Student Loan Support Services

Loan Repayment, Rights, and Responsibilities

As a federal loan borrower, you have certain rights and responsibilities associated with repaying your federal loans. It is your responsibility to repay your loans even if you do not complete your academic program, are dissatisfied with the education you received or are unable to find employment after graduation. 

Before your leave school, drop below half time, or withdraw from all your courses in a term, you are required to complete exit counseling.

Federal student loans offer fairly flexible repayment terms, including 10-year fixed repayment, graduated repayment, or income-based repayment for up to 25 years. To find out more about repayment options for Federal Direct Loans, contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243), or visit Direct Loans.

Federal loans offer other benefits. For example, students working in public service or in the military may be eligible for loan forgiveness. Or, if students have special circumstances, such as going back to school, losing a job, getting married, or having a child, they may be able to apply for forbearance or deferment. Check with the servicer for details.

Don't know who your servicer is? Visit the National Student Loan Database and log in with your Federal Student Aid username to view a comprehensive history of your student loan activity.

If you need additional help, please contact Student Loan Support Services at studentloansupport@domail.maricopa.edu or by calling 480-784-0600. 

Loan Repayment Resources

      Federal Loan Repayment Plans and Repayment Calculators

      Student Loan Defaults Facts and Repayment Tips for Struggling Borrowers

Student Loan Exit Counseling

What is Exit Counseling?

Exit counseling provides important information to prepare you to repay your federal student loan(s).

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you:

• Drop below half-time enrollment
• Graduate
• Leave school

Note: The FFEL Program ended June 30, 2010 and no new loans have been made under the FFEL Program after that date.

Complete Exit Counseling- HERE

Manage your Loans

Accumulating debt can be a good thing as successful debt management can help bring up your credit score.  On the other hand, debt can also be very stressful.  To help avoid stress when you are taking out loans follow these tips:

Communicate with Your Lender

Whenever anything changes about your life that may affect your loan, make sure you notify your lender right away. For instance, if you are moving, let them know your new address or if you have graduated college. Likewise, let your lender know if you have dropped out of school or plan on transferring to a different school. It is vitally important to let your lender know anything and everything that may affect your ability to repay your loan. It would be unfortunate if you went into default because you did not receive your bill!

When do I begin repaying my federal student loan?

You do not have to begin repaying most federal student loans until after you leave college, drop below half-time enrollment or stop attending college for more than a semester. However, PLUS loans enter repayment once your loan is fully disbursed (paid out).

Your loan servicer or lender must provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment. Keep in mind that your loan may have a grace period.

Grace Period

What is a grace period?

The grace period is a set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan. The grace period gives you time to be financially settled and to select your repayment plan. Not all federal student loans have a grace period. Note that for most loans, interest will accrue during your grace period.

• Direct Subsidized Loans, Direct Unsubsidized Loans, Subsidized Federal Stafford Loans, and Unsubsidized Federal Stafford Loans have a six-month grace period before payments are due.
• PLUS loans have no grace period. They enter repayment once they are fully disbursed but may be eligible for a deferment. Contact your loan servicer for more information.
• If you received a Federal Perkins Loan, check with the school where you received your loan.

Can my grace period change?

Circumstances that may change your grace period include the following:

• Active duty military—If you are called to active military duty for more than 30 days before the end of your grace period, you will receive the full six-month grace period when you return from active duty.
• Returning to school before the end of your loan’s grace period—If you reenroll in school at least half-time before the end of your grace period, you will receive the full six-month grace period when you stop attending school or drop below half-time enrollment (other conditions apply).
• Loan consolidation—If you consolidate your loans during your grace period, you will give up the remainder of your grace period and begin repayment after your Direct Consolidation Loan is disbursed (paid out).  Your first bill will be due approximately two months after the Direct Consolidation Loan is disbursed.

