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Repaying Your Student Loan

Learn more about your responsibilities as a borrower and about the exit loan counseling requirement.

Know your student loan repayment obligation.

FA TVA student loan is a serious and important financial obligation, and you must repay your loan.

  • You are required to repay your loan(s)regardless of whether you complete your education, are able to find employment, or are satisfied with your education.
  • Repayment is required according to the terms of your promissory note.
  • You must provide your loan servicer with corrections to your name, address, references, Social Security number, and driver's license information.
  • You may be able to apply for deferment, forbearance, or cancellation of your loan payments. (Refer to your promissory note.)
  • If you do not apply for deferment or cancellation, you must pay your loan(s) as scheduled.
  • You can prepay all or part of your loan(s) at any time without penalty.
  • You may be eligible to defer repayment if you go to another institution of higher education. Contact Student Business Services or the University's billing agent, Affiliated Computer Services (ACS), (866) 575-4517.

Complete your exit loan counseling.

If you are a student loan borrower, federal regulation requires you to complete exit loan counseling.

  • You should complete exit loan counseling when you:
    • Graduate
    • Fall below half-time student status (less than six units)
    • Withdraw from classes
    • Do not attend for a quarter
    • Have a Long Term Loan Documentation (LCOD) hold on your student account
  • You satisfy the requirement when you:

Begin your student loan repayment.

You must start repayment after the grace period ends.

  • The grace period begins when you:
    • Graduate
    • Fall below half-time student status (less than six units)
    • Withdraw from classes
    • Do not attend for a quarter
  • The length of the grace period depends on the loan program:
    • Unsubsidized Stafford loan: Six months
    • Subsidized Stafford loan: Six months
    • Perkins loan: Nine months

Apply for loan deferment, cancellation, or consolidation (if necessary).

Note:

The information below pertains specifically to Perkins and institutional loan borrowers unless stated otherwise.

Deferment is a period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make payments of loan principal and sometimes interest. Deferment of your Perkins or Institutional loan may be granted if:

  • You are enrolled at least half time at an accredited institution
  • You are a member of the armed forces or various public or private volunteer organizations (e.g., Peace Corps or VISTA)
  • You are in advanced professional training

Get deferment forms for Perkins borrowers at the ACS website.

Cancellation of your obligation to repay your Perkins loan may be granted if you are employed in:

  • Teaching
  • Early intervention services
  • Law enforcement or corrections
  • Nursing or medical technician position
  • Child or family services
  • Head Start
  • Military

All loans can be discharged for total and permanent disability and death.

Consolidation combines all of your federal loans into one loan.

  • You must be in your grace period or repayment period to apply for consolidation.
  • Your interest rate will be lower if you consolidate during the grace period.
  • Your interest rate will be fixed for the length of the loan.
  • You may include your Perkins loan, but once consolidated, you are no longer eligible for the cancellation options listed on your Perkins promissory note. And, under consolidation interest will accrue similar to an unsubsidized loan. To request a copy of your Perkins promissory note, e-mail Student Business Services, or call (858) 822-4727.

See important general loan consolidation information for graduating borrowers.

Consolidation information for all borrowers is available at the Federal Student Aid websites.

For more specific information, read your promissory note(s), or contact your loan servicer.

Work with your loan servicer.

Find your lender:

Resolve a dispute with your lender/ loan servicer:

  • If you are unable to resolve a dispute with your lender/servicer concerning the terms of your student loan, you may contact the Department of Education Ombudsman:
    Contact via postal mail:
    U.S. Department of Education
    FSA Ombudsman Group
    830 First Street, N.E., Mail Stop 5144
    Washington, DC 20202-5144
  • Alternatively, contact the Ombudsman by using the online submission form.

Don't fail to repay your student loan(s).

Note:

If you cannot meet the repayment schedule on your University-based student loan(s), contact the Loan Administration Office, (858) 822-4727.

If you are delinquent on your student loan(s):

  • You may have to pay late fees, collection costs, and/or interest in addition to the loan amount.
  • Your credit rating may be adversely affected.
  • Your state income tax refund could be withheld.
  • Your wages may be garnished.
  • You may be ineligible for further student aid, deferments, forbearances, and loan consolidation.

Addendum to Perkins Loan borrowers

Learn about UCSD's default rate.

The U.S. Department of Education provided the official fiscal year 2009 national student loan cohort default rate, which has risen to 8.8%, up from 7% in fiscal year 2008. The cohort default rates increased for all sectors:

  • From 6% to 7.2% for public institutions
  • From 4% to 4.6% for private institutions, and
  • From 11.6% to 15% at for-profit schools.

A cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year, October 1 to September 30, and default or meet other specified conditions prior to the end of the next fiscal year.

The UC San Diego student loan default rate is 1.9%, compared to the national average of 8.8%.

Information on the national student loan default rate, as well as rates for individual schools, states, types of postsecondary institutions, and other sectors of the federal loan industry are available from the U.S. Department of Education.

Students who need further information about defaulted federal education debit may wish to visit the Department of Education at MYEDDEBT.com. The Department has many options available to borrowers to resolve their defaulted federal education debt, so read about your options before deciding on the right plan.

Questions?

Contact Student Business Services, (858) 822-4727, for help from a loan counselor.