About 60% of all college students and 67% of UW-La Crosse students will need to take out a loan for college related expenses.
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.
See our handout here and look below for your repayment options.
To do this go to this website
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:
Note the sum of your total indebtedness-principal plus interest
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.
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
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.
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.
-Ineligibility for deferment, forbearance, and other repayment plans.
-Ineligibility for additional federal student aid.
-Your account is assigned to a collection agency.
-Additional Fees and interest.
-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.)