Repayment of Student Loans

You will learn:

• What type of repayment options are available
• How to make repayments to your student loans
• How to enroll into student loan repayments

Unable to Pay?  Consider Deferment or a Forbearance

One way to avoid default is to apply for student loan deferment or forbearance. This helps to postpone your loan payments until you can afford to do so once again. However, you will need to plan ahead. While you are still making payments, ask about deferment. I know it can be hard to foresee circumstances that could prevent you from making timely payments, but as soon as you know something will interfere, let your lender know. That way, they can do their best to help you come up with an alternative repayment plan.

Make Special Arrangements If You Can

If deferment is not an option or if you can afford to make payments but just not in the same amount as before, talk to your lender about different repayment options such as income sensitive repayment. These options make repaying your loans much easier, especially during a time of financial struggle. Again, many people go into default because they did not know they had any other option. However, if you knew you could lower your monthly payments, then wouldn't you do it to avoid default?

If you need additional help, please contact Student Loan Support Services at studentloansupport@domail.maricopa.edu or by calling 480-784-0600. 

Consolidate Your Student Loans

Another way to avoid going into default is to consolidate your student loans. If you have taken out more than one loan over the course of your college career, you may be faced with many bills that are all due around the same time each month. By consolidating your loans, you can have just one loan payment each month. You might even be able to extend the repayment time on your student loans making your monthly payments smaller. This is one of the best ways to avoid defaulting on your student loans if your payments were just too high before.

Why do Student Loan Defaults Happen?

Student loan defaults happen for a variety of reasons. Sometimes misinformation or a lack of money to repay the student loans are reasons a student defaults on their loans. Borrowers may also move without sending new contact information to their lender or loan servicer so they never receive repayment information. Some borrowers believe that if they did not complete their degree or if they cannot find a job, they do not have to repay their student loans.

Regardless of your situation, student loans must be repaid or other arrangements must be made with your lender or loan servicer to prevent default.

What Does It Mean to Default On Your Loan?

When a student loan has gone into default, it means that the borrower has failed to make payments on time. This does not mean missing one or two payments. This means that you have failed to make payments for 270 days consecutively.

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Defaulting on Student Loans

Student loan defaults happen for a variety of reasons. Usually misinformation or lack of money to repay their student loans. Sometimes borrowers move without sending new contact information to their lender or loan servicer so they never received repayment information. Some borrowers believe that if they did not complete their degree, or if they cannot find a job, they do not have to repay their student loans.

Regardless of your situation, student loans must be repaid or other arrangements must be made with your lender or loan servicer to prevent default.

Consequences of Defaulting On Your Loan

You already know that defaulting on a loan is bad, but do you know how bad? Just look at some of the consequences:

• A collection agency will take over your loans
• Legal fees and late fees will be added to the loan amounts you owe
• You could be sued
• Your wages from working may be garnished
• Your federal income tax returned may be kept to offset your student loan debt
• Social Security benefits could be withheld.
• Future federal loans are out of the question.
• Deferments are no longer an option
• It could prevent you from getting credit cards, auto loans, a mortgage, or even a job.

The experience of having a student loan should be a positive one. You get to pay back your debt, build your credit, and make your first venture out into responsible adulthood. Going into default is not the way to do this. In fact, it may very well set you back for years because of it. Don’t let limited funds ruin your credit. There are alternatives to default, some of which might even improve your credit!  Please let us help by contacting Student Loan Support Services at studentloansupport@domail.maricopa.edu or by calling us at 480-784-0600.

Federal Direct Loan Repayment Plan

You may choose one of the following repayment plans to repay your loan.  If you do not choose a repayment plan, you will automatically be placed on the standard repayment plan.  You may be able to change your repayment plans after you begin repaying your loan. For more information about these plans and to calculate your estimated monthly payments under each plan, visit Federal Student Aid’s guide to repaying loans.

• Standard Repayment Plan: You will make fixed monthly payments over a period of 10 years.  Your minimum payment will be $50 per month or more depending on how much you borrowed. 
• Graduated Repayment Plan: Your payments will start lower and gradually increase, usually every two years, over a 10-year period.
• Extended Fixed Repayment or Extended Graduated Repayment Plan: You will make fixed or graduated monthly payments and repay your loan in full over time, not to exceed 25 years.
• Income-Based Repayment Plan: Your required monthly payment will be based on your income during any period when you have partial financial hardship.  Your monthly payment may be adjusted annually.

