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Repaying Your Student Loans

What are Federal student loans?

Federal student loans are certified by a school or institution which the borrower is attending and used toward covering education-related expenses. They are:

  • Direct and FFEL Loans (Stafford, William D. Ford, Parent PLUS, Grad PLUS and consolidation)
  • Perkins Loans
  • Health Professions Student Loans (HPSL)
  • Loans for Disadvantaged Students (LDS)
Other types of loan programs, such as state-based (ex. B-On-Time Loan and CAL) and alternative or private loan programs may require the borrower to be responsible for different or additional terms other than mentioned here. Regardless of the loan program, it is always recommended that you contact your lender or servicer for details and information specific to your loan(s).
What are my responsibilities?

A borrower’s rights and responsibilities are outlined on each promissory note of commitment. Although repayment may be obvious, a borrower’s responsibilities also include, but are not limited to:

  • borrower initiated contact with lender(s);
  • repayment, regardless of any notice or information received from lender; and
  • complete an exit interview.
Any and all changes to a borrower’s information and status (ex. change in address, employment or any difficulties encountered in repayment) should be immediately forwarded to your lender. You may request a copy of your student loan rights and responsibilities from your lender.
How much do I owe?

Your total loan debt is the sum of all outstanding loan principal and interest plus any additional service fees charged by your lender or servicer. These additional fees, if applicable, are particular to an individual borrower's account. The National Student Data System (NSLDS) records your Federal student loan history (disbursement amounts, dates and lenders). This data should be checked, as you would all credit history, for updates and errors. This site is also useful for lender contact information. Your lender will remain the best source of up-to-date repayment and loan status information.

Since some student loans accrue interest while in school, during grace periods and while in deferment or forbearance and repayment, the total debt to be repaid may increase with time. Early or prepayment of all or part of a student loan may be made without any penalty to the borrower. Contact your lender if you have questions or need assistance.

Who do I pay?
Although many borrowers remain with the same lender throughout their academic experience, it is not uncommon to have multiple lenders. Also, lenders may sell, without a borrower’s consent, student loans to another holder or may utilize a servicer. NSLDS is the primary online student resource for lender and loan information. Borrowers should be notified by each lender of all repayment information. It is among the borrower’s responsibilities to update all contact information with each lender.
When do I begin repayment?

Generally, repayment is required immediately following a six month grace period associated with the loan(s). Some loan programs, such as the Perkins Loan, have extended grace periods, while others may be reduced, as in the case of a consolidation loan. Refer to the loan promissory note or contact your lender for more details.
The grace period normally begins once a student drops below half-time enrollment. This includes graduating or withdrawal from the institution. Contact your lender or servicer for details.

Student loans may be repaid, partially or in full, in advance of any repayment schedule with no penalties to the borrower.

Why do I need to repay?

Failure to repay student loans in an established and timely manner can seriously affect your credit and financial status. Late, or delinquent, payments may add late fees and affect future borrowing eligibility and options. Negative credit history may also be reported to all three major credit bureaus. Not making payments over a longer period of time, or defaulting, means you have broken your repayment commitment and payment in full may be requested from a lender. Defaulting on a student loan may result in the following.

  • Negative credit history
  • Wage garnishment
  • Collection fees
  • Suspension of a professional license
  • Withholding of tax refunds and other state and federal monies
  • Civil lawsuits
Keep in touch with your lender or servicer. They are your primary source of assistance and options if you experience problems with repayment.
How much do I pay?

Many factors influence the monthly payment amount, total payout and length of repayment of any given student loan.
These factors include, but are not limited to:

  • Amount borrowed
  • Interest rate
  • Type of repayment plan

Monthly payments can be estimated using the Federal Student Aid Repayment Estimator. Estimates can be made based on your actual loan information or by entering loan amounts manually.

Several different options exist for repayment plans to suit a variety of financial situations. For details on repayment plans available, please visit StudentAid.gov.

