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  • Repayment

    About 60% of all college students and 67% of UW-La Crosse students will need to take out a loan for college related expenses. 

    I <3 Repayment

    Student loans are designed to help young adults enter the workforce with manageable debt.
    However students should understand that student loans will be with you until they are paid off completely.  Even filing bankruptcy will not erase your student debts.  Your loans will be paid back, and they will be paid back with interest.

    Managing your student loans

    managing student debt  
     Top 6 Things to do 

    See our handout here and look below for your repayment options. 

    1. Complete Exit Loans Counseling 

    To do this go to this website

    2. Identify Your Loan Servicer

    Log-in to www.nslds.ed.gov to identify your servicer. 

    Register at your servicer's website and update your contact information

    Contact your servicer to: 

    • Learn your account number and monthly payment
    • Setup your online account and/or enroll in automatic payment
    • Get answers to your federal student loan questions 

     

    3. Know Your Total Loan Debt

    Note the sum of your total indebtedness-principal plus interest

    4. Calculate Your Level Payment

    Using a repayment estimator, you should be able to enter the total amount of your loans and determine the approximate amount that your servicer will expect you to pay each month unless you change your repayment plan. 

    5. Pick a Repayment Plan

    There are repayment options that can lower your monthly payments. Keep in mind that these options may increase the total amount that you will repay on your loans due to increased interest that will accrue. 

    If you take out the UW La Crosse average of $25,000 and have a standard repayment schedule of 10-years, you are looking at a $276 payment every month for 120 months!

    A good thing to remember is you can always pay more than what your payment plan states. By doing this you'll pay less interest and get rid of the debt faster.

    Debt.org also explains the government Student Loan Forgiveness Program on their website.

    Below are some repayment options for more options visit Financial Aids site here 

    Repayment Options-snap Comparisons-Snap
    Repayment Options Option Comparisons
    6. Mark Your Calendar

    Most loans have a six month grace period. Calculate your payment due date by adding six months to your graduation date. You can also contact your servicer to confirm the date of your first payment. 

    Loan default
    What qualifies as default?

    Default

    Late payments in and of themselves are bad but student loan default is when you miss payments on your account for a certain period of time:

    -If you are supposed to make monthly payments and you fail to make payments for 270 days your account will be considered default.

    -if you are supposed to make payments more frequently than monthly and you haven't paid for 330 days your account will be considered default.

    Consequences

    -Ineligibility for deferment, forbearance, and other repayment plans.

    -Ineligibility for additional federal student aid.

    -Your account is assigned to a collection agency.

    Penalties

    -Late fees.

    -Additional Fees and interest.

    -Wage garnishment

    -Tax offset (you won't get your tax refund).

    -The entire unpaid balance of your loans and any interest is immediately due and payable (you're no longer on the hook for just the payment, you're now on the hook for everything!)

    -Ruined credit score (makes buying houses or cars extremely difficult.)