How To Identify a Student Loan Scam

Here are some signs to help you identify a scam by a student loan debt relief company:

• They require you to pay up-front or monthly fees for help. It is illegal to charge an up-front fee for this type of service, so if a company requires a fee before they actually do anything, that’s a huge red flag—especially if they try to get your credit card number or bank account information. In some cases, they may even step in and ask you to pay them directly, promising to pay your servicer each month when your bill comes due. Free assistance is available through your federal loan servicer.
• They promise immediate and total loan forgiveness or cancellation. No one can promise immediate and total loan forgiveness or cancellation. Most government forgiveness programs require many years of qualifying payments and/or employment in certain fields before your loans can be forgiven. Also, student loan debt relief companies do not have the ability to negotiate with your federal loan servicer for a “special deal” under the federal student loan programs. Payment levels under income-driven payment plans are set by federal law.
• They ask for your FSA ID. ED or its partners will never ask you for your FSA ID password. Your FSA ID is used to sign legally binding documents electronically. It has the same legal status as a written signature. Do not give your FSA ID password to anyone or allow anyone to create an FSA ID for you. If a company has access to your FSA ID information, they can make changes to your account without your permission.
• They ask you to sign and submit a third-party authorization form or a power of attorney. These are written agreements giving the third party legal permission to talk directly to your federal loan servicer and make decisions on your behalf. Debt relief companies often want these authorizations so that they can change your account and contact information, so you don’t realize that they aren’t actually paying your monthly student loan bill.
• They claim that their offer is limited and encourage you to act immediately. Student loan debt relief companies often try to instill a sense of urgency by citing “new laws” or discontinuing programs as a way to encourage borrowers to contact them immediately. While there are some deadlines you need to meet in regards to your student loans—for instance, if you’re paying under an income-driven repayment plan, you need to recertify annually—our programs are limited only by the eligibility requirements.
• Their communications contain spelling and grammatical errors. While many of the communications sent out by these companies look very formal (for example, fold-and-tear letters with safety patterns), they often contain spelling and grammatical errors. If you notice unusual capitalization, improper grammar, or incomplete sentences in the communication you receive, that’s likely a red flag that the company is not affiliated with ED.

For more signs on identifying a student loan scam, visit the Federal Trade Commission’s website.

What do I do if I’ve already shared my information or paid one of these student loan debt relief companies?

You need to complete the following tasks:

• Log in and change your FSA ID. Do NOT share your new FSA ID password with anyone!
• Contact your federal loan servicer to revoke any power of attorney or third-party authorization agreement that your servicer has on file. You should also make sure no unwanted actions were taken on your loans.
• Contact your bank or credit card company, and request that payments to the company be stopped.
• File a complaint with the FTC.
• File a report of suspicious activity through the Federal Student Aid Feedback System.

How do I change my FSA ID password?

Go to the “Manage My FSA ID” tab on the FSA ID site and log in using your username and password. Once logged in, click the “Change My Password” link. You’ll be prompted to enter your current password and choose a new password. Be sure to keep track of your new password and do not share it with anyone! If someone has access to your FSA ID information, they can make changes to your account without your permission.

If you cannot log in because you do not know your current username and/or password, go to the “Manage My FSA ID” tab on the FSA ID site and click “Forgot My Username” or “Forgot My Password” to retrieve it.

Note: To retrieve your username or password, you’ll either need to have a code sent to your mobile phone or your email address, or you’ll need to answer your challenge questions. If a student loan debt relief company had access to your FSA ID, it’s possible that they may have changed the email address or phone number associated with your account. If you don’t have access to or haven’t verified the mobile phone number or email address associated with your FSA ID, and you don’t know the answers to your challenge questions, you will have to contact the Federal Student Aid Information Center. An agent will walk you through self-service options. If that does not resolve the situation, you will go through the FSA ID verification process. You’ll send in copies of identification, and the email address on your account will reset to one you can access. This process takes 7–10 days from the point at which you send in your documentation.

