 Understand federal loan programs and types
 Know where and how to find your loan history
 Understand how interest accrues and is calculated
 Know what repayment options are available
 Understand borrower benefits and entitlements
 Options for postponement
 Forgiveness
 Incentives
 Three federal loan programs
 Federal Family Education Loan Program (FFELP)
 William D. Ford Direct Lending Program (Direct)
 Federal Perkins
***While there are many repayment options,
postponement options (i.e forbearance & deferment)
and other borrower benefits that are the same across
the federal student lending programs, each program
also has program specific options.***
Six Federal loan types

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
Subsidized: Only available to undergraduate students who qualify based on need.* The
student is entirely responsible for paying back the loan. The government pays the
interest while the student is in school at least half-time, while in periods of deferment
and while in grace.**
*Loans were available to a graduate student until 6/30/2012.
**Loans originated between 7/1/2012 through 6/30/2014 did not receive the
grace period subsidy.
Unsubsidized: Available to undergraduate and graduate students. The student is
entirely responsible for paying back the loan. The government does not pay for ANY
interest on the loan at ANY time.
Parent PLUS: Available to parents of dependent undergraduate students. The parent is
solely responsible for the loan and responsibility cannot and will not be transferred even
through the process of consolidation. The loan is unsubsidized in nature and is
awarded based on credit.
Graduate PLUS: Available to graduate students. The student is solely responsible for
the loan. The loan is unsubsidized in nature and is awarded based on credit.
Consolidated: Available for all federal loan types that are under the same borrower’s
name and responsibility. May be subsidized or unsubsidized dependent upon the loans
included in the consolidation.
Perkins: Available to undergraduate and graduate students who demonstrate
EXCEPTIONAL NEED. The student is solely responsible for paying back the loan. The
loan is subsidized in nature.
 Log into www.nslds.ed.gov

If you do not already have your PIN you will need to retrieve it
from www.pin.ed.gov
 FFELP
 Direct
 Contracted by the lender to provide the
billing and customer service for a loan
 Some lenders will service their own loans
 U.S. Department of Education contracts
four main federal student loan servicers
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

Sallie Mae (soon to become Navient)
Great Lakes
PHEAA/Fed Loans
Nelnet
 Accrues daily
 Capitalizes after periods of Grace, Deferment and Forbearance*
*Perkins loans are the only exception
𝑂𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝐵𝑎𝑙𝑎𝑛𝑐𝑒 × 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑅𝑎𝑡𝑒 = 𝑌𝑒𝑎𝑟𝑙𝑦 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐴𝑐𝑐𝑟𝑢𝑎𝑙
𝑌𝑒𝑎𝑟𝑙𝑦 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐴𝑐𝑐𝑟𝑢𝑎𝑙
= 𝐷𝑎𝑖𝑙𝑦 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐴𝑐𝑐𝑟𝑢𝑎𝑙
365.25 𝑑𝑎𝑦𝑠
Fees
Including late fees, processing fees, etc.
Interest
Any interest accrued up to the day of the
payment
Principal
Remainder of the payment, if any, after all
fees and interest are paid
 Available for FFELP & Direct Subsidized/Unsubsidized,
Graduate PLUS, Parent PLUS, Consolidated and Perkins loans
 10 year maximum repayment period*
*Consolidated loans may have a repayment period up to 30
years depending on the amount of the original consolidation
 Monthly payment amounts are the same each month
 All loans enter repayment in this plan unless you request
otherwise
 One of the shortest repayment periods if all payments are made
as scheduled
 Usually results in the least amount of interest being paid over
the life of the loan
 Available for FFELP & Direct Subsidized/Unsubsidized,
Graduate PLUS, Parent PLUS and Consolidated loans
 10 year maximum repayment period*
*Consolidated loans may have a repayment period up to 30
years depending on the amount of the original consolidation
 Payments start lower and increase every two years
 Minimum payment will never be less than estimated monthly
interest accrual
 Payment increases will never result in a payment amount being
higher than three times the amount of any other payment
installation
 More interest will be paid over the life of the loan
 Available for FFELP & Direct Subsidized/Unsubsidized,
Graduate PLUS, Parent PLUS and Consolidated loans
 25 year maximum repayment period
 Must be a new borrower as of October 7, 1998
 Must have $30,000 in outstanding Direct or FFELP loans
SEPARATELY
 Payments amounts can be equal each month or can be
graduated payments*
*Extended Graduated Repayment Plan
 More interest will be paid over the life of the loan
 Available for FFELP & Direct Subsidized/Unsubsidized,
Graduate PLUS, Consolidated* loans
*Consolidated loans cannot contain Parent PLUS
loans
 25 year repayment schedule ending in forgiveness
 Payments based on total federal loan debt, family size, previous
year’s Adjusted Gross Income (AGI) and 150 percent of poverty
line.
 Annual amounts of payments due are no more than 15 percent*
of the difference between your AGI and 150 percent of poverty
line based on family size
*New borrowers on or after July 1, 2014 have a maximum
annual payment of 10 percent
 MUST recertify annually
. 𝟏𝟓 𝑨𝑮𝑰 − 𝟏𝟓𝟎% 𝒑𝒐𝒗𝒆𝒓𝒕𝒚 𝒍𝒊𝒏𝒆 = 𝑴𝒂𝒙 𝑨𝒏𝒏𝒖𝒂𝒍 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑨𝒎𝒐𝒖𝒏𝒕
𝑴𝒂𝒙 𝑨𝒏𝒏𝒖𝒂𝒍 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑨𝒎𝒐𝒖𝒏𝒕
= 𝑴𝒐𝒏𝒕𝒉𝒍𝒚 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑨𝒎𝒐𝒖𝒏𝒕
𝟏𝟐 𝑴𝒐𝒏𝒕𝒉𝒔
 The monthly payment can never be higher than the standard or
permanent standard ten year payment amount.
 If your AGI falls below 150 percent of the poverty line based on family
size you will automatically qualify for a $0 payment.
 The government will pay the difference between what is accruing in
interest and what you pay in interest on subsidized loans only.
 Only occurs for first three consecutive years

