Educational
loans are like any other loans and must be repaid whether you
complete your education or not, even if you can't find a job.
It's obviously important to carefully consider your decision.
And don't borrow more than you realistically think you'll be
able to repay.
Maintaining
all your loan records together in a convenient place will make
the job of managing your student loan debt a lot easier. Keep
these items on hand:
-
Copies of all loan applications/promissory notes
- Copies
of all loan disclosure statements
- Copies
of all correspondence with your school, lender, servicer,
or secondary market (including a record of all telephone
calls)
You
can track the status of your ESF loan anytime with our online
LoanTracker
service.
Repayment
Tips:
Repaying your loan on time has great advantages. Timely payments
reported to credit bureaus give you a favorable credit rating,
which can open doors to borrowing for that new home or car you've
dreamed about.
If you don't repay your loan and it becomes evident to your
loan holder that you don't intend to honor your obligation,
your loan goes into default. Your loan can default from a lack
of paperwork as easily as from a lack of payment. For that reason,
it's important to keep your loan holder informed of any changes
in your status, as well as your current address and a daytime
phone number.
You can avoid default by communicating with your loan holder.
If you're temporarily unable to make your payments, call your
loan holder. Forbearance,
deferment,
or other repayment options may be available. You may also qualify
for a
consolidation
loan.
The
consequences of default can be far-reaching. A default becomes
part of your credit record and can restrict your ability to
borrow money for items such as a home or an automobile. It may
also prohibit you from obtaining future student aid. Your state
and federal income tax refunds can be withheld and your wages
garnished to repay your debt. Any additional charges associated
with collecting your defaulted loan--attorney fees, collection
agency charges, and court costs, for instance -- may be passed
on to you and become part of your loan debt. Develop a budget
and keep it realistic.
Repayment
Schedule:
Use
our payment calculator to estimate your monthly payment. Remember
this is only an estimate. Your actual payment amount may vary.
Check with your loan holder to determine your actual payment
amount.