Archive for the ‘Student Loan Repayment’ Category
The Direct Consolidation Loan Program offers four repayment plans
The Direct Consolidation Loan Program offers four repayment plans with various term selections:
Standard Repayment Plan – Under this plan, you will pay a fixed amount of at least $50 each month for up to 10 to 30 years, based on your total education indebtedness. This plan may result in lower total interest paid when compared [...]
In: Student Loan Consolidation, Student Loan Repayment · Tagged with: repay student loans,
What you need to know about repaying student loans
After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This “grace period” will be
* six months for a Federal (FFEL) or Direct Stafford Loan.
* nine months for Federal Perkins Loans
The repayment period for all [...]
In: Student Loan Repayment · Tagged with: repay student loans,
Repaying Defaulted Student Loans Held By a Guaranty Agency
Under the Federal Family Education Loan (FFEL) Program, after your student loan is placed in default by the holder of the loan, an insurance claim for the amount of the loan is paid by the guaranty agency (the organization that administers the FFEL Program for your state) to the holder of the loan. To find [...]
In: Student Loan Repayment · Tagged with: repay student loans,
How is the amount of payment calculated under the ICR plan
The ICR Plan is designed to keep payments affordable. Generally, borrowers pay the lesser of:
the amount they would pay if they repaid their loan in 12 years, multiplied by an income percentage factor that varies with their annual income, or
20 percent of their discretionary income (AGI minus the poverty level for their family size)
Under the [...]
In: Student Loan Repayment · Tagged with: loan payment calculation,
About Income Contingent Repayment (ICR) Plan
The ICR Plan gives borrowers the flexibility to meet their obligations without causing them financial hardship. Monthly payments are based on borrowers’ annual Adjusted Gross Incomes (AGI), loan balance and family sizes. Income is obtained from the Internal Revenue Service (IRS) or from an Alternative Documentation of Income Form (discussed below) submitted by the borrowers.
To [...]
In: Student Loan Repayment · Tagged with: Income Contingent Repayment,
What are the repayment plans?
When repaying a Direct Consolidation Loan, you may choose from as many as four repayment plans with various term selections.
* Standard Repayment Plan:
You will pay a fixed amount each month until your loan(s) are paid in full. Your monthly payments will be at least $50 for up to 10 to 30 years, based on your [...]
In: Student Loan Repayment · Tagged with: repayment plans,
Can I change repayment plans?
Most borrowers may change repayment plans at any time. However, borrowers who are required to repay under the ICR plan must make three consecutive monthly payments before changing to another plan. There is no limit to the number of times borrowers may change plans.
A borrower may change to the ICR plan at any time. After [...]
In: Student Loan Repayment · Tagged with: payment plans,
You can make a payment now by credit or debit card
Student loan borrowers in default now have more options than ever before to repay their student loans. The U.S. Department of Education’s (Department) Default Resolution Group is assisting individuals in default.
This site will provide you with information on the following loan programs:
Federal Family Education Loans (FFEL), which include Federal Stafford, Federal Consolidation and Federal PLUS [...]
In: Student Loan Repayment · Tagged with: loan payment,
Can I consolidate my loans if I am enrolled in school?
Yes and No. Effective for Direct Consolidation Loan applications received on or after July 1, 2006, borrowers who are enrolled in school cannot consolidate loans that are in an in-school status. These are loans that have not yet entered or used up the 6-month grace period entitlement.
Borrowers still can consolidate loans that are in grace, [...]
In: Student Loan Repayment · Tagged with: repay student loans,
Borrowers Currently Enrolled in school can no longer Consolidate Their Loans
The Higher Education Reconciliation Act of 2005 eliminated the provision that allowed a FFEL or Direct Loan borrower who is enrolled in school on at least a half-time basis to request to enter repayment early on his or her Stafford Loans if the lender approves. Repayment is now defined as not beginning until 6 months [...]
In: Student Loan Repayment · Tagged with: repay student loans,