Undergraduate Entrance Loan Counseling
"Undergraduate Entrance Loan Counseling" submitted by SchoolGrantsfor Editorial Team and last updated on Monday 9th January 2012
Undergraduate Entrance Loan Counseling Will give you idea for:
- Education funding options
- Federal Stafford loan types & eligibility
- Rights & responsibilities
- Borrowing tips
- Delinquency & default
Explain the options available for financing your education and is required for each student borrower who is obtaining his or her first federal Stafford loan. Also review Stafford loan eligibility, your rights and responsibilities as a borrower, borrowing tips, repayment information, and how to avoid delinquency and default.
Funding your education
Explains sources of financial aid for college. Before applying for a loan, explore other ways to pay for college that do not require you to repay them back. Federal and state grants are one source of aid that you do not need to repay. (Explain your schools options.)
Your financial aid counselor, libraries and the Internet are good sources for scholarship information. Other sources may include your employer, your parents’ employers and/or civic and social organizations with which you or your family or friends are affiliated with. (Explain your schools options.)
In a work-study program, the money you earn from employment is used to help with your educational costs. Jobs are provided on- and off-campus, with hourly wages paid directly to you. (Explain your schools options.) Family members and friends may also contribute to your college fund. After pursuing other avenues of funding, you may consider a loan. In today’s workshop we will cover your eligibility and options for federal Stafford loans.
Eligibility Requirements For Federal Stafford Loans:
- Be a U.S. citizen or eligible non-citizen
- Have a valid Social Security number
- Register with Selective Service
- Maintain satisfactory academic progress
- Enroll in an eligible degree or certificate program
- Enroll at a participating college at least half time
- Not have any defaulted student loans
Each student seeking a Stafford loan must meet the following requirements. Review your school’s satisfactory academic progress and refund policies. Reviews general federal Stafford loan eligibility requirements.
Calculating Your Need
COA - EFC = Financial Need
Cost of Attendance (COA)
Also known as the cost of education or also known as the student budget, the total amount it should cost the student to go to school, including tuition and fees, room and board, allowances for books and supplies, transportation, and personal and incidental expenses. Find more about Cost of Attendance (COA)
Expected Family Contribution (EFC)
The amount of money that the family is expected to be able to contribute to the student's education, as determined by the Federal Methodology need analysis formula approved by Congress. Find more about Expected Family Contribution (EFC)
Reviews how financial need is calculated. How is your financial need for a Stafford loan calculated? Your financial need is calculate by subtracting the cost of attendance from your expected family contribution. Your financial need is the difference between the cost of attending school and the amount you and your family are expected to contribute. Cost of attendance refers to tuition and fees, room and board, books and supplies, transportation, personal expenses, possibly a computer and student loan fees if you borrow. Your expected family contribution is based on information from the Free Application for Federal Student Aid, the FAFSA. This calculation includes your and your parents’ income (if dependent), number in household, number in college, the amount of savings, investments and taxes due. Subtracting the school’s cost of attendance from your expected family contribution determines your need and the financial aid package you may be awarded.
Subsidized Stafford Loan
- Federal government pays interest
- In school
- During grace period (six months)
- During deferments
- Repayment is not required while in school
Provides an overview of subsidized Stafford loans. There are two types of federal Stafford loans: subsidized and unsubsidized. Subsidized Stafford loans are based on need and interest is paid by the federal government while you are in school at least half time, during your grace period and during periods of deferment. Repayment is not required while you are in school. But begins six months after you graduate, leave school or drop below half-time enrollment.
Unsubsidized Stafford Loan
- Not need-based
- You pay interest while in school
- Interest begins accruing at disbursement
- Pay interest as you go
- Capitalize interest
- Unpaid interest is added to the principal
- Increases total debt & monthly payment
Provides an overview of unsubsidized Stafford loans and loan capitalization. An unsubsidized Stafford loan is not need-based. You are responsible for paying the interest that begins accruing when the loan is disbursed. You have the option of paying the interest while in school or having interest capitalize. Capitalization is when the unpaid interest on your student loan is added to the principal, resulting in a higher total loan balance and possibly a higher monthly payment.
