Loan Repayment Information
BORROW WISELY: COLLEGE LOANS ARE NOT ALL ALIKE
- Some are through the government. Some are through private lenders like banks.
- For some loans, often referred to as deferred, you don’t have to pay anything back until after you graduate. For others, you are expected to begin making payments while you are still in school, sometimes within a couple of months of borrowing the money.
- Some do not charge you interest while you are in school. Others begin charging you interest immediately, even if your payments do not begin until after you graduate.
- Some do not require co-signers. Some do require co-signers, who agree to pay back the loan if you do not.
- Some are set at a fixed interest rate, which stays the same throughout the loan period. Others follow a variable interest rate, which can go up or down.
- Some you can pay back early to save money on interest.
- Some have extra fees.
Where Do You Start?
We strongly recommend that all students apply for federal financial aid each year by first filing the FAFSA. Based on your FAFSA, you might get a student-aid offer that includes federal loans.
Consider borrowing through these federal student loans first, before you borrow through private student loans. The terms of the federal student loans are generally better for you.
What's next?
Continue to monitor and keep track of your overall loan debt!
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Keeping Track of your Federal Loans
Are you confused about how to keep track of your federal loans? Federal Student Aid (FSA) holds information on all federal loans borrowed under your name. Log into your account at studentaid.gov to see your overall federal loan debt, your loan servicer(s), repayment options, and more!
- Please note, this site only holds information regarding federal loans (FFELP Stafford Loans, Direct Subsidized/Unsubsidized Student Loans, Perkins, and PLUS Loans) and does not include any private/alternative loans.
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FEDERAL LOAN REPAYMENT OPTIONS
Federal Student Aid (FSA) offer multiple repayment options and resources if you are struggling with repayment. Click the link below to learn more about the different repaymention options available to you.
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FEDERAL LOAN SERVICER INFORMATION
All federal loans processed at Millersville University are processed through the US Department of Education, who use federally apporoved companies to service the loans. These are the companies that you make payments to.
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POSTPONING REPAYMENT - WHAT TO DO IF YOU CANNOT AFFORD YOUR FEDERAL LOAN PAYMENTS
If you’re in a short-term financial bind, you may qualify for a deferment or a forbearance. With either of these options, you can temporarily suspend your payments. But keep in mind that forbearance and deferment have pros and cons.
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LOAN FORGIVENESS, CANCELLATION, & DISCHARGE
In certain situations, you can have your federal student loans forgiven, canceled, or discharged. That means you won’t have to pay back some or all of your loan(s).
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PUBLIC SERVICE LOAN FORGIVENESS (PSLF)
PSLF is a program for people who work in public service in federal, state, tribal, or local government, or for a non-profit organization.
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FEDERAL LOAN CONSOLIDATION
A Direct Consolidation Loan allows a borrower to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments.
Disclaimer: Make sure you carefully consider whether loan consolidation is the best option for you. While loan consolidation can simplify loan repayment and lower your monthly payment, it also can significantly increase the total cost of repaying your loans. Consolidation can offer lower monthly payments by giving you up to 30 years to repay your loans. But, if you increase the length of your repayment period, you'll also make more payments and pay more in interest than you would otherwise.
- In fact, in some situations, consolidation can double your total interest expense. If you don't need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan.
You also should take into account the impact of losing any borrower benefits offered under repayment plans for the original loans.
- Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You may lose those benefits if you consolidate.
Federal Student Aid Loan Consolidation -
FEDERAL DIRECT LOAN DISCLAIMER
In accordance with U.S. Department of Education regulations (HEOA 489 amended HEA Sec.485B), Millersville University and the Office of Financial Aid acknowledges to students and parents that when the student enters into an agreement regarding a Title IV (HEA) loan, i.e.: Direct Stafford Loan and Direct Parent PLUS Loan that the loan will be submitted to NSLDS (National Student Loan Data System) and accessible by authorized agencies, lenders, and institutions.
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PRIVATE LOAN REPAYMENT INFORMATION
Each private/alternative lender has different repayment terms and criteria. If you have borrowed a private loan at Millersville or another institution, make sure to contact the private lender you borrowed from for more information regarding payment terms.
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PRIVATE LOAN CONSOLIDATION
Private Loan Consolidation allows a borrower to consolidate (combine) multiple private student loans into one loan. The result is a single monthly payment instead of multiple payments.
Disclaimer: Make sure you carefully consider whether loan consolidation is the best option for you. While loan consolidation can simplify loan repayment and lower your monthly payment, it also can significantly increase the total cost of repaying your loans. Consolidation can offer lower monthly payments by giving you up to 30 years to repay your loans. But, if you increase the length of your repayment period, you'll also make more payments and pay more in interest than you would otherwise.
- In fact, in some situations, consolidation can double your total interest expense. If you don't need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan.
You also should take into account the impact of losing any borrower benefits offered under repayment plans for the original loans.
- Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You may lose those benefits if you consolidate.
Once your loans are combined into a Consolidation Loan, they cannot be removed. That's because the loans that were consolidated have been paid off and no longer exist. Take the time to study the pros and cons of consolidation before you submit your application.
For more information on private loan consolidation, contact your private lender.