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Know What (and Who) You Owe Federal loans can be found on either studentloans.gov or
nslds.ed.gov Heartlandecsi.com can be utilized for Federal Perkins Loans,
McElroy Loans and other Luther loans Federal Perkins Loan on all three sites
Private loan information No central database for private loans Utilize disclosure statements for contact information Use my.luther.edu portal to search financial aid history by year
www.studentloans.gov
Logging on to StudentLoans.gov Enter FSA User ID and Password May be prompted to review account settings Update email or postal mail / text messaging
Click on Repayment Estimator Lower right hand side under Tools and Calculators
Click View or Add Loans Used to see loans by date, eligible repayment plans, interest
rates and Servicer Contact Loan Servicers Located at very bottom of screen Phone and email contact for each servicer
www.nslds.ed.gov
www.heartlandecsi.com
Loan Servicers Hired by the lender to collect payments from the borrower
and process applicable deferments, forbearances, cancellations and discharges
Federal Direct Stafford Loans (subsidized or unsubsidized) serviced by one of ten servicers
Federal Perkins Loans from Luther serviced by Heartland ECSI
Private loans may be serviced by the lender or another servicer
Power of Interest Subsidized Stafford Loan
Fixed rate of interest for each year’s loan Government pays the interest during in-school period and 6 month grace
period (except for loans borrowed between 7/1/12 – 6/30/14) Unsubsidized Stafford Loan
Fixed rate of interest for each year’s loan Borrower is responsible for interest from the date loan is disbursed
Perkins Loan Fixed rate of 5% Government pays the interest during in-school period and 9 month grace
period Private Loans
Fixed or variable rate of interest Borrower is responsible for the interest from the date loan is disbursed Most private loans have a 6 month grace period
Grace Period Checklist Contact Your Servicer(s) Set up online account access Make sure your address and contact information are correct Sign up for electronic debit of bank account for payments Select an appropriate repayment plan Pay down unsubsidized Stafford Loan interest and principal with
extra money, if possible
Double check to make sure that first payment made it to the servicer on time
Review your mail/e-mail (spam)
Paying Accrued Interest on Unsubsidized Stafford Loans and
Private Loans During the In-School or Grace Periods Will Reduce the
Amount You Pay in Total
Interest on Subsidized Loans
Repayment Plans
Repayment Plans
Repayment Plans
Repayment Plans
Repayment Plans
Repayment Plans
Repayment Plans
Income Driven Repayment Plans Income Percentage
Income Driven Repayment Plans Length of Repayment
Salary After Taxes
If I borrow $31,500…
Income Driven Examples
Paying $25 Extra Each Month
Signing Up for Automated Payments
HELP!! I CAN’T Make My Payment! Contact your servicer immediately if you see that you will be
unable to afford your monthly payment Switch to a more affordable payment plan Do you qualify for a Deferment? In School Status or approved graduate fellowship program Economic Hardship (including Peace Corps) Unemployment
Can you receive forbearance? Will postpone or reduce monthly payments for a short period of time Interest continues to accrue on all loan types during forbearance Last resort option if a new payment plan or a deferment won’t work
Delinquency & Default Delinquency is not making a payment by the specified due date Notices every 30 days
Default = 270 days delinquent
Consequences of Default Entire loan due in full immediately (acceleration) Loss of deferment options Damage to credit history Ineligible for additional federal or state student financial aid Wage garnishment Federal and state income tax offset Revocation of professional license is possible
Forgiveness and Discharge Forgiveness Programs Teacher Loan Forgiveness 5 full-time consecutive years of teaching Low-income schools or AEA’s Forgiveness amount based on discipline
Public Service Loan Forgiveness 10 years of full-time service in public service or non-profit entities 120 loan payments made Remainder of balance forgiven – need to be in income-based plan
Loan Discharge Death Total and Permanent Disability Victim of Identity Theft Loan discharged in bankruptcy (prove undue hardship- rare)