Interest Rates and Loan Fees
- Loans taken after July 1, 2006
- Subsidized Stafford – Fixed rate 6.8 percent
- July 1, 2008 interest rates will gradually reduce
- Unsubsidized Stafford - Fixed rate 6.8 percent
- Loans taken before July 1, 2006
- Adjusted annually even while in repayment
- Variable rate revised every July 1
- Interest rate cap of 8.25 percent
- One (1) percent origination fee
- One (1) percent default fee
Explains Stafford loan interest rates and fees. Student loan interest rates are fixed at 6.8% for loans taken after July 1, 2006. Stafford loans made to undergraduate students, with a first disbursement date on or after July 1, 2008 the interest rate on the subsidized Stafford will gradually reduce. Student loan interest rates are variable for loans taken before July 1, 2006 and adjusted annually every July 1, even while in repayment. Federal Stafford loans have an interest rate cap of 8.25 percent. (Insert current interest rate information to customize the slide.)
Federal Stafford loans also carry fees. A fee of up to two percent may be deducted from the amount borrowed—One percent for origination from the lender and a one percent default fee from the guarantor. Fees are subtracted from the loan before each disbursement, so you will receive a little less than the amount you applied for. For example, if you borrow $1,000, you will receive a disbursement of $975. However, you are still responsible for repaying the entire $1,000 originally borrowed.
Subsidized Interest Rates
|Only for Undergraduate Subsidized Stafford Loans||Rate|
|On or after July 1, 2008 and before July 1, 2009||6.00%|
|On or after July 1, 2009 and before July 1, 2010||5.60%|
|On or after July 1, 2010 and before July 1, 2011||4.50%|
|On or after July 1, 2011 and before July 1, 2012||3.40%|
|On or after July 1, 2012||6.80%|
Explains new undergraduate subsidized Stafford loan interest rates for the next 5 years. Legislation lowered interest rates for a five year period for undergraduate subsidized Stafford loans for both the FFEL and Direct loan programs.
Annual Stafford Loan Limits
|Academic Year||Base Subsidized (All Students)||Additional Unsubsidized (Dependent Students)*||Additional Unsubsidized (Independent Students)**||Maximum Subsidized & Unsubsidized||Estimated Monthly Payment on Maximum*||Estimated Total Amount|
|Third & Remaining Years||$5,500||$2,000||$7,000||$12,500||$144||$17,262|
*New loan limits for undergraduate dependent students (except students whose parents cannot borrow PLUS) effective July 1, 2008.
**New loan limits for undergraduate independent effective July 1, 2008.
Presents annual Stafford loan borrowing limits. Federal Stafford loans also have loan limits. The annual loan limit is the maximum you may borrow for a single academic year. (Review chart)
Aggregate Stafford Loan Limits
|Academic Year||Maximum Subsidized||Maximum Subsidized & Unsubsidized||Estimated Monthly Payment on Maximum*||Estimated Total Payment Amount|
*New loan aggregate limits for undergraduate students effective July 1, 2008.
**Assumes 6.80 percent interest rate and 10-year term
How many of you have previously borrowed? Do you know your total student loan indebtedness? Here presents total Stafford loan borrowing limits. It is important to recognize that federal Stafford loans also have aggregate loan limits. An aggregate loan limit is the maximum allowable unpaid principal balance you may borrow throughout your academic career. If you are planning to continue your education and borrow in the future, borrow wisely starting now to ensure you do not exceed total aggregate loan limits later. (Review chart.)
Key Industry Participants
- Financial aid office
- Federal government www.studentaid.ed.gov
- NSLDS www.nslds.ed.gov
- Credit bureaus www.annualcreditreport.com
- Ombudsman www.ombudsman.ed.gov Tel: 1.877.557.2575
Provides an overview of key industry players. Now that you know the types of federal Stafford loans available, let us review the players in the loan process. (Review counseling guide definitions.) Students can request a copy of their credit report from the 3 major credit bureaus once every 12 months.
Will be asked students to read a different industry players’ role from the counseling guide. Then supplement each description with your own information. (For example, review your school’s list of preferred lenders.)
Master Promissory Note
- Legal contract between you & your lender
- Loan amount is not disclosed on the MPN
- Signing a new MPN
- Change of lender
- Transfer to new school
- After 10 years
Provides an overview of the MPN.To apply for a federal Stafford loan, you must complete a Federal Stafford Loan Master Promissory Note, commonly know as the MPN. The MPN includes detailed information on the terms of your loan. By signing the MPN, you certify that you have read the information and understand the terms of the loan, including your rights and responsibilities as a borrower. It is also a contract between you and your lender promising that you will repay your loan. A new MPN may be necessary if you change lenders, transfer to a new school or after 10 years.
