Should Know Repayment
Default - Failure to repay your education loan. Which plan is right for you? Contact NHHEAF for
assistance in making the right choice for your
Deferment - A period when a borrower, who meets
situation and for complete qualifying details.
certain conditions, may suspend loan payments.
Delinquency - Failure to make scheduled payments. Standard
Fixed monthly payments over a ten year period.
Forbearance - A temporary suspension or reduction
of scheduled payments. Graduated
Payments start off lower and gradually increase over
Federal/Direct Graduate/Professional PLUS Loan - A a ten year period.*
loan program for graduate and professional students.
Interest - An amount charged for borrowed money, Lengthen your repayment period up to 25 years if you
calculated as a percent of the principal loan amount. have a minimum of $30,000 in federal student loans.*
Lender - Provides the funding when you borrow Income Sensitive
a loan. Payments adjust annually based on your income. You
Federal/Direct PLUS Loan For Parents - A loan program may remain in this plan for up to 5 years, if you qualify.
for parents of dependent undergraduate students. The loan must be repaid over a ten year period.*
Principal - Amount you borrow and upon which you Income Based
pay interest. Payments may be reduced to 15% of your
discretionary income. The repayment term can be
Get The Facts!
Promissory Note - Contract between you and your extended up to 25 years.*
lender in which you promise to repay your loan.
*Interest costs may be higher over the life of the loan.
Servicer - Organization designated to administer
and collect your loan.
Federal/Direct Subsidized Stafford Loan - A federal
loan based on financial need. The government For more information on
pays the interest on the loan prior to repayment deferment types for the
and during authorized deferment periods. Federal Family Education Loan Program (FFELP)
Federal/Direct Unsubsidized Stafford Loan - A visit www.gsmr.org.
federal loan available to student borrowers. For more information on
Borrowers are responsible for all interest from the Direct Loan deferment types
time of disbursement until the loan is paid in full. visit http://studentaid.ed.gov.
4 Barrell Court • Concord, NH 03301
T 800.525.2577 • F 603.224.5403
What Don’t Know
is How Can What to
Default I Avoid Do Next?
Default occurs when a borrower persistently fails to We’re here for you. Call NHHEAF.
make timely payments on their loan as required, to Managing your student loan debt can be
provide documentation or to notify the lender of
overwhelming. If you find yourself in need
other relevant conditions that cause them to be
unable to pay their loans.
of assistance, please contact us.
Monday - Friday:
How may default affect me? Counseling 8 a.m. - 5 p.m.
The NHHEAF Default Prevention Team provides with voicemail access after hours.
Defaulting on your student loan is a serious matter
and may cause numerous problems for you solutions to assist borrowers in managing their student 1.800.525.2577
including: loan debt so that they can meet their financial firstname.lastname@example.org
obligations. We are here to assist you in the successful
Withholding of Federal Tax Refund. Instead of repayment of your student loans. Paying Your Bill Has Never
receiving your federal income tax refund, you’ll Been So Easy!
receive a notice from the Department of Treasury There are several options available to help you
telling you that your refund may be applied to the manage your account: Here are the payment options
balance of your defaulted loan. Communication - Keep NHHEAF up-to-date with available to you:
Wage garnishment. Your employer may be any name, address or phone number changes.
required to deduct between 10-15% of your pay Payment - Make a payment today. If you don’t
from every paycheck and forward that amount know how much to pay, contact NHHEAF. Pay Online
to the holder of your defaulted loan until it’s paid (Convenience fee applies)
Deferment - If you have gone back to school, are
in full. Pay by Telephone
unemployed or are experiencing limited income, (Convenience fee applies)
Consequences of a damaged credit history. Bad you may qualify to suspend payments for a period
credit may result in banks charging you higher of time. For more information
interest rates on credit cards and car or mortgage log on to www.nhheaf.org.
Forbearance - If you don’t qualify for a deferment,
loans. It may also impact your ability to get a
you may still be able to suspend payments with
new job because many employers look at credit
ratings when making hiring decisions.
Repayment Plans - If you are having difficulty
Responsibility for collection costs. The addition of
making payments under your current plan, there
collection costs may dramatically increase the total
may be a plan that will better suit your needs.
amount required to pay a defaulted loan in full.
There are several plans available to you.
Loss of eligibility for additional student loans. If you
Consolidation - If you have a sizeable student
decide to return to school, you’ll need to take
loan debt or make multiple payments to different
care of your defaulted loans before you can get
lenders, you may want to consider consolidating
any new student loans.
www.nhheaf.org • 1.800.525.2577 www.nhheaf.org