Preparing for Loan Repayment

A Stress-Free Guide to Student Loans

https://www.accreditedschoolsonline.org/resources/student-loans/

Exit Counseling

Federal regulations require all students who participate in one of the Federal Student Loan programs to complete an Exit interview. The purpose of the Exit Interview is to review loan history and repayment terms with each student borrower. The Exit Interview is required for graduation and must be completed before a diploma will be issued. An Exit Interview is also required for students who withdraw or drop below half-time (6 hours) enrollment in a given semester. Exit Interview can be completed at the following link. https://www.studentloans.gov/myDirectLoan/index.action

FSA ID

All federal websites now require you to log in using your FSA ID. If you have not created one, go to https://studentaid.gov/fsa-id/create-account/launch. Click “Get Started”. You will have to enter personal information and verify it using a security code. If you have already created an FSA ID and need to update your address or email click “Log in” and make corrections. *It is important to have an accurate and up to date address and email on file to ensure timely communication with your lender.

Repayment Estimator

This tool will provide you with a better estimate of what your monthly payments will be and what payment play options you have available. https://www.studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

National Student Loan Data System

This is where you can monitor all of your loan information. It includes interest rates and lender information. https://nsldsfap.ed.gov/login

Public Service Loan Forgiveness

Some jobs and employers provide an opportunity for Public Service Loan Forgiveness. You can learn more about these opportunities and this process by visiting the following website: https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service

Teacher Loan Forgiveness

Under the Teacher Loan Forgiveness Program, if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans. https://studentaid.gov/manage-loans/forgiveness-cancellation/teacher

Consolidation

Consolidating student loans is the best option for some students, but it’s not for others. Consider your options and what works best for you by visiting the following websites:

Loan Repayment Chart

The below figures are based on a standard 10-year repayment plan (120 total payments).

The chart amounts are figures on a fixed interest rate.

Amount Borrowed	Payment	Total Interest (4.66%)	Payment	Total Interest (6.21%)
$5,000	$52	$1,276	$56	$1,722
$10,000	$105	$2,553	$112	$3,443
$15,000	$157	$3,829	$168	$5,165
$20,000	$209	$5,105	$224	$6,887
$25,000	$262	$6, 382	$280	$8,608
$30,000	$314	$7,658	$336	$10,330

There is no penalty for paying a loan off early. You will save yourself money because you will pay less interest by paying the loan off sooner.

Example:

If you borrowed $20,000 in a Direct Loan with a fixed interest rate of 6.21% and are paying on the standard 10-year plan, minimum payments are $224 a month.
If you only make the minimum payments, you will pay $6,887 in interest alone over the 10 year repayment period.