Student Financial Services
Student Financial Services


Financial Aid: Loans

Managing Your Loans
Prior to Repayment
During Repayment
Loan Consolidation
Loan Resources

 

 

 

 

Repayment of your student loans is a serious legal obligation. Therefore, it is extremely important that you understand your rights and fulfill your responsibilities.

The topics below will help you prepare for successful repayment of your loans.  The information is primarily for repayment of Stafford, Graduate PLUS, Perkins, Nursing and SPU Institutional Loans.  Parent PLUS loan repayment information may be obtained from the loan servicer and on Student Aid on the Web. Contact your lender for private loan repayment information.

Review the Terms and Conditions of Your Loans
Complete Exit Counseling Requirements
Know Who to Contact for Your Loans
Keep Your Contact Information Current
Grace Periods
Prepare for Repayment
Prepayment
Interest Rates
Interest Accrual and Capitalization
Repayment Plans
Monthly Payment Estimates
Making Payments

 

REVIEW THE TERMS AND CONDITIONS OF YOUR LOANS

Important information about your loan(s) is available on your promissory note(s), in your entrance and exit counseling, in resources provided by your loan servicer(s), and at Student Aid on the WebStudent Financial Services may also be contacted for assistance.

Copies of your promissory notes may be requested:

  • Stafford and PLUS loans: Contact your loan servicer(s). 
  • Perkins, Nursing and SPU Institutional loans: Contact Student Financial Services

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COMPLETE EXIT COUNSELING REQUIREMENTS

  • Just prior to graduation, or shortly after you withdraw or drop to less than half-time enrollment, exit counseling information will be provided.   Each spring, several exit counseling sessions are offered to students; individual appointments may also be scheduled at any time by contacting Student Financial Services.

You are responsible to read the information provided and to complete exit counseling processes within 30 days for each type of aid that you have received as noted in your exit packet.

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KNOW WHO TO CONTACT REGARDING YOUR LOANS
Loan servicers manage the billing and records for your loans and you will submit payments to the servicer for each loan.  You may have multiple loan servicers.
All loans are reported to the national credit bureaus; reviewing your credit report may also be helpful.

  • Stafford and PLUS Loan servicer information is provided in your federal loan records on the National Student Loan Data System or you may call the Department of Education Student Aid Help Line at 1-800-433-3243.
  • Perkins, Nursing and SPU Institutional loans awarded by Seattle Pacific University are serviced by Campus Partners. Student Financial Services may also be contacted for assistance.
  • Alternative (private) loan servicing and repayment information is available from your alternative loan lender(s).

If you have trouble with loan payments or have any questions, don't wait—contact your loan servicer immediately.

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KEEP YOUR CONTACT INFORMATION CURRENT
You must respond promptly to any communication you receive regarding your loan(s) until it is paid in full. Please immediately report any of the following changes to each of your loan servicers online or by phone to ensure receipt of communication from your loan servicer(s). Updating your address with the post office or with SPU does not relieve you of this responsibility.

Name change (documentation required)
Address change
Phone number change
Email changes

  • Stafford, PLUS and Alternative loan updates need to be submitted to each loan servicer.  Loan servicers may provide online resources for updating information.
  • Perkins, Nursing and SPU Institutional loan borrowers may update information at www.mycampusloan.com, or contact Student Financial Services for assistance.

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GRACE PERIOD

Following your last day of half-time or greater enrollment, your loan will enter a grace period prior to repayment.  The length of the grace period varies by the loan type:

  • Stafford, Grad PLUS and SPU Institutional loans:  six (6) months
  • Perkins and Nursing loans:  nine (9) months
  • Alternative (private) loans:  Check with your lender or loan servicer

If you return to half-time or greater enrollment before the grace period ends the entire grace period will be available when you next drop to less than half-time status, withdraw or graduate.  

If you return to half-time or greater enrollment after the grace period ends, the loans on which the grace period has expired will be eligible for in-school deferment but will not receive another grace period prior to repayment.  These loans will enter repayment immediately when the student is no longer enrolled at least half-time.

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PREPARE FOR REPAYMENT

Your grace period is an excellent time to establish a realistic budget for your income and expenses including all loan payments. Budget information and an interactive worksheet is available at CashCourse and may be available from your loan servicer(s) or your bank. 

Review of the repayment plans offered for Stafford and PLUS loans and loan consolidation options may be helpful to achieve a total monthly loan payment amount that fits within your budget.

Your loan servicer(s) will send you information about your loan prior to repayment.  Be sure to read all communications from your loan servicers carefully and contact them if you have any questions.

  • Stafford, PLUS and Alternative loan servicer(s) will send you information about the date your loan will enter repayment, the minimum payment amount, and other information.  Online information may also be available from your loan servicer(s).
  • Perkins, Nursing and SPU Institutional loans exit counseling documents provide repayment information.  You may also review repayment information online at www.mycampusloan.com.

