As a student borrower, you are entitled to:
As a student borrower, you have the right to:
Acceptance of an educational loan requires:
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.
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. For more information click here
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.
For more information about loan consolidation under the Federal Direct Loan Program:
A deferment is a period in which a borrower is allowed to postpone payments on the loan principal. The interest accrues and is capitalized if the borrower has an unsubsidized Stafford Loan. You are required to make payments on your Stafford loan until all deferment documentation is complete and has been approved by your loan servicer. The following types of deferment are available:
Should you become financially unable to make monthly payments, you may be able to to delay or reduce monthly loan payments for a short period of time at the discretion of your loan servicer.
If you do not make a payment on time, you are then considered delinquent. Default occurs when a Federal Student Loan borrower becomes 270 days delinquent in making a loan payment. There are several consequences that will result if you default on your federal student loan:
For more information about default click here.
Developing good financial health while in college will help you manage your student loan debt when you leave school. Healthy money management while in school involves setting goals and developing and following a budget that will help you meet your goals and minimize loan debt.
Please feel free to visit: www.direct.ed.gov/BudgetCalc/budget.html for a comprehensive budget calculator.
Please contact your loan servicer for more information regarding Stafford loan repayment. Most UCCS students that borrowed loans prior to August 2010 are serviced with Nelnet. If you borrowed a Stafford loan starting August 2010, your loans will be serviced by the Department Of Education's Direct Loan Program.
If you would like to know how many loans you have and who your loan servicers are, please visit the National Student Loan Data System (NSLDS) website at: www.NSLDS.ed.gov