ONLY available for Direct Subsidized/Unsubsidized, Graduate PLUS
and Consolidated loans


FFELP loans can be consolidated as a Direct loan
Direct Consolidation loans that have an application date on or
after July 1, 2006 can contain Parent PLUS loans

25 year repayment schedule ending in forgiveness

Payments are the lower of:
 1. Payment amount based on 12 year loan term
 2. 20% of your monthly discretionary income
 3. Outstanding Principal Balance x Income Percentage Factor

MUST recertify annually

Interest capitalizes yearly and the government does not pay for any
interest accrued.
 Will stop capitalizing after the amount of capitalization reaches
10% of the original principal balance

Available for Direct Subsidized/Unsubsidized, Graduate PLUS,
Consolidated* loans
*Consolidate loans cannot contain Parent PLUS loans

All prior loans must have been paid in full before October 1, 2007
and must have a Direct loan disbursed after October 1, 2011.

20 year repayment schedule ending in forgiveness

Payments based on total federal loan debt, family size, previous
year’s Adjusted Gross Income (AGI) and 150 percent of poverty line.

Annual amounts of payments due are no more than 10 percent of
the difference between your AGI and 150 percent of poverty line
based on family size

Payments will never be more than a standard payment amount
based on a ten year loan term
 MUST recertify annually
 The government will pay the difference between what is accruing
in interest and what you pay in interest on subsidized loans only.
 Only occurs for first three consecutive years
 Interest will capitalize if you no longer qualify for the lower
payment or if you fail to recertify at the end of the 12 month
period
 No more than 10 percent of the Outstanding Principal Balance at
the time you enter PAYE will be capitalized.
 Available on FFELP loans only
 Only available for five years over the life of the loan
 Applied like a forbearance
 Payment is the greater of the estimated monthly interest
accrual or four percent of your gross monthly income
 MUST recertify annually
 Any unpaid interest will capitalize
 Available for FFELP & Direct Subsidized/Unsubsidized,
Graduate PLUS, Parent PLUS and Consolidated loans
 Forbearance will pause your loan term
 May be no limit, depending on your lender
 Applied in 12 month increments
 Any unpaid interest will capitalize
 Low-Income Extension
 Maximum 10 years
 Based on most recent Income Protection
Allowance Tables
 Must recertify every year
 Reduced Payment
 1. $10 per month for one year
 2. Agreed upon amount between school and
borrower
 Deferment
 Must meet pre-qualifications
 Government will pay for interest on subsidized
loans only
 Forbearance
 May or may not have to meet pre-qualifications
 Government will not pay for any interest
regardless of the loan type
 Available for all FFELP, Direct and Perkins loans
 Must be enrolled at least half-time at a Title IV eligible
school
 Available for all FFELP and Direct loans
 Must be enrolled at least half-time at a Title IV eligible
school during the Spring semester and are going to
enroll at least half-time for the upcoming Fall semester
 Available for FFELP and Direct Parent PLUS loans
 The student must be enrolled at least half-time at a Title
IV eligible school
 Available for all FFELP/Direct Parent and Graduate
PLUS loans disbursed on or after July 1, 2008
 Acts as a six month grace period
 Automatically applied to Graduate PLUS loans, but
Parent PLUS borrowers must specifically request
 Graduate Fellowship: Available for FFELP/Direct
Subsidized, Unsubsidized and Consolidated loans as well as
Perkins loans. Student must be in a full-time course of study
in a Graduate Fellowship Program that requires a B.A. to be
accepted.
 Rehabilitation Training: Available for FFELP/Direct
Subsidized, Unsubsidized and Consolidated loans as well as
Perkins loans. Must be enrolled full-time in a certified
rehabilitation program.
 Internship/Residency: Available for FFELP Subsidized,
Unsubsidized and Perkins loans if the borrower began
borrowing prior to July 1, 1993. Must be in a medical
internship or residency program. The program must require a
B.A. for acceptance either lead to a degree or certificate or be
