How Do I Accept My Loans?

In the majority of schools, Financial Aid department will have a way (usually web based) to contact you when your loans are processed. Some lenders require Entrance Counseling in order to receive loans. The Entrance Counseling is also usually web based and you will typically be able to link to it from the information the Financial Aid Office sends you. The Entrance Counseling will give you basic information about loan types, requirements to keep your loans, and loan repayment. Once you finish the Entrance Counseling, you must sign a Master Promissory Note that basically says you accept the loan’s terms and conditions. This is usually done electronically but some companies still require the Master Promissory Note to be signed and mailed back.

Once these two steps are complete, your school’s Financial Aid Office will notify you about how much aid you will receive. You then choose how much of the awarded loan money you want to accept.

When do I have to pay all this back?

You must begin to pay back Federal loans following a 6 month period of not being enrollment in school. This occurs when you do not enroll in classes for six months or after you graduate. Remember to plan ahead with your budget and expect these bills to come. Find out the lenders information from your school’s Financial Aid Office and make arrangements to have your loans consolidated (all your loans rolled into one sum to repay) if possible. This makes for less financial confusion and a steady rate of billing.

To find out who services your loans click here.
To find out how to consolidate federal loans click here.

Deferment of Federal Loans

Loan deferment is possible under certain circumstances. If you find yourself in financial distress contact a counselor for your lender. If you are able to show your lender evidence of this distress, you can work out an extension period with the loan counselor to delay repayment until you are financially able to resume repaying your loans. You can also work with your lender to lower the amount to be repaid at a time or change the payment schedule based on your individual financial need.

It is always better to contact your lender and keep them informed of your current situation. This will put you in better standing with the company and save your credit. As long as you communicate with your lender and repay what you are able, the lender will be willing to work with you on your loan repayment.

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5. Why Student Loans Are A Huge Scam