Deferment and Forbearance are options for temporarily postpone or reduce federal student loan payments during financial hardship or when returning to school. Contact your loan servicer to apply.

Forgiveness, Cancellation, and Discharge of your loan means that you are no longer expected to repay your loan. Certain circumstances might lead to your loans being forgiven, canceled, or discharged. Contact your loan servicer to find out if you qualify.

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. Contact your loan servicer to apply.

Repayment terms will differ between Alternative Loans. However, many Alternative Loan lenders offer incentives for timely repayment, options for repayment plans, and deferment or forbearance. It is important to take note of your repayment terms, options, and obligations in the promissory note signed for your loan.

Alternative Loans are not reflected in the National Student Loans Data System. For assistance on repayment, please contact the servicer for each alternative loan. Or, if you require assistance in determining who you owe, contact Scholarships & Financial Aid to meet with an Advisor.

The Texas B-On-Time Loan may be forgiven if certain requirements are met. If your loan is not forgiven, it is repaid to the Texas Higher Education Coordinating Board.

The Texas B-On-Time (BOT) Loan has a 6-month grace period from the date the student ceases to be enrolled at least half-time at an eligible institution. Repayment begins after the expiration of the 6-month grace period. The BOT loan has a 15-year repayment period or a minimum monthly payment of $75.00. BOT loans have a 0% interest rate.

Deferments for education enrollment or forbearance (financial hardship) are available. If the account defaults and a judgment is entered against the borrower, interest will begin to accrue at the legal rate described in the Terms and Notices from the date of judgment until the entire debt is paid in full.

Forgiven Texas B-On-Time loans must be reported to the IRS as taxable income in the applicable tax year the loan is deemed to be forgiven.

The College Access Loan is repaid to the Texas Higher Education Coordinating Board.

  • Loans have a six-month grace period from the date a borrower ceases to be continuously enrolled as at least a half-time student at an eligible institution;
  • Principal balances under $30,000 have up to a ten-year repayment period with minimum monthly payments of $50;
  • Principal balances of $30,000 or more have a repayment period up to 20 years;
  • The loan will not be sold to another lender;
  • Postponements of loan repayment and income-sensitive or graduated repayment schedules are available.

Federal Perkins Loans are repaid to Texas A&M University through the servicer ECSI. You may view your Perkins Loan balance and make payments by clicking on the Borrower/Student Login link.

Perkins Loans received at all institutions are reflected in the National Student Loan Data System.

Repayment begins and interest will begin to accrue nine months after ceasing to be enrolled on at least a half-time basis.

Contact ECSI for information on Forgiveness, Cancellation, and Discharge options.

ECSI
181 Montour Run Rd
Caraopolis, PA 15108
1-888-549-3274
www.ecsi.net/
(Texas A&M University’s ECSI School Code is RM)

Health Professions Student Loans and Loans for Disadvantaged Students are repaid to Texas A&M University through the servicer ECSI. You may view your loan balance, make payments, and learn about repayment options by clicking on the Borrower/Student Login link.

These loans must be repaid with interest within a prescribed repayment period ranging from one to twelve months. If the loan is not paid in full by the due date, both transcripts and registration will be blocked until the account is paid in full. Past due loans are subject to all necessary collection fees, attorney fees, higher interest rates, as well as negative credit reports to national credit bureaus. Information on where to repay your loan will be included on your promissory note.

If you have direct deposit (ACH) set up before applying for a Short-term loan it will take 3-5 business days from the end of the Right to Cancel period for your money to be deposited to your bank account. You may set up to authorize direct deposit of financial aid refunds through the Howdy Portal at howdy.tamu.edu, click on the My Finances tab.

Repayment is contingent upon the semester in which the loan is requested. All payments will be due on the 15th day of the month.

  • Fall/Spring loans are due approximately 90 days after the loan is applied to your student billing account.
  • Summer loans are due approximately 30 days after the loan is applied to your student billing account.
If the loan is not paid in full by the due date, both transcripts and registration will be blocked until the account balance is paid in full.