Rights and Responsibilities
- Receive a copy of your signed MPN
- Receive a disclosure statement
- Receive a six-month grace period
- Prepay all or part of your loan without penalty
- Deferments & forbearance, if eligible
- Written notice if your loan is sold
- Proof of discharge after repaying loan in full
Summarizes of Stafford loan borrowers’ rights. As a Stafford loan borrower, you have a number of important rights. When you accept a federal Stafford loan, you have the right to receive a copy of your signed MPN with the disclosure statement. You have the right to a six-month grace period before the first payment of your loan is due, and you may prepay all or any part of your unpaid balance on your loans at any time without penalty.
Under certain circumstances, you have the right to deferment and forbearance options. Should ownership of your loan be transferred, you will be notified of the name, address and telephone number of the new lender. Finally, you have the right to receive proof of discharge after you have repaid your loan in full.
- Repay your loan(s)
- Make on-time, monthly payments
- Read correspondence from lender
- Notify lender of changes within 10 days
- School & enrollment status
- Name, address & telephone number
- Complete exit interview before leaving school
Summarizes Stafford loan borrowers’ responsibilities. Accepting a loan means you accept legal and financial responsibilities until your loan is repaid in full. A student loan must be repaid regardless of whether you complete your program or get a job after graduation. You are also obligated to make on-time, monthly payments—even without notice from your lender—and read all correspondence regarding your student loan.
In addition, you must notify your lender within 10 days if you reduce your status to less than half time, withdraw from school, stop attending classes, fail to re-enroll for any term, change your expected graduation date, or change your name, address or telephone number. Finally, shortly before leaving school, you are required to attend exit counseling.
How Much to Borrow
- Calculate your income sources
- Work, financial aid, savings & outside assistance
- Calculate your expenses
- Tuition, books, housing, utilities, debt, transportation, food, clothing & entertainment
- Determine the difference
- Borrow only what you need!
Provides general information on budgeting and personal financial management.Calculating how much to borrow is an important step that will help you budget and plan ahead to make your repayment experience better. (Refer to budgeting worksheet in counseling guide.)
First, calculate your income sources—money from work, financial aid, savings and other outside sources. Second, calculate your anticipated expenses for the year—tuition, books, housing, utilities, debt, transportation food, clothing and entertainment. Next, subtract your total expenses from your income. What’s left? Now, only borrow what you need.
- Develop good money strategies
- Create a college spending plan
- Create a post-college spending plan
- Compare salaries
- Compare repayment options
- Find money saving tips
Introduces online financial planning guide such as EDWISE. EDWISE is one tool that provides all this information at your fingertips and is easy to use. EDFUND and UCLA developed the EDWISE® Online Financial Planning Guide in a collaborative effort to provide a useful loan management tool for students. Student loans help place the world of higher education within everyone's reach. While they open doors to exciting careers, they also pose the challenge of financial management.
Online tools can help you create a spending plan and calculate how much you should. Several Web sites offer tools for creating a college spending plan, tips for developing good money management strategies, ways to cut expenses, compare salaries and even repayment options. Students will be asked about their favorite online financial planning tools.
- Borrow conservatively
- Borrow from one lender
- Payments to one lender
- Keep copies of all documents in one place
- Track how much you borrow
- National Student Loan Data System (NSLDS www.nslds.ed.gov)
Provide students with the average student loan debt for students at your school or in the same program of study. Financial experts agree—borrow conservatively and from one lender throughout your academic years to simplify the repayment process and make payments to one lender. Also, keep copies of all your documents and keep them in one place for future reference. Finally, keep track of how much you borrow to avoid repayment surprises.
To track how much you borrow or find out who your lender is, visit the National Student Loan Data System, commonly know as NSLDS. This central database for the U.S. Department of Education's student financial aid programs contains a history of all your federal loans.
The Grace Period
- One-time grace period
- Six months
- Begins after you graduate, leave school or drop below half time
- Monthly payments begin when your grace period ends
Explains the grace period for Stafford loans. After you graduate, leave school or drop below half-time enrollment, you are entitled to a six-month grace period. Whether or not you are required to pay interest during this period depends on your type of loan. For subsidized loans, the federal government pays the interest during your grace period. For unsubsidized loans, you are responsible for paying all the interest. Do not forget payments are due the day after your grace period ends.
How many of you plan to relocate after graduation? Be sure to verify your lender has your address. Even if you do not receive a bill from your lender, you are still responsible for making each monthly payment.
