Only borrow what you NEED(Remember loans are easy to accept but they have to be repaid)
Choose subsidize loans first (U.S. Department of Education pays the interest on a Direct Subsidized Loan while enrolled and eligible or in grace period)
Rates can change over time
Stay on top of payments(Late payments affect your credit score)
You only get one grace period (If you graduate, leave school, or drop below 6 hours your grace period begins and you are not responsible for payments during this time)
Students do have the option to reduce the loan amount. If a student receives other types of financial aid (grants, scholarships, etc.) in addition to Stafford Loans, he/she may not qualify for the maximum amounts.
You need to be prepared to repay your student loans when you have completed your degree, or are no longer enrolled at least half time in an accredited program. Use the information below to make informed decisions on managing your loan payments and maintain good financial and legal standing.
Student Connections is a company that assists Lone Star College students with navigating the loan repayment process and helps to address any issues you may encounter. Student Connections may reach out to you by phone or email. You can talk to a borrower advocate at Student Connections by calling (866)311-9450.
Your loan enters a grace period after you leave Lone Star College, drop below a half-time enrollment (6 credits), or graduate. This one-time grace period lasts six months, and you must begin repaying your loan immediately when your grace period ends.
Your loan services will notify you with information about repayment. You can select a repayment plan. Generally, you have 10 to 25 years to repay your loan.
Contact your loan services immediately if you encounter problems making a payment. They can explore your options, which include:
Restructured Payment Plan
If you monthly payment does not arrive by the due date, your loan is considered delinquent. In this case, you may face additional late fees and have your delinquency reported to various national credit bureaus..
Every entity involved in your loan - your school, the financial institution that holds your loan, your loan guarantor, and the federal government - all can take action to recover the money you owe.
Typical actions include:
The U.S. Department of Education requires you to repay immediately the entire unpaid amount of your loan.
The Department of Education sues you, takes all or part of your federal and state tax refunds and other federal or state payments, and/or garnishes your wages so your employer is required to send part of your salary to pay off your loan.
The Department of Education requires you to pay reasonable collection fees and costs, plus court costs and attorney fees.
You are denied a professional license.
You lose eligibility for other federal student aid and assistance under most federal benefit programs.
You lose eligibility for loan deferments.
The Department of Education reports your default to national credit rating bureaus.
Remove loan default
You have three options to remove the default status:
Pay the loan in full
This is the fastest way to resolve your defaulted loan status.
Make nine voluntary, consecutive monthly payments on time. During rehabilitation, you can regain eligibility for financial aid after making six voluntary, consecutive monthly payments on time.
Combine all your federal education loans into a single account and get an extension on the repayment periods, allowing for lower monthly payments. This may make if easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period. Consolidating is an option as long as the loans are currently in a grace period or repayment status.