Get the 411 on Student Loan Res~~nzjbilitf-s Your Credit, Your Future HelpingStudents Nan, Apply, and Payfar toliege GAcallege411 Is a servke of the State of Georgia provided by the GeoJa Student Flnanc@Cornrnlssion, the OfRce of the Governor, and many other partners. Student Loan Definitions Credit BLireau: An organizationto which business firms apply for information on your repayment record. By makingpayments on time, you.are ensuringthat you maintain a good credit rating, Which you will need when it corn&time to apply far credit cards, buy a car, purchase a home, or in some cases get a job. Default: Fallure to repay your loan accordifigto the terms of ywrprornfsmry note for more than 270 days. WNnqttenw: Failureto repay your loan on time in accordance with the terms of your promissory note. Delinquencybegins on the day follgwingyour toan repayment due date. BkbwreStatemenkA document listing the principal amount of your loan, if applicable, the interestrateand the total amount of your current indebtednessfor loansguaranteed by a guaranty agency such as Georgia Higher Education Assistance Corpowtlan IGHEAC). ~ o u ' irleceive a disclosure statement beforeyou receivethe loan proceeds. GuarantyAgency: .An agency which will verify a borrower's eligibility for funding and will insure the loan for the lender.,Before a lender will make a federal education loan, a guaranty agency, such as GHEAC must insureyour loan. Holder: The institution that owns your loan. This could beyou,roriginal lender or, if your tender has sold the laan, the holder is the institution that purchased it. Lender: The financial institution or bank that makes your loan. Promisspry Hste:The.lega1document you sign that Usts the terns and canditipns under which yuu agreeto repayyour toan. Repayment Maduke: A document detailing your loan balance, estimated total amount of intenst owed, amount &each monthly payment, the total number of payments to be made, the date your first payment is dye, and where you are to send your payments. You will receive this document when it's time40 begin repayingyour loan. Slwicer: A business that handles administrative tasks such as colteding payments, sending reminder letters, etc. Ifyour lender employs a servicer. you will receive the servicer's name, address and phone number. Subsidbd Shfford Loans: Federal loans based on provenfinancial need. The gwernrnent pays the interest while you are in school and for a six-monthgrace period after you leave school or drop below half-time enrollment. LinsubsldIzed SUfbrd Loans: Federalloans, non-needbased, avaitable to eliglble bor~owerswho don't qualify for the maximum amount of subsidized funding; however, you are &sponsibte for all interest payments duringschool and the six-month grace period. -U.S. Department of Education Loans: If you get a Stafford loan, it Is part of the Federal Family EducationLoan Prugnrn [FELP) or part af the DirectStudent Loan Program. if you receive a subsidfzd Stafford loan, the government pays subsidies to lenders who provide the loan funds to,you. It's important to be a responsible borrower! Justremember the following: J Keep all student loan documents in this folder. 1 J Open a My411account on GAcollege41 l.org to track your loan amounts and repayment history instantly. Make your I payments online. J Open all your mail and read everything pertaining to your student loan. If you don't understand something, cali the Georgia Student Finance Commission customer relations department at 800-505-4732 or email payingQhelp.tAcollege41I.org and we'll heip you! J Make all regularly scheduled payments. J Ask for help i f you find yourself headed for trouble. J Maintain contact with your lender, servicer andlor loan holder and provide your current address. 1 By staying organized, you can avoid default and be - - . . - ..h..as-s- le-free - - . .- - when you - - - .g. r.a- d-uate ----- and begin your career. I - . h --- --- -= . - - What are your options? Repayment You can use the calculators in the Payingfor College tab at GAcollege4l z.org to estimate your monthly payments and starting salary. Once you estimate how much your approximate monthly payment will be, you can choose the repayment plan that - best fits your needs. You'll receive repaym, .ent. i.n.f.o,rmat.ion, and -I-r in.-? structjpn.s-.from your&le..n..