Student Loan Borrower: Rights & Responsibilities
Presented by Hrissi Haldezos, Associate Director of Student Accounts, this comprehensive guide covers key aspects of being a student loan borrower, focusing on the Federal Perkins Loan Program. It discusses features, grace periods, repayment terms, penalties, deferments, account management, default prevention, and consolidation considerations. Important contact information and resources are provided to help borrowers navigate their loan responsibilities effectively.
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UNDERSTANDING YOUR RIGHTS AND UNDERSTANDING YOUR RIGHTS AND RESPONSIBLITIES RESPONSIBLITIES AS A STUDENT LOAN AS A STUDENT LOAN BORROWER BORROWER PRESENTED BY HRISSI HALDEZOS, ASSOCIATE DIRECTOR OF STUDENT ACCOUNTS
Federal Federal Perkins Loan Perkins Loan Program Program
IMPORTANT IMPORTANT FEATURES OF THE FEATURES OF THE PERKINS LOAN PERKINS LOAN month grace period (unless fully used while on leave; then you will have a six grace period (unless fully used while on leave; then you will have a six- -month grace grace) ) 9 9- -month month Repayment typically begins in Repayment typically begins in March March 10 year repayment period 10 year repayment period No penalty for early repayment No penalty for early repayment In In- -School and Hardship Deferments available School and Hardship Deferments available Heartland ECSI is Heartland ECSI is University s loan servicer University s loan servicer and all them; everything available online them; everything available online at and all correspondence will come from correspondence will come from at www.heartland.ecsi.net www.heartland.ecsi.net
PERKINS CONTINUED. PERKINS CONTINUED . If If payment becomes a problem, handle it immediately; much easier to prevent payment becomes a problem, handle it immediately; much easier to prevent problem than to fix one. problem than to fix one. Call the servicer (Heartland ECSI); 1 Call the servicer (Heartland ECSI); 1- -888 888- -549 549- -3274 3274 If loan goes into default (miss three payment or more), it goes immediately to If loan goes into default (miss three payment or more), it goes immediately to collections, which can add up to an additional 30% collection fees to the amount collections, which can add up to an additional 30% collection fees to the amount owed. Negative credit information goes to all 3 credit bureaus on defaulted owed. Negative credit information goes to all 3 credit bureaus on defaulted loans. loans. Account Account management info, including E management info, including E- -Payments, address update, etc. and Misc Misc Forms (deferment, hardship, cancellation) ALL available Forms (deferment, hardship, cancellation) ALL available on Heartland ECSI website Heartland ECSI website. . Payments, address update, etc. and on
PERKINS CONTINUED PERKINS CONTINUED Think carefully about consolidation: Think carefully about consolidation: Advantage is that you will be paying back all loans to ONE lender, Disadvantage is that you lose Perkins cancellation provisions. Perkins have loan cancellation provisions for certain career fields. Contact Heartland ECSI for more info.
PERKINS CONTINUED PERKINS CONTINUED Exit Counseling completed online at www.heartland.ecsi.net Exit Counseling completed online at www.heartland.ecsi.net Exit Counseling process, as per the green instruction sheet Exit Counseling process, as per the green instruction sheet -- --Heartland rec you use Google Chrome or Safari or IE Heartland rec you use Google Chrome or Safari or IE - -Can do on laptop but NOT on mobile device Can do on laptop but NOT on mobile device -- --There are THREE parts to the Exit There are THREE parts to the Exit must do all 3! must do all 3!
