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You are here:  Financial > Loans > Default Prevention

What to Expect

A student loan is a serious obligation and must be repaid regardless of the following:
  • whether you finish school
  • file bankruptcy
  • have a job in your field
  • Change your name, address, telephone number, etc.
  •  Change Schools
  •  Withdraw
  • Transfer
Grace Period: Your federal direct student loan(s) have a 6 month grace period prior to repayment. This grace period begins the day after you graduate, withdraw from school or drop below half time status (6 credits).
Deferment: You have the right to postpone repayment of your loan(s) if you qualify for a deferment. Please contact the Dept. of Education at 1-800-4FED-AID or on-line at for options that may be available to you.
Forbearance:If you are unable to make a scheduled payment due to special circumstances, you may request a forbearance through the Dept. of Education.  You should contact the Dept. of Education immediately if you are experiencing problems with repayment at 1-800-4FED-AID or online @

More information -- Deferments

Under certain circumstances you can receive a deferment that allows you to temporarily postpone loan repayments.  A deferment is a period in which repayment of the principal balance is temporarily postponed if you meet certain requirements.  During a deferment, the government pays the interest on subsidized loans.

For all unsubsidized loans and PLUS loans, you are responsible for paying the interest that accrues during the deferment period, or allow it to be capitalized (added to the principal balance).

Deferment Conditions:

·         Enrolled at least half time at an eligible postsecondary school.

·         Study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled.

·         Unable to find full-time employment (for up to three years).

·         Economic hardship, which includes Peace Corps Service (for up to three years).

·         A member of the National Guard or other reserve component of the U.S. Armed forces who is called or ordered to active duty while enrolled at least half-time at an eligible school or within six months of having been enrolled at least half-time.

·         While borrower is on active duty during a war or other military operation or national emergency and if the borrower was serving on or after Oct. 1, 2007.

Types of Repayment

6 months from your last date of attendance, you will be required to begin making payments on your student loan(s).
The following is a list of some of your payment options:
  • Prepayment-make payments while in school or during your grace period
  • Standard Repayment-Monthly payments remain the same throughout repayment
  • Graduated Repayment-Payment begins with small amounts that increase over time
  • Income Sensitive Repayment-Payments are based on a percentage of your gross monthly income and are adjusted annually.
  • Income Based Repayment-Your monthly payment is capped at an amount that is intended to be affordable based on your income and family size & your qualifications are reviewed annually.  Payments can be as low as zero each month depending on your income.
  • Pay As You Earn Repayment Plan-Your monthly payments are based on your income & family size with adjustments annually depending on income but to qualify you must have a partial financial hardship.  You have a partial financial hardship if the monthly amount you would be required to pay under the 10 year Standard Plan is higher than the monthly amount calculated under the Pay As You Earn Option.
  • Income-Contingent Repayment Plan-Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans. Your payments change as your income changes

For more information on repayment options, please contact the Dept. of Education at 1-800-4FED-AID or .
Please use the following information to contact the FSA Student Loan Ombudsman Group. 
Via Telephone: 877-557-2575
Via Fax: 202-275-0549
Via Mail:            U.S. Department of Education
                        FSA Ombudsman Group
                        830 First Street, N.E., Mail Stop 5144
                        Washington, D.C. 20202-5144

Default Prevention Contact

If you have questions about Loan Default or are interested in the various deferment options, please contact:
Danielle Ross
Financial Aid Counselor / Default Prevention Specialist