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Managing Student Loan Debt

Manage your student loan debt
Learn how to repay your student loans, no matter how much you borrowed. Remember, student loans must be repaid – even if you did not (as sometimes happens) complete school, cannot get a job, or feel you did not receive the educational or other services you purchased. Click on the following links for more information on each subject heading.

Understand your repayment terms
Your student loan is a debt you owe for your education, and you should treat your loan as you would any other kind of debt - for example, a loan used to buy a car or a house. As with any debt, you are responsible for repaying your loan - in full - even if you did not:

• complete school
• cannot find a job in your field of study, or
• feel you did not receive the educational or other services you purchased.

Calculate your loan payments
Estimate your federal student loan payments under a standard repayment plan (equal payments) using the calculator

Troops and their families: Get advice
With many National Guard and Ready Reserves being called to active duty and U.S. troops being deployed or reassigned to other duty stations, student loan repayment may be one of the issues on the minds of soldiers and their families.

Explore your loan options while continuing your education
If you borrowed federal student loans in the past and now are returning to school, you have options:

• If you return to school while your loan is in its grace period, your loan typically is returned to an “in-school status” as long as you are attending at least half time.
• If you return to school after your grace period has ended, your loan typically will remain in repayment when you return.
• If you attend school at least half time, you can request an in-school deferment on the loan so payments aren't required.
• If you attend less than half time, your loan will remain in repayment. You can continue paying the loan or request forbearance.

Understand loan cancellation and forgiveness
Under certain circumstances, your student loan, or a portion of your loan, may be cancelled or forgiven (in other words, you won't have to repay it). If, based on the chart (click on link) and its definitions, you think you are eligible for loan cancellation, contact your loan holder.

• Be sure to contact all of your loan holders, and don't stop making payments until you receive written notification that your loan is cancelled from each one.
• If only a portion of your loan is cancelled, update your records with your new balance after verifying the information with your loan holder.

Find solutions for repayment problems
Having problems repaying your student loans? Don't panic – you have OPTIONS!

Solutions to common problems:
Financial hardship

• Inquire about alternative repayment plans
• Request an economic hardship deferment
• Request forbearance, if you’re not eligible for a deferment

Forgot to make a payment

• Consider electronic payment options, such as direct debit.
• Service that allows your bank to automatically deduct your monthly loan payments from your checking or savings account and forward it to your loan holder for processing
• Some loan holders offer interest rate discounts if you use electronic debit

Loan is in default

• Review your options, including consolidation, reinstatement of federal financial aid eligibility, and rehabilitation

Monthly payment is too high

• Inquire about alternative repayment plans
• Consider loan consolidation
• Multiple monthly student loan payments
• Consider loan consolidation

Returned to school after loan entered repayment

• Request an in-school deferment

School closed and you weren't able to finish education

• Review your eligibility for closed school discharge (loan forgiveness)

Too many monthly bills

• Inquire about alternative repayment plans
• Request an economic hardship deferment
• Request forbearance, if you’re not eligible for a deferment

Transferred to a new school

• Call your loan holder to advise them you are still in school but transferred to a different school. Then, ask the school you transferred to verify your attendance with your loan holder so loans from your previous school will remain in an in-school status.

Unemployed

• Request an unemployment deferment
• If you're not eligible for an unemployment deferment, inquire about an economic hardship deferment
• Request forbearance, if you’re not eligible for a deferment
• Consider alternative repayment plans

Avoid delinquency and default
You must repay your federal student loan(s). If you do not make your monthly or quarterly payments as scheduled – and you do not make any special arrangements with your loan holder – your loan may go into default. If you fail to make the required payments on your federal student loan and the account becomes delinquent by a specific number of days (depending on the type of loan you borrowed), it is in default. Once the loan is in default, the entire balance (principal, interest, and collection fees) is immediately due and payable.

External links disclaimer
Loyola Marymount University web site contains links to other web sites which are independently run sites outside of the lmu.edu domain. Loyola Marymount University is not responsible for the privacy practices, activities, or content of such independent sites. Any links to external Web sites and/or non-Loyola Marymount University information provided on university pages or returned from university Web search engines are provided as a courtesy. They should not be construed as an endorsement by Loyola Marymount University of the content or views of the linked materials. The materials on these independent sites are the opinion of the specified author(s) and are not statements of advice, opinion, support or information of Loyola Marymount University.