Wesleyan Loan (Institutional Loan) Wesleyan Loan (Institutional Loan)
IMPORTANT FEATURES OF THE IMPORTANT FEATURES OF THE WESLEYAN LOANS WESLEYAN LOANS 6 6- -month month grace period (same as grace period (same as Direct Loans) Direct Loans) Repayment begins in Repayment begins in December December 10 year repayment period 10 year repayment period No penalty for early repayment No penalty for early repayment Heartland ECSI is Heartland ECSI is University s loan servicer and all correspondence will University s loan servicer and all correspondence will come from them; everything available online at come from them; everything available online at www.heartland.ecsi.net www.heartland.ecsi.net
WESLEYAN LOAN CONT Not eligible for Not eligible for consolidation (re: institutional loan not a federal loan) consolidation (re: institutional loan not a federal loan) In In- -school and hardship deferments available at school and hardship deferments available at Heartland ECSI web Heartland ECSI web site site Student Loan Office (me!) will send an email to Wesleyan Loan borrowers about Student Loan Office (me!) will send an email to Wesleyan Loan borrowers about setting up an in setting up an in- -person exit session before graduation person exit session before graduation
HAVE MORE THAN ONE LOAN TYPE? HAVE MORE THAN ONE LOAN TYPE? Different Different programs have different rules and there is NO programs have different rules and there is NO cross cross- -over communication among over communication among them them If deferment or forbearances If deferment or forbearances are requested (in hardship), forms MUST be submitted to and processed hardship), forms MUST be submitted to and processed for EACH LOAN TYPE for EACH LOAN TYPE are requested (in- -school, school,
AVOID DEFAULTING!!! AVOID DEFAULTING!!! CALL YOUR LENDER CALL YOUR LENDER if you experience financial difficulties. You may qualify for a forbearance or deferment. Servicers will work with just about any situation. IF YOU DO NOTHING IF YOU DO NOTHING, a defaulted loan will cause (1) collection agency action (2) bad credit (3) Loss of eligibility for further financial aid (4) Garnished Wages and/or Federal Refunds (5) Litigation
Cant make federal loan payments under ANY Plan, talk to Can t make federal loan payments under ANY Plan, talk to your Servicer about your Servicer about Forbearance and/or Deferment Forbearance and/or Deferment: FORBEARANCE FORBEARANCE - - A student loan forbearance is an agreement A student loan forbearance is an agreement between a borrower and the lender/servicer to temporarily between a borrower and the lender/servicer to temporarily postpone payments, extend the timeframe for making monthly postpone payments, extend the timeframe for making monthly payments, or reduce the amount of monthly payments on a payments, or reduce the amount of monthly payments on a short short- -term basis. term basis. Interest continues to accrue during a Interest continues to accrue during a forbearance. forbearance. Americorps Americorps (CNCS) Forbearance (CNCS) Forbearance General Forbearance General Forbearance Internship/Residency Internship/Residency Forbearance Forbearance
DEFERMENT DEFERMENT - - student loan deferment is a period of time student loan deferment is a period of time during which payments payments are postponed. Deferments require documentation. are postponed. Deferments require documentation. There are different types of deferments for which borrowers can There are different types of deferments for which borrowers can apply, such as in apply, such as in- -school deferments or unemployment deferments. school deferments or unemployment deferments. Interest accrual is suspended during a Interest accrual is suspended during a deferment. Armed Forces Deferment Armed Forces Deferment Economic Hardship Deferment Economic Hardship Deferment Graduate Fellowship Program Deferment Graduate Fellowship Program Deferment In School At Least Half Time Deferment (GRAD SCHOOL in September??) In School At Least Half Time Deferment (GRAD SCHOOL in September??) Internship/Residency Program Deferment Internship/Residency Program Deferment Peace Corps Deferment Teacher Shortage Area Deferment Peace Corps Deferment Teacher Shortage Area Deferment Temporary Total Disability Deferment Temporary Total Disability Deferment Unemployment Deferment Unemployment Deferment during which deferment.
LOAN FORGIVENESS PROGRAMS FOR LOAN FORGIVENESS PROGRAMS FOR FEDERAL DIRECT LOANS AND PERKINS FEDERAL DIRECT LOANS AND PERKINS Loan forgiveness options may exist for certain career field, i.e. military, law enforcement, nursing, etc. but you should check with your future employer and professional websites for more details. Sign up at the beginning because many will not retroactively include repayment amounts.
