Creighton University

• With each loan disbursement, you received a loan disclosure statement from your lender which listed your interest rate, estimated total interest costs and total indebtedness.
• You are entitled to receive a repayment schedule before your payment is due.
• If your loan is sold or transferred, you will be notified in writing and given the name, address and phone number of the new holder.
• Once repayment begins, if you have difficulty making payments, you may request a deferment or forbearance.

• Once you have signed your student loan  promissory note and endorsed your check or accepted your EFT funds, you have made a legal agreement to adhere to certain responsibilities which begin while you are still in school.
• You need to inform the holder of the loan if any of the following changes:
  • Name
  • Address, phone number
  • Transfer to another school
  • Leave of absence or withdrawal from school
  • New graduation date
• You must repay your loan!

Investigate all repayment options offered by your lender/servicer.  Be sure to make all scheduled payments on time.  If you are experiencing difficulties, immediately contact your lender/servicer to explain the situation.  Together you can discuss alternatives.

 

PRE-PAYMENT:  You may pre-pay all or part of your loan at any time without penalty.  This may substantially decrease your total interest costs.

STANDARD PAYMENT PLAN:  The maximum repayment period is 10 years (excluding periods of deferment or forbearance).  Minimum monthly payments start at $50.  Your payments may be higher depending on the actual amount borrowed.  See repayment chart on the next page.

GRADUATED PAYMENT PLAN:  You may begin to repay the loan with small monthly payments that increase over time.  This option assumes that your income will grow enough to cover the increasing loan payments.  You will pay a somewhat higher amount of interest that you would under the standard plan.

EXTENDED REPAYMENT PLAN:  This plan is available if you borrow a student loan for the first time after October 07, 1998 and you have more than $30,000 in student loans.  Payments can be extended for up to 25 years.

LOAN SERIALIZATION:  Many lender/servicers who are holding several of your loans will combine same-type loans to allow you a single repayment amount.  They will still handle each loan program separately due to the varying terms of the loans.

CONSOLIDATION:  Your outstanding loans (Federal Stafford, Unsubsidized Stafford, Perkins, HPSL, and Nursing Student Loan Program) can be combined into a single new loan with new terms –  i.e., a  new interest rate and a longer repayment period (up to 30 years).  While this may reduce your monthly payments, it will result in higher total interest costs.

LOAN CANCELLATION:  Loans may be cancelled upon the death or total and permanent disability of the borrower, or upon the death of the student on whose behalf a parent borrowed a Federal PLUS Loan.

INCOME SENSITIVE:  Allows borrowers to have their payments based on a percentage of their monthly gross income.  Monthly payments must be at least equal to the interest that accrues monthly.  If interest-only payments still pose a financial hardship, reduced payment forbearance may be granted, and unpaid interest will be capitalized at the end of the forbearance period.  In the event that payments under an income sensitive plan will not pay off the loan with the maximum repayment term, lenders must grant up to five years forbearance.   Borrowers must provide information to their lender every 12 months to continue their income sensitive repayment.  NOTE:  PLUS Loans are not eligible for income sensitive repayment.  

For Federal Stafford Loans:  After you graduate, leave school or drop below half-time enrollment, you have a six-month grace period before repayment begins.  Unsubsidized loans accrue interest during this time, although subsidized loans do not.

Occasionally a borrower may have difficulty meeting expected monthly payment obligations.  The key is to communicate with your lender/servicer – let them know you’re having difficulty.  Here are some options which may help you:

 

• DEFERMENT: An arrangement in which the principal and/or interest payments are postponed for authorized reasons such as a period of unemployment, return to school, or economic hardship.   Interest on the subsidized Stafford loan is paid by the Federal government during a deferment period.  
• FORBEARANCE: A postponement or reduction of payments during temporary financial difficulty.  Interest accrues on both subsidized and unsubsidized Stafford loans during a forbearance.  Forbearance can be granted for a maximum of 3 years.  

If you are late on a scheduled payment, you are considered to be delinquent on your loan.  If you are 90 days late, your delinquency will be reported to national credit bureaus.

