ENTRANCE INTERVIEW COUNSELING FOR FEDERAL STAFFORD LOANS
PLEASE REVIEW THE FOLLOWING STATEMENTS:
Interest rate: fixed rate is 6.8% . For Undergraduate students the fixed rate is 6.0% on the Subsidized loan when you borrow a loan from 7/1/2008 through 6/30/2009.
Subsidized loans: The government will pay the interest while you are in school and for authorized deferment periods when you leave school.
Unsubsidized loans: You are responsible for the interest accruing on the Unsubsidized loan while in school. You may pay the interest while in school as it accrues, or add this interest to the amount you borrowed and repay after you leave school.
No payments are required while you are enrolled at least half-time (6 credit hours per semester) .
When you graduate or leave school you have a 6 month grace period before repayment begins.
Standard repayment term is 10 years. Extended repayment options beyond 10 years are also available.
Minimum monthly payment is $50.00
Your lender may sell your loan or use a servicer to manage your account and must notify you of the name, address and telephone number of the new lender.
YOUR RESPONSIBILITIES:
Borrow only what you need and what you can afford to repay. You may reduce or cancel your loan at any time before you receive the loan funds.
Keep track of your lender’s name, address and phone number. You must notify your lender if you change your name, address, phone number , social security number, references, or driver ’s license.
Keep records of the loans you receive, especially the promissory note and any loan information you receive from your school or lender.
You must notify your lender any time you drop to ‘less than half-time enrollment’ (6 credit hours) or change schools.
You have the right to defer repayment of your loan in certain circumstances, such as unemployment. You would contact your lender for your eligibility on these ‘deferment’ options.
You may reduce your monthly payment if it is not affordable. You would contact your lender for your ‘repayment’ options.
You must repay your loan, plus interest, even if you do not complete the program, you are unable to obtain employment after you complete it, or you are dissatisfied with or do not receive the educational or other services you purchased from the school.
Failure to repay your loan will place you in ‘default’. Defaulting on your student loan can result in:
Damage to your credit rating
Garnishment of your wages
Withholding of your federal and state refund
Lawsuit
Liability for court costs/legal expenses
Loss of deferment entitlements
Loss of eligibility for further financial aid
Referral of account to a collection agency
If you would like clarification regarding any of the statements listed above or have questions regarding this process, please feel free to contact the Financial Aid Office at 464-4329.
I HAVE REVIEWED EACH STATEMENT AND UNDERSTAND MY RESPONSIBILITES:
