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.
To Borrow or Not To Borrow
By accepting a Federal 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.
As stated in the Federal Student Aid publication Your
Federal Student Loans – Learn the Basics and Manage Your
Debt:" REMEMBER:Federal student
loans are real loans, just like car loans or mortgage loans. You must repay a student loan even if your financial
circumstances become difficult. Federal student
loans usually can’t be written off in bankruptcy. They
can’t be canceled because you didn’t get the
education or job you expected, and they can’t be
canceled because you didn’t complete your education (unless you
couldn’t complete your education because your school
closed)."
St. John's University in accordance with federal regulation
reports all loan borrowing, student enrollment status and changes
in enrollment status to the National Student Loan Data System
(NSLDS).
How to Borrow Wisely:
- St. John's Office of Student Financial Services encourages
students to borrow responsibly and to use the
federal loan repayment calculators to plan and manage their
debt.
- 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, regularly visit
the National Student Loan Data System (NSLDS) to monitor the status of your
loans and your repayment history and repay your loan on time.
Contact information for the FSA Student Loan
Ombudsman:
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