search site, StudentScholarshipSearch.com.
After you have exhausted all resources searching for scholarships, it's time to apply for federal student loans such as the Stafford loan and PLUS loan. If federal financial aid and scholarships aren't enough, you can investigate private student loans, which are non-need based, credit-based student loans. Graduate students should also investigate graduate student loans.
What financial aid application options do you have?
For more than ten years, the Student Loan Network has helped students and families like you get information and access to the funding you need for higher education. We'll help you get started with our free college scholarships program, ScholarshipPoints.com, and our free college scholarship search site, StudentScholarshipSearch.com.
After you have exhausted all resources searching for scholarships, it's time to apply for federal student loans such as the Stafford loan and PLUS loan. If federal financial aid and scholarships aren't enough, you can investigate private student loans, which are non-need based, credit-based student loans. Graduate students should also investigate graduate student loans.
Deferment and Forbearance Forms
Welcome to the Student Loan Consolidation Forms and Application Center. Here you will find the most common forms you will need in relation to loan consolidation and deferment.
Click here to obtain student loan consolidation forms!
An important fact about deferment and forbearance:
Deferment/forbearance does NOT lock in your interest rates. While your loans are deferred, they continue to have variable rates unless you are deferring a consolidated loan (which has a fixed interest rate). Currently, interest rates are at 39 year lows; if you consolidate now, you can defer after the consolidation is done and have these rates locked in for the life of the loan, and still defer payments for up to 3 years or 36 months. If rates go up and you do not consolidate, your deferred loans will accrue interest at the higher rates.
Click here to consolidate your student loans before deferment! Form Requirements
In School Deferment Enrolled at an eligible school as a full-time student
Enrolled at an eligible school less than full-time but at least half-time (for borrowers who, on the date they signed the promissory note, did not have an outstanding balance on an FFEL Program loan made before July 1, 1987)
Economic hardship deferment Experiencing financial hardship. Borrower is receiving payments under federal or state public assistance; or serving as a Peace Corp volunteer; or borrower is working full-time and monthly income does not meet certain standards; or borrower's payments on all of the borrower's federal education loans exceed a certain percentage of income.
Unemployment deferment Borrower is eligible for unemployment benefits
Borrower is unemployed or working less than 30 hours and diligently seeking full-time employment
Temporary disability deferment Borrower is temporarily totally disabled
Borrower is unable to maintain employment because of caring for a spouse or dependent who is temporarily totally disabled
Education related Deferment Engaged in a full-time course of study in a Graduate Fellowship program
Engaged in a full-time Rehabilitation Training program
Engaged in an Internship/Residency program (for borrowers with an outstanding balance on at least one FFEL program loan that was made before July 1, 1993; PLUS loan borrowers qualify only if the loan was made before August 15, 1993)
Teaching in a designated teacher shortage area (for Stafford or SLS borrowers whose first loans were made on or after July 1, 1987 and before July 1, 1993)
Working parent / parental leave deferment Borrower is pregnant, caring for a newborn child or caring for a newly adopted child and is not working full-time or attending school during the deferment period and was enrolled in school at least half-time within the six-month period preceding this deferment
Borrower entered or reentered the workforce within one year preceding this deferment and is working full-time in a position earning not more than $1 per hour above the federal minimum wage and is the mother of a preschool-age child
(for borrowers with an outstanding balance on at least one FFEL Program loan which was made before July 1, 1993, or borrower had a balance on a loan that was made before July 1, 1993, at the time borrower obtained any loan disbursed on or after July 1, 1993. Parental Leave/Working Mother Deferment)
PLUS Borrower with dependent student Dependent student is enrolled full-time at an eligible school (for PLUS borrowers with an outstanding balance on an FFEL Program loan which was made on or after July 1, 1987, and before July 1, 1993, or the PLUS borrower must have an outstanding balance on a FFEL Program loan made before July 1, 1993, when borrower obtained a loan disbursed on or after July 1, 1993)
Dependent student is engaged full-time in a rehabilitation training program (for PLUS borrowers with an outstanding balance on a FFEL Program loan which was made before July 1, 1993, or for borrowers with an with an outstanding balance on a FFEL Program loan made before July 1, 1993, when borrower obtained a loan disbursed on or after July 1,1993)
Public service deferment Borrower is on active duty in the Armed Forces of the United States
Borrower is serving full-time as an officer in the Commissioned Corps of the Public Health Service
Borrower is serving in the Peace Corp
Borrower is a full-time paid volunteer in the Action Programs
Borrower is a full-time paid volunteer for a Tax-Exempt Organization
Borrower is on active duty in the National Oceanic and Atmospheric Administration (NOAA)
PLUS borrowers or Consolidation borrowers are not eligible for a Public Service Deferment
Click here to obtain student loan consolidation forms!