BOOKMARK BOOKMARK NATIONAL STUDENT LOAN DATABASE WEBSITE NATIONAL STUDENT LOAN DATABASE WEBSITE www.nslds.ed.gov/npas/index.htm www.nslds.ed.gov/npas/index.htm This This database will allow you to log database will allow you to log- -in at anytime and click on your loans from any year and receive contact information on the loans from any year and receive contact information on the current servicer for that current servicer for that loan. loan. The The Dept. of Education Dept. of Education has worked to streamline has worked to streamline student loans into a common servicer based on social security number. into a common servicer based on social security number. in at anytime and click on your student loans
IMPORTANT TO REMEMBER IMPORTANT TO REMEMBER ADDRESS CHANGE ADDRESS CHANGE Keep all lenders advised of any address changes. Changing Keep all lenders advised of any address changes. Changing your address with the university does not update it with your address with the university does not update it with lenders lenders! ! Not receiving a bill is not a valid reason to not pay. e.g., if your Not receiving a bill is not a valid reason to not pay. e.g., if your billing statements are going to an old address and you billing statements are going to an old address and you never see them, you are still responsible for paying your never see them, you are still responsible for paying your loan on time. One way to resolve the invalid address loan on time. One way to resolve the invalid address problem is to sign up for electronic (email) billing. problem is to sign up for electronic (email) billing.
RECAP RECAP Must complete Exit Must complete Exit Counseling for ALL relevant loans Counseling for ALL relevant loans by May 21 May 21st st, 2018 , 2018 If If you are in a financial situation where you cannot pay your loans for you are in a financial situation where you cannot pay your loans for a period of time, a period of time, DO NOT IGNORE THE BILLS! DO NOT IGNORE THE BILLS! You You can apply for can apply for deferments or forbearances deferments or forbearances that will temporarily suspend the payments. suspend the payments. If If you ignore you ignore your loan, your loan, you you WILL end WILL end up in a damage to your credit damage to your credit. . No penalty No penalty for early repayment for early repayment Do not forget about the Do not forget about the Perkins Perkins Loan. While most of your other Loan. While most of your other loans loans (Direct; Wesleyan Loan (Direct; Wesleyan Loan) go into repayment in SIX ) go into repayment in SIX months, the Perkins Loan has a the Perkins Loan has a NINE month grace period NINE month grace period. . by Monday, Monday, that will temporarily up in a defaulted status defaulted status with with months,
FINAL FINANCIAL AID AND STUDENT ACCOUNTS TO-DOS 1) Complete Required Exit Counseling by (Monday) May 21, 2018 1) Complete Required Exit Counseling by (Monday) May 21, 2018 2) Settle your Student Account bill 2) Settle your Student Account bill Hold will be placed on Transcript if 1 & 2 are not done Hold will be placed on Transcript if 1 & 2 are not done
IMPORTANT LINKS: www.heartland.ecsi.net www.heartland.ecsi.net; Customer Service Number: 1 ; Customer Service Number: 1- -888 888- -549 549- -3274 3274 More helpful More helpful links links: : Financial tips: www.bankrate.com/banking Free credit reports: www.annualcreditreport.com/index.action Credit scores: https: www.myfico.com & www.creditkarma.com Loan consolidation: www.studentaid.ed.gov/sa/repay-loans/consolidation
THANK YOU FOR YOUR ATTENTION & CONGRATULATIONS!!!! Any questions, Any questions, please contact . please contact . Student Accounts Office: Student Accounts Office: Hrissi Hrissi Haldezos Haldezos, x2823 , x2823 hhaldezos@wesleyan.edu hhaldezos@wesleyan.edu Financial Aid Office: Financial Aid Office: Michelle Jarvis, x3320, Michelle Jarvis, x3320, mjarvis@wesleyan.edu mjarvis@wesleyan.edu Margaret Neale, x2862, Margaret Neale, x2862, mneale@wesleyan.edu mneale@wesleyan.edu