National Student Loan Data System
- Central database for student aid records
- Track loans from disbursement to payoff
- Total student loan indebtedness
- Loan status & interest rate
- Request a PIN www.pin.ed.gov
Explains the availability of federal loan information online. How many of you know your total student loan debt?
Provide students with the average student loan debt for students at your school or in the same program of study. How much did you borrow while you were in school? One way to find out is to contact the financial aid office. Another way is to use the National Student Loan Data System, more commonly known as NSLDS. NSLDS is an online central database for the U.S. Department of Education's student financial aid programs, which contains a history of all your federal loans.
To access NSLDS, you must have a Personal Identification number or PIN. You can request a PIN by going to www.pin.ed.gov. After you successfully submit a request, the U.S. Department of Education will mail your PIN to you, usually within seven to 10 days. If you provide an e-mail address, you will receive an e-mail within three to five days explaining how to retrieve your PIN at a secured Web site. Be sure to keep your PIN confidential.
Repaying Your Student Loan
- Federal loans must be repaid
- Regardless of program completion or obtaining employment upon completion
- Five repayment plans
- Income-sensitive / Income-contingent
Provides an overview of loan repayment options. Your federal student loan must be repaid weather you complete your academic program or get a job after graduation. There are four options for repaying your student loan. (Review repayment plan definitions in the Insight or Outlook counseling guides.)
Your lender will automatically set you up under the standard repayment plan, unless you indicate otherwise. Take the time to compare repayment plans and find one that fits your finances. If necessary, you may change your repayment plan at least once a year to meet your financial obligations. You will receive more detailed information regarding repayment when you attend exit counseling.
Loan Repayment Chart
|Federal Stafford Loans (subsidized & unsubsidized)|
|Total Amount Borrowed||Number of Payments||Monthly Payments||Total Interest||Number of Payments||Monthly Payments||Total Interest|
Note: Interest rates on federal Stafford loans disbursed after July 1, 2006 are at a fixed 6.80 percent. Grad PLUS loans are fixed at 8.50 percent.
Illustrates sample monthly repayment amounts based on a range of loan amounts. Estimating your monthly payment is important. This chart illustrates sample monthly payments based on a range of student levels of amounts borrowed using a standard repayment plan. (Review chart.) However, your payment may be different depending on the plan you select and the current interest rate. Have students to estimate their anticipated monthly payment using the Loan Repayment Chart in Insight or Outlook counseling guides.
- Interest rate reductions
- Consecutive, on-time, monthly payments
- Sign up for automatic payment
- Ask your lender for details
- Tax credits
Provides an overview of repayment incentives. Most lenders offer incentives for responsible repayment behavior. Some lenders offer an interest rate reduction for consecutive, on-time monthly payments or for signing up for automatic payment. Lenders may also offer additional incentives.
In addition, you may benefit from annual tax credits, such as the Hope and Lifetime Learning credits. Student loan interest may also be deducted. For more information, read EDFUND’s Tax Benefits for Higher Education booklet or visit www.edfund.org or www.irs.gov.
How many of you use automatic payment for paying bills? Use this same benefit for making your student loan payment on time each month. For more information, check with your lender.
Avoid Delinquency and Default
- Pay on time
- A payment received one day late is considered delinquent
- Delinquent payments are reported to national credit bureaus
- Always call your school or lender for help
Provides tips for avoiding the consequences of delinquency and default. It is important to avoid becoming delinquent. One way is to make on-time monthly payments to your lender. A payment received one day late is considered delinquent and a lender may collect a late charge for each late installment. Delinquent payments are also reported to national credit agencies and will damage your credit for years to come. Your school or lender will help you if you have difficulty making your payments.
- Postponement of payments
- Not automatic
- You must apply & receive approval from lender
- Primary reasons
- Economic hardship
- Military service
Reviews deferment options. One option for avoiding delinquency and default is deferment. A deferment is a postponement of payments on your student loan. Deferments are not automatic; you must apply for one and receive approval from your lender. Your lender or guarantor can let you know if you are eligible for a deferment. Reasons for a deferment include returning to school at least half time, becoming unemployed or working less than 30 hours a week, economic hardship or military service.
When subsidized loans are deferred, the principal payments are postponed and the federal government pays the interest. When unsubsidized loans are deferred, the principal payments are postponed, but you are responsible for paying the accrued interest.
