Plus IconLOAN REPAYMENT

 

Basic INFORMATION

When you withdraw (either officially or unofficially), drop below half-time enrollment status, or graduate, you will be required to begin repayment of any student loans you received. In addition to this page, we also recommend you visit https://studentaid.ed.gov/sa/repay-loans.

This page will refer to servicer in place of lender, as they are who you will deal with when in repayment.

Exit Loan Counseling

Utah Valley University is required to notify students of the exit loan counseling requirement when a student withdraws (either officially or unofficially), drops below half-time enrollment status, or graduates. Each month we will notify students who withdrew or dropped below half-time enrollment status. Students who graduate will be notified at the end of the semester.

The notification is sent to the email address the student provided on the FAFSA, not their myUVU email address. The email contains a link to the online version of exit loan counseling found at studentloans.gov as well as a PDF version of the Exit Counseling Guide for Federal Student Loan Borrowers.

Students will receive an exit loan counseling requirement in the Financial Aid Menu in their myUVU student account. Once the student has completed exit loan counseling the requirement will be satisfied.

If you have questions, please contact the Financial Aid and Scholarships Office to speak with a Financial Aid and Scholarships Office Counselor.

Students who have borrowed a Perkins loan must complete exit counseling separately. Please contact the Collections Office by calling 801-863-8611 to schedule your exit interview. You may also complete the Perkins exit counseling online. Visit the Perkins Exit Loan Counseling page for more details.

GRACE Periods

After you graduate, leave school or drop below half-time enrollment, you are entitled to one grace period for Direct and Perkins loans. During this time (which is typically six months for Direct and nine months for Perkins) you are not expected to make payments.

Grace periods are day-specific. Your grace period begins on the day immediately following the day you stop attending school at least half-time and ends on the day before the repayment period begins.

The interest on subsidized loans is paid by the Federal Government during your grace period. However, for Direct Stafford loans made on or after July 1, 2012, and before July 1, 2014, interest will now accrue during all periods of non-enrollment. The repayment period still begins six months after the student is no longer enrolled at least half-time, but the interest that accrues during those six months will be payable by the student rather than by the Federal Government.

On unsubsidized loans, you are responsible for the interest, and the unpaid interest is capitalized (added to the loan principal) at the time of repayment.

Repayment begins the day after your grace period ends; your first payment is due within 60 days. You should receive communication from your servicer during your grace period. If not, contact your servicer directly.

Determining Your SERVICER

The National Student Loan Data System (NSLDS) provides comprehensive information about your federal loan history, including servicers and their contact information, loan totals, and loan status. You may access NSLDS by logging onto www.nslds.ed.gov. Your FSA ID is required to access your information. If you need to create or edit your FSA ID, visit https://fsaid.ed.gov/npas/index.htm.

REPAYMENT Options and Payment Amounts

You have several repayment options available to you with federal student loans. Your servicer will automatically set up your loan on the standard repayment plan. If you prefer another repayment plan, simply call your servicer to discuss your options. You also have the option to change your repayment plan on an annual basis. You can view repayment plan options with your specific servicer or at the Federal Student Aid website.

When deciding if borrowing student loans is the right choice for you, be mindful that loans are funds you have to pay back. Your payments will vary depending on the amount and type of loans that you've borrowed, the repayment plan that you select, and potentially your income. There are several repayment calculators offered by various organizations to help students plan for loan repayment. You can link to the Federal Student Aid calculator

The following chart displays figures based on the standard repayment plan with 7% interest. When considering how much to borrow, we recommend that you refer to www.nslds.ed.gov for your loan balances and interest rate(s), and to www.studentaid.ed.gov for repayment information and calculators. This information will help you determine what your loan repayment will be. 

Loan Repayment Chart

Please be mindful that this chart is based on a ten year repayment plan and these amounts are only estimates of what your payments will be. There are different repayment options available. Interest rates vary each year; therefore, your loans will have different interest rates up to 6.8% which will change your loan repayment amount. Perkins loans have an interest rate of 5%. We encourage you to contact your loan servicers to help you determine your exact repayment amount and to gain information on your repayment options.

If you think you will have trouble making your loan payments, be sure to contact your servicer immediately. They can help you change your payment plan to one that better fits your budget, or discuss deferment or forbearance options that will allow you to postpone your payments.

If you fail to make timely payments, your loan(s) will become delinquent and eventually will go into default. Failure to make the required payments on time could lead to serious consequences, such as a damaged credit rating, garnishment of wages and tax refunds, collection fees and late fees, and loss of eligibility for future financial aid.

There are also options for loan forgiveness for certain public service careers (view https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation for more information) and loan consolidation (view https://studentaid.ed.gov/sa/repay-loans/consolidation for more information).