required to begin professional practice. Maximum 24 months
total may be used.
 Available for FFELP, Direct and Perkins
 Borrowers before July 1, 1993 are eligible for two years
 Borrowers on or after July 1, 1993 are eligible for three
years
 Must be unemployed or working less than 30 hours per week
 Two ways to qualify
 1.) Receive unemployment benefits
 2.) Be seeking full time work in a variety of fields and
registered with an unemployment agency
 Unemployment agency can be public or private, but
cannot be a “temporary employment” agency or school
placement office
 Available for FFELP*, Direct and Perkins
*Only new FFELP borrowers on or after July 1,
1993
 Maximum time allotted = three years
 Four Options
 1.) Receive Economic Hardship Deferment from another
federal student loan program for the same time period
 2.) Receive federal or state public assistance
 3.) Serving as Peace Corps volunteer
 4.) GMI (gross monthly income) does not exceed the larger
of the Federal Minimum Wage Rate or 150% of the poverty
guideline based on family size
 Available for FFELP, Direct and Perkins
 Must be serving active duty and given orders involved with a
war or other military operation or national emergency
 National Guard duty and give orders involved with a war or
other operation or national emergency as called by the
President or Secretary of Defense
 Must be performed for more than 30 consecutive days.
 Must provide a copy of military orders
 May defer for an additional 180 days following completion of
service
 If you are retired, Reserve or National Guard and are
called to active duty during a period you are enrolled in
school, you may request up to an additional 13 months
 Discretionary: Available for all loan types. Do not have
necessarily have to qualify. Maximum time frame on Direct and
Perkins is three years. FFELP loans maximum time frame is
dependent on the lender.
 Mandatory: Available for FFELP & Direct loans. Must meet
qualifications and will be applied even if discretionary
forbearance has been exhausted. Multiple types.
 Internship/Residency: Same requirements as the
deferment but is applicable for all new borrowers after July 1,
1993.
 Excessive Debt: If 20% of the borrower’s GMI is less than
the total student loan payment the borrower will qualify for
12 months. Maximum three years.
 National Disaster: If you live or work in an area that has
been declared a national disaster by FEMA. No maximum
time frame, but it ends when FEMA’s incident period ends.
 Available for FFELP and Direct loans
 MUST be a new borrower as of October 1, 1998
 MUST teach in a Title I school for five consecutive years
 MUST teach full-time:
 Special Education for elementary or secondary school
students
 Mathematics for secondary school students
 Science for secondary school students
 As a highly qualified teacher in a specific subject area as
a secondary school teacher
 As a highly qualified teacher in an elementary school
 Must have a chief administrative officer certify your eligibility
 Principal
 Assistant Principal
 Superintendent
 ONLY available for Direct loans
 Can consolidate FFELP and Perkins loans into a Direct
loan
 MUST be employed full-time for ten consecutive years in a
public service position
 Federal, state, or local government agency, entity, or
organization
 501(c)(3)
 Private not-for-profit that are not tax exempt
 MUST make 120 on-time payments on or after October 1,
2007 that are at or above a standard payment amount based
on a standard ten year loan term unless you are in an IBR,
ICR or PAYE plan
 Must be full payments made no later than 15 days after
the due date
 Must be separate payments
 Perkins
 The school decides whether an incentive will
be offered
 FFELP
 Depends on the lender
 If you lose the incentive, you will not get
it back!
 Direct
 .25% interest rate reduction for using autodebit
 Origination fee rebate for loans disbursed
prior to July 1, 2013
 UCCS Office of Financial Aid, Student Employment and Scholarships:
www.uccs.edu/finaid
 UCCS Mountain Lion Money Matters
www.uccs.edu/moneymatters
 National Student Loan Data System
www.nslds.ed.gov
 Federal Student Aid PIN
www.pin.ed.gov
 Department of Education Student Loans
www.studentloans.gov
 Federal Student Aid
www.studentaid.ed.gov