- Temporary reduction or postponement of payments
- Not automatic
- Must apply and receive approval from lender
- Primary reasons
- Poor health
- Residency program
- Financial hardship
- Interest will continue to accrue
Reviews forbearance options.If you do not qualify for a deferment but are having difficulty repaying your loans, you may be eligible for a forbearance. Forbearance is the temporary reduction or postponement of your monthly payment. Like a deferment, a forbearance is not automatic. You must apply and receive approval from your lender.
You are responsible for paying all accrued interest during the forbearance period. Common reasons for forbearance include poor health, a rigorous residency program or undergoing financial hardship. Remember, a forbearance often results in an extended repayment period which means you will pay more interest on your loan in the long run.
- Combine loans into one single new loan
- You agree to new terms & conditions
- One monthly payment
- Lower payment/longer repayment period
- Payments begin at consolidation
- Be informed
Reviews loan consolidation. In the future, you may consider loan consolidation which allows you to combine any or all of your outstanding federal student loans into a new single loan. When you consolidate you agree to new terms and conditions with that lender. Although you may have a lower payment, your repayment period may also be extended, costing you more in the long run and you may be giving u some of your benefits.
Consolidation is not for everyone. Before you choose to consolidate, talk to your lender about your options and get informed.
- In extreme circumstances:
- Total & permanent disability
- Inability to complete course of study due to school closure
- False certification by school
Reviews loan cancellation. A loan may be canceled under extreme circumstances.
Consequences of Default
- Full amount of loan is due
- Including collection costs
- Subject to federal & state offsets
- Wages and tax refund may be garnished
- Credit will be tarnished
- Loss of deferment & forbearance options
- Loss of eligibility for future financial aid
- May lose eligibility for certain federal or state jobs
- May lose professional license
Reviews the consequences of default. If you default on your loan, there are serious consequences.
Keys to Successful Borrowing
- Use other financial options before borrowing
- Understand your rights & responsibilities
- Borrow conservatively
- Borrow from one lender
- Keep copies of all documents in one place
- Track your total student loan debt
- Build good credit with timely payments
Provides the keys for successful borrowing. The keys to responsible borrowing are simple.
Challenges students By Quiz
Reinforce key concepts using true or false quiz and expand on concepts covered. Such as:
- I don’t have to pay back my student loan if I can’t find a job when I leave school. False
- Before I leave school or drop below half-time enrollment, I must complete student loan exit counseling. True
- I must notify my current loan holder within 10 days if I drop below half-time status, withdraw from school or transfer to another institution. True
- After leaving school, I am required to make monthly payments on my loan during periods of grace, forbearance or deferment. False
- I have the right to receive a disclosure statement–including interest rates, fees, loan balance, and size and number of payments–before the loan repayment term begins. True
- My borrower’s rights do not include the freedom to prepay all or part of my loans without any prepayment penalty. False
- I will be issued a deferment—temporary postponement of my loan payments—if I am eligible for it, apply for it and receive verification of accept-ance from my lender. True
- If I ever have trouble making my student loan payments, I should first call my current loan holder. True
- A master promissory note (MPN) is a legal document that reflects my promise to repay my student loan. True
- I do not need to complete a new MPN if I change lenders. False
- I should borrow the maximum loan amount. False
- I should borrow from more than one lender. False
- I should repay my student loans even if I fail to complete my education. True
- I should complete exit counseling before leaving school. True
Additional Slides for Customization
- For schools who want to incorporate the following during their loan counseling session:
- Perkins loans
- TEACH grant
- PUT program
The next five slides are optional. New HEOA regulations (signed into law on 08/14/2008) required schools to provide entrance and exit counseling to students receiving Perkins loans and/or TEACH grants.
- Campus-based program
- Exceptional financial need
- Federal government pays interest
- In school
- During grace period (nine months)
- During deferments
- No origination or default fees
- Fixed interest rate of 5%
Provides an overview of Perkins loans. The Perkins Loan is awarded to undergraduate and graduate students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government. It is a subsidized loan, with the interest being paid by the federal government during the in-school and 9-month grace periods. There are no origination or default fees, and the interest rate is 5%. There is a 10-year repayment period.
Perkins Loan Limits
|Academic Year||Annual Loan Limits||Cumulative Loan Limits||Estimated Monthly Payment on Maximum||Estimated Total Payment Amount|
Sign Denotes: *Cumulative is $60,000 for undergraduate and graduate loans combined.