Are there legitimate private companies that ED works with?

Yes. There are private companies (lenders, servicers, and private collection agencies) that work on behalf of ED.

ED contracts with loan servicers who handle the billing and other services on your federal student loans. Your federal loan servicer will work with you on repayment plans and loan consolidationand will assist you with other tasks related to your federal student loan. Find a list of our loan servicers here. If you’re not sure who your loan servicer is, log in to “My Federal Student Aid” to find contact information for the loan servicer or lender for your federal student loans.

ED also works with private collection agencies (PCAs) to get federal student loan borrowers out of default and ensure defaulted borrowers are aware of their options. Here's a list of PCAs that work with ED. If you’re in default, please contact ED’s Default Resolution Group for personalized assistance at 1-800-621-3115.

These lenders, servicers, and PCAs are affiliated with ED and can be trusted, so you should contact them if you need assistance.

Where can I go for free help?

If you have questions or need help with your student loans, contact your loan servicer or lender for FREE assistance.

Tips for Successful Repayment

• Make sure you have all your loan records organized.
• Know the amount of your student loan payments.
• Include student loan payments in your budget.
• Know when your loan payments begin.
• Contact your loan holder immediately if you are having trouble making your monthly payments.
• Complete the Exit Interview and complete the required forms, your contact information will be updated with your lenders, and you will be less likely to go into default. Make sure you keep your contact information updated with all of your lenders directly.

Resources for Managing Student Loans 

• National Student Loan Data System
• Direct Loan
• Promissory Note & Entrance Interview
• Forgiveness, Cancellation and Discharge
• Deferment and Forbearance
• Truth About Credit
• FAFSA – Free Application for Federal Student Aid
• Education Planner – A comprehensive guide for funding your college education
• Federal Student Loans
• Federal Student Aid
• Decide How Much to Borrow with the Debt/Salary Wizard7

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Loan Forgiveness for Federal Employees

The Federal Student Loan Repayment Program allows U.S. government agencies to repay federally-insured student loans as a recruitment or retention incentive for candidates or current employees. The program implements 5 U.S.C. 5379, which authorizes agencies to set up their own student loan repayment programs to attract or retain highly qualified employees.

Teaching Cancellations: You may be able to cancel up to 100 percent of your Perkins Loan if you work full time in a public or nonprofit elementary or secondary school as a:

• Teacher serving students from low-income families
• Special education teacher for infants, toddlers, children, or youth with disabilities
• Teacher in mathematics, science, foreign languages, bilingual education, or in any area determined by a state-level education agency to have a shortage of qualified teachers
• Nurse or medical technician providing health care services
• Employee of an eligible public or private nonprofit child and family services agency, providing or supervising services to high-risk children (and their families) from low-income communities
• Qualified professional provider of early intervention services in a public or other nonprofit program under public supervision
• Staff member of a preschool program’s education team, under the Head Start Act
• Qualifying law enforcement or corrections officer

Other Service Cancellations: You may be able to cancel up to 100 percent of your Perkins Loan if you work full time as a:

• Nurse or medical technician providing health care services
• Employee of an eligible public or private nonprofit child and family services agency, providing or supervising services to high-risk children (and their families) from low-income communities
• Qualified professional provider of early intervention services in a public or other nonprofit program under public supervision
• Staff member of a preschool program’s education team, under the Head Start Act
• Qualifying law enforcement or corrections officer

Tips for successful repayment

• Make sure you have all your loan records organized.
• Know the amount of your student loan payments.
• Include student loan payments in your budget.
• Know when your loan payments begin.
• Contact your loan holder immediately if you are having trouble making your monthly payments.
• Complete the Exit Interview and complete the required forms, your contact information will be updated with your lenders, and you will be less likely to go into default. Make sure you keep your contact information updated with all of your lenders directly.