-d.e-.r or holder. You can choose from severat repayment plans: Standard Repayment keeps total finance charges to a minimum. It's ideal for borrowers who can meet their monthly payments without difficulty. Graduated Repayment offers interest-only paymentsfor the first two or up to fouryears. It can lower initial monthly payments by as much a5 40 percent. IncomeSensithe Repaymentestablishes monthly payments based on growth of your monthly income. It can be helpful for those with modest incomes. Extended Repayment provides repayment period of up to 25 years for some borrowers whose loans total more than $30,000. By repaying your loan early in whole or part, you can reduce the total amount of interest you pay on your loan. DefermentA deferment i s an authorized period of time during which you may postpone payment on your loan. Both principal and interest payments are normally deferred, but you may pay the interest ifyou wish to avoid additional costs that result when the unpaid interest is added to the Loan principal later on (capitalization). Forms are availabte for download in the Publications and Forms section on GAcollege419.org. ForbearanceIf you experience financial difficulty, inform your lender or holder and discuss forbearance options. Forbearance is granted at the discretion of your lender or holder for up to 1 2 months at a time and is generally available for up to three years. Ifyou receive a forbearance, all payments will be temporarily suspended unless you request smaller ones; however, interest wlll continue to accrue during the forbearance period. Forms are available for download in the Publicationsand Forms sectiov ,o-n GAcoilege41l.org. Loall Consolidationoffers borrowers with multiple loans or high balances the opportunity to consolidate these toans into a single payment, and i n many instances, schedule the consolidated loans to be repaid over a longer period, thus reducingyour monthly payment to a manageable amount. Apply over the phone or online. Call GSFC at 800-505-4732 or go to GAcollege42 I.org t o the Applications & Transcripts tab and choose loan applications. The Key to Avoiding Default is C~mI-.m.-.ul .n=--icatingwith Your Len -er. ~-Hrolder! Keeping them informed of your situation will allow them to help you resolve most repayment problems. How to Avoid the "DmWord: Troubleshoot! havfngdMculty nppylngyour lorn, you gg.J&Jesboot by delng the follmwlss: rP Taka Advmtage ef W C ' s hrtnlrrhip wlth Canrumar C d l t touns*llng W c a of Lmtmrw n t r , Inc. [CCtS). CCCS grovldss students additional help In budgeting to npay their college loans. CCCS can offer you debt management counseling and suggest options for repayments. For additional help chock out their website at o n l l n a c o u n r d ~ c c # i L ~ / f i m c . . ~opr call 846-829-UrnI b Q h m l # 8 3 7 ) for information., J Uset)H flps Tor flnrncial Ditnrmr d d b d on Wdhge41.wpin tha Rcprymnt Gfds mtbk J WHI Rnpaymtnt Gats Tough, Ckwk Out Your Option& When money gets tight:and you're considering skipping a student loan payment, call your lender or holder immediately to discuss your optlons listed above. Learn about these options and seek - - guidance from your lender holder, or GSFC. T GACO ege4ll.w Tips to Responsible Borrowing Follow these helpful student Loan tips and you can be prepared, responsible and successful! Ensurea financiallysecure future by prepaying fixed costs, such as tuition, fees, room and board. Use credit cards wisely, avoid impulsive spending and keep track of your expenses, evaluating where you can cut back and save. Keepyour monthlypaymentwithin 8 percent of your gross income. Also, check out average career salaries under the Career Information tab on GAcollege411 for a listing of a variety of occupations and estimated starting salaries. Each year, using the repayment estimator below, estimate the amount you should budgetfor your monthly loan payment based on the amount you have borrowed thus far and what you expect you will have to borrow to finish school, Repayment Estimator 5% 6% - 7% 8% 8.25% Make yo! ,mymen& om time an 1 full so you can' benefit from your lender's special repayment benefits program, which rewards borrowers for responsible financial habits. Keep a logof all communications, including phone calls. Keep copies of alt correspondence as well. Make sureyou date correspondenceand maII.Itto your lender or holder, NO^ the financial ald office. Ifyou relocate, be sure to inform your lender or holder of your new address and p.honenumber. If you cannot be located, you could he declared in default wjthout your knowledge. For more information on your student loan, call us at (770) 724-9000 or toll free at 800-505-4732. You can also access your loan information through GAcol1ege411.org.-We're here to help!