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.

Repayment Options

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.

Deferment/Forbearance Options

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.

Loan cancellation

 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:

Default

https://studentaid.ed.gov/repay-loans/default

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. 

Loan Consolidation

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.

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:

https://studentaid.ed.gov/types/loans/Perkins

How to repay:

https://studentaid.ed.gov/repay-loans

The lender for your Federal Perkins Loan is Gonzaga University; however payments will be made to a billing service, Campus Partners.

https://www.mycampusloan.com/

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)

https://www.mycampusloan.com/static/html/infocenter/cancellation.htm

FAQ about Perkins Loan Cancellation:

https://www.mycampusloan.com/static/html/infocenter/faq_5.htm

Total and Permanent Disability:

https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/disability-discharge

Deferment/Forbearance:

What are they?

https://studentaid.ed.gov/repay-loans/deferment-forbearance

https://www.mycampusloan.com/static/html/infocenter/deferment.htm

Forms to request a Deferment/Forbearance (select the form that says “Use this form if you normally send your payments to Campus Partners”):

https://www.mycampusloan.com/static/html/forms/index.html#three

Completed forms can be faxed to Campus Partners at  336-607-2093 or mailed to:

Gonzaga University
c/o Campus Partners
PO Box 2901
Winston-Salem,  NC   27102-2901

Default:  https://studentaid.ed.gov/repay-loans/default

Consolidation:

https://studentaid.ed.gov/repay-loans/consolidation

Pros/Cons:

http://www.usnews.com/education/blogs/student-loan-ranger/2014/09/17/why-Perkins-loans-borrowers-should-think-twice-before-consolidating

FINANCIAL AID OFFICE
502 E. Boone Avenue
Spokane, WA 99258-0072
College Hall, Room 129

Hours: Mon., Tues., Thurs., Fri.: 8AM - 5PM; Weds.: 9:30AM - 5PM
Phone: (509) 313-6582
Toll Free: 1 (800) 793-1716
Fax: (509) 313-5816
Email: finaid@gonzaga.edu
www.gonzaga.edu/financial-aid