Tips for Loan Management

• Read your promissory note thoroughly to understand your rights and responsibilities.
• Remember a loan has to be repaid.
• Know your payment due date. If this date is not good for you, contact your lender to change it.
• Make your student loan payments on time. If possible, allow your lender to automatically debit your checking account.
• Do not get behind in payments. If you are having trouble with your payments, call your lender to find out your repayment options.
• Always open and read correspondence from your lender and your school. They both want to keep you informed.
• Keep your enrollment status current by contacting your lender immediately if you transfer, withdraw or change your graduation date.
• If transferring to a new school, be sure to complete an in-school deferment.
• Do not overspend. Maintain a budget that includes your student loan payment.
• Always notify your lender if there is a change of address, phone number, or name.

Loan Locator

National Student Loan Data System
The Federal PIN is required to access loan information.

Internet Borrower Inquiry Services (IBIS)
View loans guaranteed by the Georgia Student Finance Commission.

Loan Repayment

Standard Repayment Plan
The repayment schedule is set for a 10-year term with a minimum monthly payment of $50 depending on the total amount borrowed.

Graduated Repayment Plan
This plan allows payments to start out smaller and gradually increase during the repayment schedule.

Income Sensitive Repayment Plan
This plan bases the monthly payment on your gross monthly income. You are automatically assigned the standard repayment plan unless you tell your lender otherwise. Remember that borrowing is simply renting somebody else's money. You must repay your student loan to your lender, according to the repayment schedule, unless you have obtained a deferment, a forbearance or forgiveness. If you fail to make your payments required by the repayment schedule, your loan will go into default. Default is a very serious matter and can seriously affect your ability to borrow money in the future. If you need help or information, ask your lender.

Deferments
You may temporarily postpone your student loan payment if your situation falls into government established categories. Some of the most common deferments include:

• Half-time enrollment at an eligible school or approved graduate fellowship program
• A period of unemployment
• Economic hardship--earning below minimum wage or the poverty level.

There are other situations that may qualify for a deferment. Ask your lender for details.

Forbearance
Your student loan payment may be postponed or reduced if you are willing but temporarily unable to meet your repayment obligations. You can also request forbearance if your debt burden (in federal student loans only) is equal to or greater than 20% of your gross income.

Check out this loan repayment calculator to estimate your monthly payments.

Consolidation

Consolidation allows you to combine all eligible federal education loans into one new loan. However, consolidation is not for everyone.

Pros
Lock in a low fixed interest rate
Reduce monthly payments because of the extended repayment period
Make one payment to one lender

Cons
Extend the life of your loan
Forfeit original repayment incentives
May lose the grace period
May pay more total interest over the extended repayment period

Talk with your lender to see what is best for you. For additional information on loans and repayment, see the Repayment Guide on GAcollege411’s site.

Teacher Loan Forgiveness Program

Teachers who have loans that were disbursed after October 1, 1998 may qualify to have up to $5,000 of those loans forgiven. You must not have had an outstanding loan balance on a FFELP or Direct Loan prior to October 1, 1998 in order to be eligible. See the Department of Education’s website for more criteria.