DEFAULT PREVENTION Repayment Plan Options Terms You by liaoqinmei


Terms You
 Should Know                                            Repayment
                                                         Plan Options
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
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

                                                                                                                     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                
                                                             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
                                                               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
                                                               a forbearance.
  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.
                                                               your loans.

 • 1.800.525.2577                                                                       

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