Presents annual Perkins loan borrowing limits. http://ifap.ed.gov/dpcletters/attachments/GEN0812FP0810AttachHEOADCL.pdf page 139-140. Perkins loans also have loan limits. The annual loan limit is the maximum you may borrow for a single academic year. The amount of Perkins Loan you receive is determined by your school's financial aid office. (Review chart.)
Loan Limits: HEOA section 464 HEA section 464(a)(2)Effective date: August 14, 2008
Otherwise eligible students may receive the increased loan amounts beginning with any 2008-2009 award year payment period (where the first disbursement is made on or after July 1, 2008) that includes or begins on or after August 14, 2008. In addition to awarding the increased loan limits to students for the current and future payment periods, an any eligible payment period that has ended as long as the student is still enrolled for the 2008-2009 award year.
The new Perkins Loan annual and aggregate loan limits are as follows:
|GRADE LEVEL||ANNUAL LOAN LIMIT||AGGREGATE LOAN LIMIT|
|ONE AND TWO||$5,500||$11,000|
|THREE AND ABOVE||$5,500||$27,500|
- Will pursue a teaching career
- Agree to serve four years
- Full time and
- Highly qualified in high need field and
- School serving low income students
- Must sign agreement yearly
- If requirements are not met, funds converted to a Federal Direct Unsubsidized Stafford Loan
Provides an overview of the TEACH Grant. The U.S. Department of Education’s (the Department’s) TEACH Grant Program provides grant funds to postsecondary students who are completing or plan to complete coursework that is needed to begin a career in teaching, and who agree to serve for at least four years (within 8 years after completing the course of study) as a full time, highly qualified teacher in a high-need field, in a school serving low-income students. Example of high need field- mathematics, science, foreign language, bilingual or special education, plus more. Check with the Dept of Ed.
You must sign an Agreement each year before receiving a TEACH Grant. The Agreement is a legally binding document that defines the teaching service obligations you must meet and specifies your repayment obligation if a TEACH Grant that you receive is converted to a Federal Direct Unsubsidized Loan.
If you receive a TEACH Grant but do not complete the required four years of teaching service within eight years after completing the coursework for which you received the grant, or if you otherwise do not meet the requirements of the TEACH Grant Program, all TEACH Grant funds that you received will be converted to a Federal Direct Unsubsidized Stafford/ William D. Ford Loan (Direct Unsubsidized Loan). This must be repaid in full, with interest that has been accruing since the time you received the funds, to the Department. Once a TEACH Grant is converted to a loan, it cannot be converted back to a grant.
TEACH Grant Limits
|Academic Year||Annual Grant Limits||Cumulative Grant Limits||Estimated Monthly Payment on Maximum*||Estimated Total Payment Amount*|
|Undergraduate & Post -baccalaureate||$4,000||$16,000||$184||$22,095|
Sign Denotes: *Estimated monthly payment and total loan pay off based on 6.8% and 10 year term. Assuming all grant converted to Federal Unsubsidized Stafford Direct loan.
Presents TEACH Grant limits. Eligible full-time students may receive $4,000 per year in TEACH Grant funds, up to a maximum of $16,000 for undergraduate and post baccalaureate study, and $8,000 for graduate study.
TEACH Grant Resources:
- Teach Grant Counseling
- Requirements for highly qualified teacher status online
- Loans can be PUT any time after they are fully disbursed and before September 30 of the applicable AY
- Loans PUT with the Department of Education Student Loan Servicer
- Will affect loans fully disbursed during
- 2008/09 and,
- Multiple servicers during repayment
- Check NSLDS
- Will affect loans fully disbursed during
Provides an overview of Put loans. Due to the Ensuring Continued Access to Student Loans Act of 2008 (Pub. Law 110-227) (ECASLA), the loan servicing for selected FFELP loans are being transferred to the Department of Education Student Loan Servicer, ACS. The purpose of the program is to provide lenders with the means to continue offering student loans to students.
It may be possible that some of your loans will be sold during the loan purchase program time frame. You may then have multiple servicers during repayment. You will need to make sure you keep track of all loans borrowed and keep any documentation you receive from your lenders/servicers. You may also want to check NSLDS to view any updates on your Federal Student Loans as a way to keep track of your loans. This will effect Stafford subsidized, unsubsidized and PLUS loans in the 2007/08, 2008/09 and 2009/10 academic years.
PUT Loans Repayment
- Welcome Letter
- Balance of PUT Loan
- Contact information
|Fedloan Servicing (PHEAA)||800.699.2908||www.myfedloan.org|