Loan Information

Smart Borrowing | NSLDS | Loan Servicer | Repayment | Consolidation | Deferment/Forbearance | Default

Smart Borrowing

• Only borrow what you need for tuition, books, and living expenses
• Know your costs and create a budget
• Cash Course: http://www.cashcourse.org
• Do Not Default
• Keep in touch with your financial aid office

National Student Loan Data System

• The National Student Loan Data System is the U.S Department of Education's (ED's) central database for student aid. You can access all your federal student loan information, including loan history, loan repayment status and contact information for your loan servicer.

Loan Servicer

• A company that collects payments, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a federal student loan on behalf of a lender.

Repayment

• Find the right repayment plan for you, learn how to make payments, get help if you can't afford your payments, see if you qualify for deferments or forbearance, and see what circumstances might result in a loan going into default.

Consolidation

• The process of combining one or more loans into a single new loan.

Deferment or Forbearance

• Deferment-A postponement of payment on a loan that is allowed under certain conditions and during which interest does not accrue on Direct Subsidized Loans, Subsidized Federal Stafford Loans, and Federal Perkins Loans. All other federal student loans that are deferred will continue to accrue interest. Any unpaid interest that accrued during the deferment period may be added to the principal balance (capitalized) of the loan(s).

• Forbearance-A period during which your monthly loan payments are temporarily suspended or reduced. Your lender may grant you a forbearance if you are willing but unable to make loan payments due to certain types of financial hardships. During forbearance, principal payments are postponed but interest continues to accrue. Unpaid interest that accrues during the forbearance will be added to the principal balance (capitalized) of your loan(s), increasing the total amount you owe.

Default

• Failure to repay a loan according to the terms agreed to in the promissory note. For most federal student loans, you will default if you have not made a payment in more than 270 days. You may experience serious legal consequences if you default.