Loans are a major form of self-help aid for students. As part of
your award letter, you may be offered a loan. A loan must be repaid
in full, including any interest and fees. Student loans have long
repayment periods and generally repayment will not begin until you
leave school. Interest rates vary, depending on the type of loan
you borrow. The promissory note you sign will contain the exact
terms of the loan you are borrowing. Keep your copy for
reference.
Important Announcement for Graduate and Law
Students
President Obama on August 2, 2011 signed into
law the Budget Control Act of 2011. Under this Act in-school
interest subsidy for graduate and professional students was
eliminated. Effective July 1, 2012 Federal
Direct Subsidized loans will no longer exist on the graduate and
professional level. It is
important to note that the Act did not impact loan limits. They
remain unchanged.
To Borrow or Not To Borrow
By accepting a Stafford Student Loan, you incur a binding
obligation to repay the loan in full, including interest and any
applicable fees. It is essential that when you plan for educational
costs, you also plan for future repayment of any amounts you have
borrowed. When making the decision whether or not to accept a loan,
you should be aware of all the requirements, interest rates,
repayment options, schedules and deferment options.
How to Borrow Wisely
- Don't borrow without first looking into other methods of
financing your education (scholarships and assistantships, for
example).
- Look into local resources of financial aid from community
organizations and civic groups.
- Repay your debt as soon as possible. The longer you owe, the
more you owe.
- To help secure your financial future, monitor the status of your
loans and your repayment history and repay your loan on time.
Repaying Your Federal Student
Loan
St. John's School of Law in conjunction with the Office of Student
Financial Services has provided this helpful summary of
Planning and Preparing for Repayment of Federal Student
Loans. Here you will find repayment options, cosolidation
options, payment programs and answers to frequently asked
questions.