Starting Repayments

Approximately 30-45 days from the last day of your grace period, your first payment will be due. You will receive a repayment schedule during your grace period that will disclose payment amounts, due dates and the period of time you will be paying.

What is the difference between subsidized and unsubsidized loans?

Subsidized Stafford Loans (Undergraduate Only)

Subsidized Stafford Loans are awarded to students with demonstrated financial need. Interest is subsidized (paid) by the government while the student is in school and during the six-month grace period after the student leaves school or drops below half-time enrollment status*. Loans enter repayment at the end of the grace period.
*Interest will be charged during the six-month grace period for subsidized loans disbursed between July 1, 2012 and June 30, 2014.

Unsubsidized Stafford Loans (Undergraduate/Graduate)

Unsubsidized Stafford loans are available to all students regardless of income. Interest accrues from the date of disbursement, but the extra costs of accrual can be avoided by making regular interest payments while in school. Any interest that is unpaid when repayment begins will be capitalized and added to your principal balance, increasing the total loan amount you must repay. Loans enter repayment six months after the student graduates or ceases half-time enrollment.

Capitalization occurs if you choose not to pay the interest that is accruing on an unsubsidized loan during such periods. When capitalizing, the unpaid interest is added to the loan principal, increasing your total outstanding balance.

What is principal and interest?

Principal is the amount you borrowed. Interest is a fee charged to you for use of the loan money, calculated as a percentage of the principal of the loan and paid over a specified time.

Grace Period

The federal student loan “grace period” begins the day after you graduate, leave school, or drop below half-time enrollment. Federal Stafford loans have a six-month grace period; other federal student loans may have longer or shorter grace periods.

Payments are not required during the grace period; however, you may wish to pay the interest that accrues during this period. Any interest that is unpaid when repayment begins will be capitalized and added to your principal balance, increasing the total loan amount you must repay. Note: interest is charged on unsubsidized loans during the grace period, but not on subsidized loans.*

*Interest will be charged during the grace period for subsidized loans disbursed between 7/1/2012 and 6/30/2014.

Repayment Options

Standard Repayment:

With the standard plan, you'll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you'll have up to 10 years to repay your loans.

The standard plan is good for you if you can handle higher monthly payments because you'll repay your loans more quickly. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time. For the same reason—the 10-year limit on repayment—you may pay the least interest.

Extended Repayment:

To be eligible for the extended plan, you must have more than $30,000 in Direct Loan debt and you must not have an outstanding balance on a Direct Loan as of October 7, 1998. Under the extended plan you have 25 years for repayment and two payment options: fixed or graduated. Fixed payments are the same amount each month, as with the standard plan, while graduated payments start low and increase every two years, as with the graduated plan below.

This is a good plan if you will need to make smaller monthly payments. Because the repayment period will be 25 years, your monthly payments will be less than with the standard plan. However, you may pay more in interest because you're taking longer to repay the loans. Remember that the longer your loans are in repayment, the more interest you will pay.

Graduated Repayment:

With this plan your payments start out low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.

Income-based Repayment (not available for Parent PLUS loans):

Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.

Income Contingent Repayment (Direct Lending only and does not apply to PLUS loans):

This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

1. The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
2. 20% of your monthly discretionary income.

If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized.

The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.

What is a loan servicer, and how do I contact them?

A loan servicer processes student loan bills, payments, deferments, and provides other administrative services. To find your loan servicer, please visit www.nslds.ed.gov.

How do I contact the Direct Loan Program or find additional information?

To receive a Personal Identification Number (PIN) required signing your FAFSA or Master Promissory Note (MPN):
www.pin.ed.gov.

For Direct Loan Entrance Counseling (new borrowers at UCCS):
www.studentloans.gov

To access and sign your Master Promissory Note (Stafford and PLUS loans):
www.studentloans.gov
1-800-557-7394

Federal PLUS Loan Credit Appeals and Endorser Applications:
www.studentloans.gov
1-800-557-7394

To access your personal account information:
myedaccount.com

Are Perkins and Stafford Loan repayment statements together in one bill?

No, you will receive a separate bill for each loan program. The Perkins Loan is administered by the UCCS Loan Disbursement office.

What if my grace period expires before I go on to graduate school?

When your grace period expires, payment is due. In order to suspend your payments, the school where you obtained your Perkins Loan(s), as well as your federal loan servicer that administers your Stafford Loan(s), must receive verification of your enrollment.

What do I do if I can't make my loan payments?

You may request forbearance, an unemployment deferment, or an economic hardship deferment to obtain a temporary cessation of your payments. Contact the holder of your loan(s). The loan holder will determine your eligibility.

How do I file a student deferment?

Procedures for filing a student deferment for campus-based loans differ from procedures for your federal loan servicer. For campus-based loans, acquire a deferment form from the school where you obtained the loan; for federal loans, please contact your loan servicer.

For more information about how to file a deferment and forbearance please go to myedaccount.com or www.studentloans.gov

Is there a penalty for prepayment of my student loans?

Your federal student loans may be prepaid or paid in full at any time without penalty. You may decide to shorten the repayment period of your loan by making extra payments or paying more than the minimum amount billed. By taking these actions, you will also reduce the total repayment amount for your loan. (NOTE: Private loans may have different terms and conditions; please refer to your promissory note or contact your loan servicer for details.)

What is loan consolidation?

Stafford loan consolidation allows a borrower with multiple federal student loans to combine them into a single loan with one interest rate and repayment schedule. The interest rate for the consolidation is the "weighted average" of the interest rates on the loans being consolidated and is fixed for the life of the loan.

Are you having trouble making payments?

If you're having difficulties making payments on your loans, contact the Direct Loan Servicing Center as soon as possible. The Direct Loan Servicing Center staff will work with you to determine the best option for you. Options include:

• Changing repayment plans
• Deferment, if you meet the eligibility requirements. A deferment allows you to temporarily stop making payments on your loan.
• Forbearance, if you don't meet the eligibility requirements for a deferment but you are temporarily unable to make your loan payments. Forbearance allows you to temporarily stop making payments, or extend the time for making payments.