Loans are a valuable tool for financing your education. But they also require careful planning and management. Knowing the terms of your loan and understanding your responsibilities can help you stay on track with your student loans and build a strong financial future.

These resources can help:

Planning and Managing Your Loan
Repayment Options and Alternatives
Ensuring Your Financial Future

Planning and Managing Your Loan

Repayment Calculators
Use online repayment calculators to preview how long it will take you to repay your loan and what your monthly payments will be like.

National Student Loan Data System
Track your federal student loans on-line, 24 hours a day, 7 days a week with the National Student Loan Data System (NSLDS). To access the web site:

• obtain a FAFSA Personal Identification Number (PIN)
• log on to the National Student Loan Data System using your PIN, your Social Security Number, the first two letters of your last name, and your date of birth

If you think that NSLDS records are incorrect, contact your lender, your guarantee agency, or the loan servicer.

Student Financial Aid (SFA) Ombudsman
The Ombudsman serves as an independent, neutral third-party who will assist you by researching financial aid problems or complaints and recommend solutions. The Ombudsman cannot reverse decisions but will help contact other agencies on your behalf. Contact the Ombudsman as a last resort after you have attempted to resolve the issue yourself. See the Ombudsman’s website for tips about conflict resolution.

Repayment Options and Alternatives

Repayment Options
After borrowers cease to be enrolled at least half time, they begin to use their six-month grace period. Borrowers of the Federal Stafford and/or Direct Loans enter repayment after their six-month grace period expires. All repayments options, with the exception of the income-based repayment plan, require that each payment must at least equal the interest accrued on the loan between scheduled payments.

Standard Repayment
Borrowers repaying loans under the standard repayment plan pay a fixed amount of at least $50 each month for up to 10 years, not including deferment and forbearance periods. This plan generally repays the loan with the lowest interest cost to the borrower.

Graduated Repayment
Borrowers' payments are lower at first and then increase. An important feature of this plan is that no monthly payment will exceed more than three times any other monthly payment. Borrowers using this plan typically repay a greater amount of interest than they would have under the standard repayment plan.

Income-Sensitive Repayment
Monthly payments are based on annual income and total loan amounts. As a borrower's income rises or falls, so does the student loan payment amount. Borrowers must apply for this option each year.

Extended Repayment
Borrowers may repay over a 25-year period on a standard or graduated repayment plan if they have loans totaling more than $30,000 and were new borrowers on of after October 7, 1998.

Income-Based Repayment
Borrowers in repayment or entering repayment who have a partial financial hardship are eligible for income-based repayment (IBR). The Federal Government may pay interest during a portion of the repayment period. Borrowers who participate in IBR may be eligible for forgiveness of any outstanding loan balance that remains after 25 years and 300 eligible payments.

Student Loan Consolidation
If you're holding more than one student loan, loan consolidation can offer a way to reduce your monthly payments, simplify loan repayment, and lock in a lower interest rate.

Student Loan Forgiveness Programs
Students in teaching, child care, and nursing may be able to take advantage of programs that offer loan forgiveness in exchange for work in high-need areas.

Tax Benefits for Loan Repayment
In 1997, new tax laws were issued concerning college savings, payment, and repayment. Although HMC does not provide tax advice, we do wish to give you a summary of tax benefits that may be available to you as you repay your student loans. Because tax laws do change, please refer to your tax accountant for further information on these programs and how they may affect your personal tax situation. Be sure to review Tax Information for Students on the IRS website, which outlines benefits to help you repay your student loans, including:

• Student Loan Interest Deduction
• Tax Credits for educational expenses

Ensuring Your Financial Future
Keeping Track of Your Credit Maintaining a strong credit record is crucial to your financial future. The score on your credit report will determine whether banks and other lending institutions will give you loans for houses, cars and business.

It is always a good idea to check your credit report for any errors or marks that will affect your ability to borrow in the future. You can obtain your credit report from one of these three major agencies:

Equifax Information Service Center
Box 740241
Atlanta, GA 30374-0241
800/685-1111
www.equifax.com

Experian National Consumer Assistance Center
Box 949
Allen, TX 75013-0949
888/397-3742
www.experian.com

Trans Union Corporation
Box 390
Springfield, PA 19064-0390
800/916-8800
www.transunion.com

Financial Planning As you begin to take responsibility for your financial future, it is important that you learn about financial management.  This includes managing a budget, your student loans and other debt, your credit cards, and your other financial obligations. These online resources can help:

• EdWise On-Line Financial Planning, offered by EdFund
• Money Management, tips from Nellie Mae

Last Updated: October 2009