If you are 270 days late on your scheduled payment, you are in violation of your loan agreement, and it will be assumed that you do not intend to repay your loan.  Defaults are reported to national credit bureaus and remain on your credit report for seven years.  This may affect your ability to obtain an auto loan, credit cards, or other financing.   Other consequences include:

 

• The entire unpaid amount of your loan, including interest, may become immediately due and payable.
• The federal government may collect loan payment from federal and state income tax refunds, garnished wages or state lottery winnings.
• You will be ineligible to receive any additional federal or state financial aid funds (Federal Pell, SEOG, FWS, Perkins Loans, subsidized and unsubsidized Stafford Loans, or PLUS Loans) at any institution.

Plan ahead to be sure that you have affordable debt levels at the time of repayment.  Current and projected salary levels for most career areas should be available in your campus Career Center.  No more than 15% of your income should go toward student loan payments.  Per federal regulations, the minimum monthly payment is $50 and the maximum repayment term is 10 years.  This repayment chart does not include interest on unsubsidized loans that accrued while you were in school.

 

Amount Borrowed	Monthly Payment	Total Interest Paid
$5,500	$67	$2,595
$7,500	$92	$3,539
$10,000	$123	$4,718
$15,000	$184	$7,077
$20,000	$245	$9,437
$25,000	$307	$11,796
$35,000	$429	$16,514
$45,000	$552	$21,232
$55,000	$675	$25,951
$65,000	$797	$30,669
$75,000	$920	$35,387
$85,000	$1,043	$40,106
$95,000	$1,165	$44,824
$120,000	$1,472	$56,620

This chart assumes a 10 year repayment period at 8.25% interest.

Designed to help student loan borrowers better manage their educational debt, Federal Consolidation Loans allow the borrower to repay several loans with one lower monthly payment.  There is no minimum loan amount.  Some lenders may not choose to consolidate all eligible loan programs.

Eligible Loan Programs

• Federal Stafford Loan
• Federal Unsubsidized Stafford Loan
• Federal Grad PLUS Loan
• Federal Perkins Loan
• Health Professions Student Loan (HPSL)
• Nursing Student Loan Program

• Interest rate will be the weighted average of the underlying loans plus 1/8% capped at 8.25%.
• Borrowers are allowed 180 days after consolidation to add omitted loans.
• Defaulted borrowers may be eligible for a Federal Consolidation Loan only after they have made satisfactory repayment arrangements to the holder of the defaulted loan, or by agreeing to repay the Federal Consolidation Loan through income-sensitive repayment.
• Early repayment without penalty is allowed and will reduce your interest cost.

The major advantage to Consolidate your federal loans is to lock in the current interest rate.  Consolidation allows students to extend the repayment term beyond 10 years, depending upon the amount of money a student has borrowed.  Consolidation allows students to repay their loans to a single entity.  Consolidation loans are eligible for the same deferment and forbearance options as they were prior to consolidation.  Lenders cannot charge a fee to consolidate your student loans and there is no early repayment penalty.  Creighton University encourages students to contact their current Stafford Loan lender to consolidate their loans.

NOTE:  There are also many new organizations that do not participate in the federal loan programs, but are very active in marketing to student loan borrowers about consolidation.  We are not familiar with many of these organizations, and do not know whom to contact for more information.  Please understand Creighton University will not be able to assist you if you choose to consolidate your loans with one of these organizations.  

If several servicers are handling your loans, each will require minimum payments.  You may be able to serialize them to reduce the number of separate payments, without paying additional interest…

 

• Loan Serialization:  This may be available for same type loans (Federal Stafford, Unsubsidized Stafford, SLS, or PLUS) owned by the same lender or secondary market even if held by different servicers.  In many cases this will be done automatically.  Contact your holder/servicer to discuss your options.
• Lender Buyout/Loan Repurchase:  If different holders own your loans, you can request that one purchase your loans from the other.  Contact each loan holder to determine individual policies.

You may be able to lower your monthly payment by extending your repayment term…

• You may be eligible for a Federal Consolidation Loan which can combine several loans.  This loan can be repaid over a period of 10 – 30 years.

