Just like mortgage payments, student loan repayments need to be on time also. Your loan servicer will provide information about repayment and will notify you of the date loan repayment begins. In most cases, your loan payment will be monthly. It is very important that you make your loan payment on time every month. You [...]
Posts under ‘Student Loan Repayment’
Some federal education loans are eligible for consolidation into a Direct Consolidation Loan
If you have several student loans and are overwhelmed by the payment, you need to consider the option of consolidating. If you have a federal education loan, you can consolidate it into a Direct Consolidation Loan. The subsidized loans that can be consolidated are: Subsidized Federal Stafford Loans Direct Subsidized Loans Subsidized Federal Consolidation Loans [...]
There are some student loans you can’t consolidate
This is the perfect time to consolidate your student loans. The rates are low and you won’t see this kind of rates once the economy starts growing again. While most federal education loans are eligible for consolidation into a direct consolidation loan including subsidized loans and unsubsidized loans. There are a few exceptions that some [...]
Once you leave or graduate your school, you have 6 months grace period
Did you know that when you leave school which includes graduating, withdrawing, or dropping below half-time attendance, you have 6 months of grace period before you have to make student loan payments. This applies to direct subsidized and unsubsidized loans. But be very careful with one scenario: There’s no second grace period. If you have [...]
You have the Borrower Grace Periods no matter what the lender says
You are graduating, or you have graduated for 3 moths and yet there’s no sign of a full time job. You’re still hunting for that job and you’re losing sleep over the upcoming payment of your student loans. You are worried that someone from the lender will call you soon and you will receive a [...]
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 [...]
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 PLUS loans begins on the [...]
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 [...]
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 [...]
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. [...]