Student Loan Repayment
You were notified of the agency that will service your loan when your loan was processed by Roseman University. This agency is known as your servicer. Your loan servicer will provide regular updates on the status of your Direct Loans as well as various repayment plans. It is your responsibility to keep your servicer updated with your current mailing address, telephone number and e-mail address.
A deferment or forbearance allows you to temporarily postpone or lower your payments.
During your enrollment at Roseman University you can receive an in-school deferment for your previous student loans. See Enrollment and Graduation Verification for additional information.
Other Types Of Deferments/Forbearance
Some conditions that qualify for a deferment (speak with your servicer to find out what you qualify for):
- You are studying full-time in a graduate fellowship program.
- You are in an approved full-time disability rehabilitation program.
- You are unemployed or meet the Department of Education’s rules for economic hardship (limited to 3 years).
You may also qualify for a deferment based on active duty service in the U.S. Armed Forces or National Guard.
If you don’t qualify for a deferment but are temporarily unable to make loan payments for such reasons as illness or financial hardship, your loan servicer may grant you a forbearance.
For more details and options on deferments and forbearance, or to find your loan servicer please refer to the U.S. Department of Education’s Federal Student Aid site.
Direct Subsidized and Unsubsidized Loans have 6-month grace periods that start the day after you complete your program, leave school, or drop below half-time enrollment. You don’t have to begin making payments until your grace period ends.
Repayment on a Parent PLUS or Grad PLUS Loan begins 60 days after your loan is fully disbursed. However, your loan can be deferred while you are enrolled in school and for an additional six months after you complete your program or cease to be enrolled.
You can change repayment plans at any time. There is no penalty if you make payments before they are due, pay more than the amount due each month, or pay off your loan early.
You may choose one of several repayment plans:
- Standard Repayment Plan – Fixed monthly payments for up to 10 years.
- Graduated Repayment Plan – Payments start off lower at first, and then gradually increase, usually every 2 years. The loan must be repaid in 10 years.
- Extended Repayment Plan – Fixed or graduated monthly payments over a period of time, not to exceed 25 years. To be eligible for this repayment plan, you must have more than $30,000 in Direct Loan debt.
- Revised Pay As You Earn Repayment Plan (REPAYE) – Your monthly payments will be 10 percent of discretionary income. Payments are recalculated each year based on your annual income (and your spouse’s income or loan debt), your family size, and the total amount of your Direct Loans. After 20 or 25 years any unpaid loan amount will be forgiven.
- Pay As You Earn Repayment Plan (PAYE) – Your monthly payments will be 10 percent of discretionary income. Payments are recalculated each year based on your annual income (your spouse’s income or loan debt will be considered only if you file taxes jointly), your family size, and the total amount of your Direct Loans. After 20 years any unpaid loan amount will be forgiven. You must be a new borrower on or after Oct. 1, 2007.
- Income-Contingent Repayment Plan (ICR) – Your monthly payment is adjusted each year based on your annual income (your spouse’s income or loan debt will be considered only if you file taxes jointly), your family size, and the total amount of your Direct Loans. After 25 years any unpaid loan amount will be forgiven.
- Income-Based Repayment Plan (IBR) – Your monthly payment is capped at an amount that is affordable based on your income and family size. Your eligibility is determined annually. After 25 years any remaining balance will be forgiven.
For more details on repayment and repayment plans please refer to the U.S. Department of Education’s Federal Student Aid site. Use the Repayment Estimator you see what plans you may be eligible for and estimates on payment amounts.
To default means you failed to make your payments on your student loan as scheduled according to the terms of your promissory note.
Your loan is considered delinquent the first day after you miss a payment. Loan servicers report delinquencies to the three major credit bureaus. Default occurs after failing to make a payment for 270 days.
Some of the consequences of default are:
- The entire unpaid balance of your loan and any interest is immediately due and payable.
- You lose eligibility for deferment, forbearance, and repayment plans.
- You lose eligibility for additional federal student aid.
- You may not be able to renew professional licensure.
- The loan will be reported as delinquent to credit bureaus, damaging your credit rating. This will affect your ability to buy a car or house or to get a credit card.
- Your federal and state tax returns can be withheld or your wages can be garnished to collect your student loan debt.
- Your student loan debt will increase because of the late fees, additional interest, court costs, collection fees, attorney’s fees, and any other costs associated with the collection process.
- It will take years to reestablish your credit and recover from default.
If you are having trouble making payments on a federal student loan, immediately contact your loan servicer.
If you are having trouble making payments on your Federal Perkins Loan, immediately contact the school where you received your loan.
For more details on understanding, avoiding, and getting out of default please refer to the U.S. Department of Education’s Federal Student Aid site.
Cancellation or Discharge
You must repay your loan even if you don’t complete your program, can’t find a job related to your program of study, or are unhappy with the education you paid for with your loan. However, the Department of Education will discharge (forgive) your loan if you become totally and permanently disabled, if you die, or if your school closes prior to you completing your program of study.
You may also qualify for forgiveness for some or all of the loan balance after you have made 120 payments on a Direct Loan while employed in certain public service jobs (additional conditions apply).
For more details on loan forgiveness and cancellation please refer to the U.S. Department of Education’s Federal Student Aid site.