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Loan Consolidation and Repayment Options_

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					Information for Students on Loan Consolidation and Repayment Options: Because there have been many changes in repayment terms and consolidation of loans in the past 2 years, the School wanted to give you some information about what might be available to help you in planning for repayment of your loans. Loan Consolidation: The Direct Loan program under the federal government still does offer a loan consolidation program. To qualify for a Direct Consolidation Loan, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan. Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least,  One FFEL Loan in the consolidation and have been unable to obtain a Federal consolidation Loan with a FFEL lender Or  Have been unable to obtain a Federal Consolidation Loan with income – sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program. If you would like more information on the above, here is how to contact them: Apply on line: https://loanconsolidation.ed.gov. Telephone: 1-800-557-7392 E-mail: loan_consolidation@mail.eds.com

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Loan Repayment Options: Most banks/lenders offer some different repayment options for the repayment of your student loans. Below are the 4 most frequently used loan repayment options, but students should always check with their lenders to be sure of what they offer as each lender is different.  Standard Repayment Plan option: With this plan, you pay the same amount every month on a fixed rate for your student loan for the life (normally 10 years) of the loan.  Extended Repayment Plan option: An extended repayment plan reduces your monthly loan payments by spreading them over a period of up to 25 years. Since payments are stretched over a longer term, total interest costs are higher when compared to the Standard Repayment plan. There is no penalty for early payment on this option.  Graduated Repayment Plan option: With a graduated repayment plan, you make interest only payments for the first two to four years, or pay a $50.00 a month, whichever is greater. After the initial period of lower payments, your payments will increase to include principal and interest for the rest of the term of the loan.  Income-Sensitive Repayment Plan option: Under an income-sensitive plan, you have the option to request a specific monthly payment amount. This payment must be at least equal to the monthly interest due on your loans or 1% of your gross monthly income, whichever is greater. This plan is designated for a 12 month period and must be renewed on an annual basis.

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