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Most money matters are easier to manage if you keep them simple—and that
includes your student loans. Avoid default at all cost!
When you leave school (or drop below half-time enrollment), your last official
date of attendance (or separation date) will be given to your lender by your
school's registrar. The separation date marks the beginning of your grace period .
During your grace period you will receive your
repayment schedule/disclosure
statement. Before your loan enters the repayment stage, you need to decide on
a plan. If you do not choose a different plan and supply the lender with the
information required, you will be given a Standard Repayment Plan. If you have
any concerns about your ability to make payments according to this schedule,
contact the holder of your loan(s) immediately. Chances are good that there
is a repayment option that can fit your situation. There can also be other
options.
If you encounter hardship and are concerned that making your payments may become
difficult, contact your lender or guaranty agency immediately while you can still
take advantage of other options. By taking early action to help yourself, you will
encourage your lender or guaranty agency to help you avoid default. Some options
available to you are the following:
| Deferments let you postpone monthly payments |
| Forbearance allows you to reduce or delay payments |
| Forgiveness eliminates your obligation to repay all or part of your loan. (Forgiveness is primarily granted for permanent or total disability or death.) |
| Change your repayment plan to either a Standard Repayment, Income Sensitive or Graduated Repayment. |
The most important thing to do is to contact your lender or guaranty agency before
any problems arise. This will allow you to work together to find a suitable solution.
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