An important fact about deferment and forbearance:
Deferment/forbearance does NOT lock in your interest rates. While your loans are deferred, they continue to have variable rates unless you are deferring a consolidated loan (which has a fixed interest rate). Currently, interest rates are at 39 year lows; if you consolidate now, you can defer after the consolidation is done and have these rates locked in for the life of the loan, and still defer payments for up to 3 years or 36 months. If rates go up and you do not consolidate, your deferred loans will accrue interest at the higher rates.
Click here to consolidate your student loans before deferment! Form Requirements
In School Deferment Enrolled at an eligible school as a full-time student
Enrolled at an eligible school less than full-time but at least half-time (for borrowers who, on the date they signed the promissory note, did not have an outstanding balance on an FFEL Program loan made before July 1, 1987)
Economic hardship deferment Experiencing financial hardship. Borrower is receiving payments under federal or state public assistance; or serving as a Peace Corp volunteer; or borrower is working full-time and monthly income does not meet certain standards; or borrower's payments on all of the borrower's federal education loans exceed a certain percentage of income.
Unemployment deferment Borrower is eligible for unemployment benefits
Borrower is unemployed or working less than 30 hours and diligently seeking full-time employment
Temporary disability deferment Borrower is temporarily totally disabled
Borrower is unable to maintain employment because of caring for a spouse or dependent who is temporarily totally disabled
Education related Deferment Engaged in a full-time course of study in a Graduate Fellowship program
Engaged in a full-time Rehabilitation Training program
Engaged in an Internship/Residency program (for borrowers with an outstanding balance on at least one FFEL program loan that was made before July 1, 1993; PLUS loan borrowers qualify only if the loan was made before August 15, 1993)
Teaching in a designated teacher shortage area (for Stafford or SLS borrowers whose first loans were made on or after July 1, 1987 and before July 1, 1993)
Working parent / parental leave deferment Borrower is pregnant, caring for a newborn child or caring for a newly adopted child and is not working full-time or attending school during the deferment period and was enrolled in school at least half-time within the six-month period preceding this deferment
Borrower entered or reentered the workforce within one year preceding this deferment and is working full-time in a position earning not more than $1 per hour above the federal minimum wage and is the mother of a preschool-age child
(for borrowers with an outstanding balance on at least one FFEL Program loan which was made before July 1, 1993, or borrower had a balance on a loan that was made before July 1, 1993, at the time borrower obtained any loan disbursed on or after July 1, 1993. Parental Leave/Working Mother Deferment)
PLUS Borrower with dependent student Dependent student is enrolled full-time at an eligible school (for PLUS borrowers with an outstanding balance on an FFEL Program loan which was made on or after July 1, 1987, and before July 1, 1993, or the PLUS borrower must have an outstanding balance on a FFEL Program loan made before July 1, 1993, when borrower obtained a loan disbursed on or after July 1, 1993)
Dependent student is engaged full-time in a rehabilitation training program (for PLUS borrowers with an outstanding balance on a FFEL Program loan which was made before July 1, 1993, or for borrowers with an with an outstanding balance on a FFEL Program loan made before July 1, 1993, when borrower obtained a loan disbursed on or after July 1,1993)
Public service deferment Borrower is on active duty in the Armed Forces of the United States
Borrower is serving full-time as an officer in the Commissioned Corps of the Public Health Service
Borrower is serving in the Peace Corp
Borrower is a full-time paid volunteer in the Action Programs
Borrower is a full-time paid volunteer for a Tax-Exempt Organization
Borrower is on active duty in the National Oceanic and Atmospheric Administration (NOAA)
PLUS borrowers or Consolidation borrowers are not eligible for a Public Service Deferment
Personal Finance First-Aid Kit
Does Your Budget Need First-Aid?
Getting established after graduation is no easy task. Between looking for a job, finding a place to live and paying for living expenses, life can be expensive. At Student Loan Consolidator, we know how important this period of life is, so we developed the Personal Finance First-Aid Kit – a self guided easy to use budget tool.
How The First-Aid Kit Can Help
For starters, the First-Aid Kit provides a monthly budget worksheet with simple instructions on how to draw up a budget. It only takes a few minutes, and can really give you a sense of where your money is being spent.
Next we list tips on how to cut corners and save money in all areas of your budget. From negotiating better rates with credit card companies, to finding discounts on gas and air travel, there are hundreds of ways to save extra money each month.
Finally, we'll send you monthly updates with new ideas on how to save extra cash and optimize your budget.
Getting established after graduation is no easy task. Between looking for a job, finding a place to live and paying for living expenses, life can be expensive. At Student Loan Consolidator, we know how important this period of life is, so we developed the Personal Finance First-Aid Kit – a self guided easy to use budget tool.
How The First-Aid Kit Can Help
For starters, the First-Aid Kit provides a monthly budget worksheet with simple instructions on how to draw up a budget. It only takes a few minutes, and can really give you a sense of where your money is being spent.
Next we list tips on how to cut corners and save money in all areas of your budget. From negotiating better rates with credit card companies, to finding discounts on gas and air travel, there are hundreds of ways to save extra money each month.
Finally, we'll send you monthly updates with new ideas on how to save extra cash and optimize your budget.
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