Know the Basics

Interested in calculating your loan payment? Check out these great loan calculators:

• Mapping Your Future Student Loan Calculator
• FinAid's Loan Payment Calculator

Your Rights and Responsibilities

As a student loan borrower, you have certain rights and responsibilities. They are summarized below; however, please refer to the Borrower's Rights and Responsibilities section of your Master Promissory Note (MPN) for more detailed information.

Rights
Before you leave school, you'll receive the following information:

• the amount of your total debt (principal and estimated interest), what your interest rate is, and the total interest charges on your loan
• an explanation of available options for consolidating or refinancing your loan
• a statement that you can prepay your loan at any time without penalty

You will also be provided the following information as part of an exit counseling session:

• a description of options for postponing or reducing your payments through deferment, forbearance, and discharge provisions
• repayment options
• notification that you must provide your expected permanent address, the name and address of your expected employer, and any corrections to your name, Social Security Number, references, and driver's license number (if you have one)

Responsibilities

• You must make payments on your loan even if you don't receive a bill or repayment notice.
• You must inform your lender of any changes to your name, address, telephone number, Social Security Number, or enrollment status.
• If you apply for a deferment or forbearance, you must continue to make payments until you are notified that the request has been granted.
• You must receive exit counseling before you leave school.

Student Loan Exit Counseling

You must participate in Student Loan Exit Counseling (or Exit Interview) before you graduate or withdraw from college. Your college may require that you attend this exit counseling in person, or they may provide you materials through the mail.

EAC, as a sponsor of Mapping Your Future, also makes electronic Exit Counseling available to colleges. Check here to find out if your college uses this electronic Exit Counseling.

Stages of Repayment

The repayment of your student loan will enter several stages. Understanding these stages will keep you a step ahead in the repayment process.

Grace Period
After you graduate, withdraw, or drop to less than half-time attendance, you are given a six-month grace period before your first payment is due.

Use your grace period to your advantage:

• Watch the mail for information on your repayment schedule, which will include your payment amount, monthly due date, interest rate, and terms of your loan.
• Plan ahead. Build your student loan payment into your budget. If you heed help, check out our Monthly Income and Expense Worksheet .
• Contact your lender if your mailing address or telephone number changes.

Sale/Transfer
It's likely that your lender will sell or transfer your loan for repayment. A secondary market is an agency that may buy your loan and hold it throughout repayment. Certain lenders do not sell your loan, but instead transfer it to that lender's repayment servicing center. The terms and conditions of your loan do not change if it is sold or transferred.

First Payment
Watch the mail for your payment booklet or loan billing statement or contact your lender about signing up to have your payments automatically withdrawn from your checking or savings account. Make sure your lender has your current mailing address and phone number.

Managing Your Monthly Payments
Plan your budget to include your monthly student loan payment. Don't make any new purchases (such as a new car or home) until you've made sure it will fit into your budget. Making every payment fully and on time every month will help you establish a great credit history and move you closer to being free of your student loan debt.

If you're having trouble making that payment, contact your lender about your options. Check out our information on deferment and forbearance to see if you may qualify.

Paid in Full
When you make the final payment, it's time to celebrate! You've paid your debt in full and now it's time to enjoy the education it paid for.

Repayment Plan Options

Different repayment plans have been developed to make sure you can afford your student loan payment. Contact your lender to sign up for the plan that's right for you.

Standard Repayment Plan
Unless you request a different plan, you will automatically be on the Standard (or Fixed) Repayment Plan at the end of your grace period. You will pay the same amount each month for up to ten years. The amount of your payment is based on the amount you borrowed, with a $50 minimum payment.

Graduated Repayment Plan
With the Graduated Repayment Plan, your payments begin lower and rise over time. The term for this repayment plan will be ten years or less. If you choose this option, keep in mind that lower payments mean you will pay more interest over the life of the loan than if you use the Standard Repayment Plan.

Extended Repayment Plan
If you owe at least $30,000 in student loans that were disbursed after October 7, 1998, you may be eligible for Extended Repayment. This plan allows for a term of up to 25 years. This plan will require you to pay more interest over the life of your loan.

Income-Sensitive Repayment Plan
The income-sensitive repayment plan bases your monthly payments on your gross monthly income. The amount of your payment may change annually as your income changes. If the income-sensitive plan lowers your payment, you will pay more interest over the life of the loan.

Tips for Successful Repayment

Get in touch with your lender to:

• Get repayment information if you have not received it during your grace period.
• Check out repayment plan options. Find one that will fit your means.
• Ask about repayment incentives that could save you money.
• Sign up for automatic payments from your checking or savings account.
• Explore available options if you are not able to make a payment.
• Report changes in your mailing address or phone number.

Learn how to manage your money at http://mappingyourfuture.org/money/ .

Establish a budget and stick to it. It's much easier to make that student loan payment on time when you have a plan that puts you in control of your finances.

Ombudsman

If you have a student loan dispute or a problem that you can't resolve with your school or lender, you may contact Ellen Welke, Ombudsman for Education Assistance Corporation, at 1-800-592-1802, ext. 4340. If you have a dispute or problem that you can't resolve with EAC or another guarantor, you may contact the Student Financial Aid Ombudsman's Office at 1-877-557-2575.