Loans in Repayment
Federal Direct Loans (Subsidized and/or Unsubsidized):
Federal Direct Loans are available to undergraduate and graduate level students though the Federal Direct Loan Program to help students pay for college. Direct Loans are made directly from the U.S. Department of Education, without going through a bank or other lender. The Department of Education will assign your loan to a servicer once it is disbursed. Federal Direct Loans may be Subsidized (the government pays the interest on the loan while you are in school and during periods of deferment) or Unsubsidized (interest begins accruing from the time the loan is disbursed) based on financial need as determined by the FAFSA. More information about the Federal Direct Loan program and subsidized/unsubsidized differences can be found through Federal Student Aid.
Direct Loan Repayment Information
Loan repayment on Federal Direct Loans typically begins 6 months after a student has graduated or dropped below half-time attendance. It is important you understand your responsibilities as a borrowerr and repayment options for your student loans to build a solid financial foundation. You can view your loan history and also manage your loan repayment through www.studentloans.gov.
Many different repayment options are available for your loans, with pros and cons for each type. These plans were designed to help make loan payments for students more manageable. You will need to work with your loan servicer to help determine which plan will benefit you the most in repaying your loans.
Life happens, and there may be times that you need your loan repayments postponed or reduced. Deferment and forbearance options are available if you are having difficulty making your loan payments. Choosing one of these options will help you avoid defaulting on your loans while alleviating the financial strain you may be experiencing during a time of hardship. Be sure to continue making payments while your deferment or forbearance request is being processed and be sure stay in contact with your servicer during this time.
You are required to repay your student loans even if you don’t complete your education, can’t find a job related to your program of study, or are unhappy with the education you paid for with your loan. In certain circumstances, however, your loan may be canceled, forgiven, or discharged.
Some circumstances that may be eligible for loan cancellation:
- Teacher cancellation: https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/teacher
- Public Service cancellation: https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/public-service
- Total and Permanent Disability forgiveness: https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/disability-discharge
Beware of companies offering to lower your interest rate or get your loan canceled – they are going to charge you to do a loan consolidation, which you can do for free on your own. It is not the right choice for everyone.
Consolidation is a process where you take out a new loan to pay off some or all of your existing federal student loans. There are many pros and cons to consolidation and you should do your research before pursing consolidation to see if it is the right choice for you. The following websites can help you determine if loan consolidation will benefit you.
- FinAid.org - Why Consolidate?
- Debt.org - Pros and Cons of Consolidating Student Loans
- US News My Money Blog - Should You Consolidate your Student Loan Debt
If you choose to consolidate, you can complete the processes at www.studentloans.gov. Once you have logged in, you will need to “Complete Direct Consolidation Loan Application and Promissory Note”.
Federal Perkins Loan
What is the Federal Perkins Loan:
How to repay:
The lender for your Federal Perkins Loan is Gonzaga University; however payments will be made to a billing service, Campus Partners.
There are Cancellation provisions for this loan if you are employed in certain areas:
https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts (scroll down to find Federal Perkins Cancellation chart)
FAQ about Perkins Loan Cancellation:
Total and Permanent Disability:
What are they?
Forms to request a Deferment/Forbearance (select the form that says “Use this form if you normally send your payments to Campus Partners”):
Completed forms can be faxed to Campus Partners at 336-607-2093 or mailed to:
c/o Campus Partners
PO Box 2901
Winston-Salem, NC 27102-2901