Before this happens, it is best to be prepared.
“It is important that students contact and communicate with
their lenders,” said Carol Hutaff, the director of loans at
HPU’s Office of Financial Aid. Hutaff added that students should
also ask about incentive programs that can reduce their loans.
For example, setting up automatic payments from a bank account
can reduce a loan by percentage points based on the banks policies.
certain kinds of employment, such as teaching or law enforcement,
can reduce loans substantially.
Five repayment options are available: The least expensive is
the Level Repayment Plan which allows the borrower to pay the
same amount every month for the duration of the loan.
The Graduated Payment Plan starts with low payments but they
increase after four years. Repayment under this program must
be within 10 years, and the total interest costs are higher
with this option.
The Income-Sensitive Repayment Plan is available to Stafford
and Parent Loans for Undergraduate Students (PLUS) borrowers.
Under this plan, payments can be adjusted according to your
income; however, the minimum payment must be enough to cover
the interest. Repayment under this program is 10 years and may
be extended to 15 years under special circumstances. Total interest
will be higher with this option, and you are required to reapply
The Extended Repayment Plan is available to recipients of the
Federal Family Education Loan Program (FFELP). To qualify, your
first federal loan must have been received on or after Oct.
7, 1998, and your total balance must exceed $30,000. This plan
allows a repayment over 25 years.
The Federal Consolidation Loan plan is aimed at making payment
easier for deeply indebted borrowers. Eligible loans are combined
into one loan with a longer repayment term and lower monthly
payments, sometimes by as much as 40 percent.
Students may also want to check with their lender for other
By choosing a plan that feels comfortable, you can make the
transition from college to the work force much easier.
All Stafford and Supplemental Loans for Students (SLS) borrowers
should be aware that federal regulations require them to have
an exit interview before graduating or leaving school. In fact,
you should consider talking to Hutaff before you leave HPU anyway.
Even if it isn’t required, most students find it helpful. Call
544-0208 for an appointment.