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PREPAYMENT

Borrowers may prepay all or any part of the unpaid student loan balance at any time without penalty. Payments will be applied first to any accrued unpaid interest and fees with any remaining amount applied to principal.

  • Stafford, PLUS and Alternative loan servicers will provide assistance regarding payments made during grace and deferment periods.
  • Perkins, Nursing and SPU Institutional loans:  Contact Student Financial Services for payment information during grace and deferment periods.

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INTEREST RATES

Interest rates for Stafford and PLUS loans is specific to the loan type and loan period.  Information about interest rates for these loans is available at Student Aid on the Web.  The interest rate for each loan will be available from your loan servicer(s).

Perkins, Nursing and SPU Institutional loans have a fixed interest rate of 5.0%.

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INTEREST ACCRUAL AND CAPITALIZATION

Interest begins to accrue on unsubsidized Stafford, PLUS and Alternative loans at disbursement.  You may choose to pay the interest as it accrues, or let it accrue and then it will be added to the principal balance of your loan, a process called “capitalization.” 

Capitalization increases the cost of your loan:

Loan amount:

$3,500

Interest rate:

6.8%

Estimated monthly interest total:

$19.83

Deferment period prior to repayment:

36 months

 

Interest paid

Interest capitalized

Total paid while enrolled

$714

$0

Amount capitalized

$0

$714

Monthly payment

$50

$50

Length of repayment

7.5 years

9.6 years

Total cost

$4,450

$5,700

Total interest paid

$950

$1,486

During periods of deferment unsubsidized Stafford and PLUS loans will accrue interest; subsidized Stafford, Perkins, Nursing and SPU Institutional loans will not accrue interest during deferment periods.  During periods of forbearance unsubsidized and subsidized loans accrue interest. 

You may pay the accruing interest during a period of deferment or forbearance; any accrued, unpaid interest at the end of a deferment or forbearance period may be capitalized. 

Alternative loans may have a capitalization schedule that is more frequent; contact the lender for capitalization information.

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REPAYMENT PLANS

  • Stafford and PLUS loans provide a variety of repayment plans.
  • Perkins, Nursing and SPU Institutional loans must be paid within 10 years and do not offer a choice of repayment plans.
  • Alternative (private) loan repayment terms and repayment plan information is available from the lender or loan servicer.

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MONTHLY PAYMENT ESTIMATES

Your loan servicer will provide you with the required monthly payment amount which is determined by the loan minimum payment requirement, the repayment term for the loan and the amount of your loan.   Repayment information will be sent to you and may also be available online.  Estimates for monthly payments for various loans, loan amounts and interest rates are provided below.  For more information about student loan repayment plan information and calculators please visit Student Aid on the Web.

Stafford Loan (assumes standard repayment*)

Minimum Payment: $50/mo

Minimum Payment

Repayment Term (Months)

Loan Amount

Interest Rate

Estimated Monthly Payment

$50

90

$3,500

6.8%

$50

$50

120

$5,500

6.8%

$63

$50

120

$7,000

6.8%

$81

*Repayment plans other than Standard repayment are available and may extend your repayment term.

PLUS Loan (assumes standard repayment*)

Minimum Payment: $50/mo

Minimum Payment

Repayment Term (Months)

Loan Amount

Interest Rate

Estimated Monthly Payment

$50

95

$3,500

7.9%

$50

$50

120

$5,500

7.9%

$66

$50

120

$7,000

7.9%

$85

*Repayment plans other than Standard repayment are available and may extend your repayment term.

Perkins and Nursing Loan

Minimum Payment: $40/mo

Minimum Payment

Repayment Term (Months)

Loan Amount

Interest Rate

Estimated Monthly Payment

$40

56

$2,000

5.0%

$40

$40

119

$3,750

5.0%

$40

$40

120

$4,875

5.0%

$52

SPU Institutional Loan

Minimum Payment:$50/mo

Minimum Payment

Repayment Term (Months)

Loan Amount

Interest Rate

Estimated Monthly Payment

$50

44

$2,000

5.0%

$50

$50

83

$3,500

5.0%

$50

$50

120

$4,875

5.0%

$52

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MAKING PAYMENT
Your loan servicer(s) will provide monthly statements or coupon books for payment of your loans; electronic statement notification may also be available.  Online payments through the loan servicer’s website are an efficient option.  Automatic debit payments may be arranged through your loan servicer(s).  These payments are debited from your checking or savings account.  Some loans receive a benefit for making payments via automatic debit.  Contact your loan servicer(s) or review your servicer website(s) for additional information.


If you have trouble making your loan payment, don't wait—contact your loan servicer immediately.

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Last Updated: 10/16/2013



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