When you are behind in payments…

• Discuss different payment options with your holder/servicer.  It may not be too late to apply for a deferment or forbearance.  If you neglected to turn in the form in a timely manner even though you were eligible, you may still be able to apply.  Call your holder/servicer for details.

If you think you are in default…

• Default occurs after 270 days of delinquency.  If you are in default and can prove that a mistake was made on your account, call your guaranty agency and ask about an appeal process.
• If the default occurred and you could have made payments but neglected to do so, call the guaranty agency to make satisfactory payment arrangements.  You will still be considered in default, but if a full payment is made, the default may be taken off your credit record.  Even if partial payments are arranged, you will owe less in fees, and it will be much less of a hassle than waiting for a collection agency to demand payment.

When you have trouble communicating with your holder/servicer…

 

• Vary your calling times.  Try calling mid-week and early in the morning when phones are less busy.  When you call, have your loan account number handy for reference.
• Complete all forms thoroughly.  Give your holder/servicer ample processing time.
• Keep written records of your attempts and contacts (first and last names, times and dates, outcome of discussion, deadlines).
• Consider sending mail certified, return receipt requested.
• If your loan has been transferred, you may be able to get some assistance from:

                1.  Your original lender.  They may be able to help you work with the new holder/servicer.  
                2.  The guaranty agency. They are required to keep information about

• loans in repayment.  Many times they can act as a liaison between you and your holder/servicer.
• Many lenders/servicers now have on-line access to inquire about your account status.

When you’re unsure about where to send payments or address updates…

• Call the agency that guaranteed your loan.
• Open all of your mail.  If your loan has been transferred, you will receive notification from a new holder. 

When you’re unsure about the name of the guaranty agency...

• Look through your records.  Your loan application or the disclosure statement will tell you who guaranteed your loan.
• Call your lender.  They should be able to tell you who guaranteed your loan and to whom the loan was transferred.
• Go to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov
• Go to your Creighton Student Self Service web page at www.creighton.edu/financialaid.

Meeting credit obligations is essential to maintaining a positive credit history.  Establishing a budget may prove to be the vital link in managing repayment obligations.  Use the formula below to establish a detailed budget.

INCOME	A)_________________________
Estimated Annual Gross Income	B)_________________________
Estimated Annual Net Income (Line A x 65%)	C)_________________________
EXPENSES	$ __________________
Education Loans (Private & Federal)	$ __________________
Rent/Mortgage	$ __________________
Car Payment	$ __________________
Utilities	$ __________________
Telephone	$ __________________
Groceries	$ __________________
Child Care Expenses	$ __________________
Transportation	$ __________________
Credit Cards	$ __________________
Savings	$ __________________
Retirement Plan	$ __________________
Insurance	$ __________________
Other Installment Payments	$ __________________
Entertainment/Recreation	$ __________________
Personal	$ __________________
Miscellaneous	$ __________________
TOTAL EXPENSES	$ __________________
DISPOSABLE INCOME (estimated monthly net income minus estimated total expenses)	$ __________________

Many lenders will now allow you to monitor your student loan activity on line.  You can find out your current principal balance, interest rate, and other loan information.
*If your lender is:	Go to:
U.S. Bank First National Bank Creighton University ASAP/Union Bank & Trust Creighton Federal Credit Union  Higher Education Solutions	www.nelnet.net
*If your lender is:	Go to:
Wells Fargo/First Midwest Bank	www.wellsfargo.com
Wachovia (formerly Educaid)	www.wachovia.com
Access Group	www.accessgroup.org
If your lender is not listed here, call them to find out how to access your loan information via the web.  If you don’t have access to the web, call customer service at:
Nelnet Creighton University First National Bank ASAP/Union Bank & Trust Creighton Federal Credit Union U.S. Bank Higher Education Solutions	1-800-755-7858
Wells Fargo	1-800-658-3567
Wachovia (formerly Educaid)	1-800-338-2243
Access Group	1-800-282-1550

 

Changing federal, state or university policies, as well as unintended errors, subject this information to modification without notice. Creighton University reserves the right to change any provision or requirement at any time.