Avoid Default

Understanding Your Repayment Options

Student loan repayment does not have to be a burden.  Borrowers have many options for repayment. Consult with your loan servicer on the various repayment plans offered to determine if an alternative payment plan can meet your financial needs. Please click here for a general description of different repayment plans - one may fit your financial condition.

Missing or being late on student loan payments can affect your future very negatively. When you get in a crunch and see that making the payment is not possible, the best way to handle the situation is to contact your lender and explain your circumstances.

Missing payments can result in default.  If the student loan defaults, borrowers may:

• experience wage garnishment, income tax offset, suspended professional licensure, and/or denied/derogatory credit being reported to national credit reporting agencies;
• become ineligible to receive other assistance from federal student programs; and/or
• be required to pay all charges and costs (including attorney fees) permitted by law for the loan collection and possible other legal action.

Options such as deferment or forbearance may be available to assist you.

A deferment allows you to postpone student loans payments for a specified amount of time.  You are still responsible for the loan, and, at the end of the deferment, the loan will enter repayment.  You may be responsible for payment of the accrued interest on your account while you are in a deferment status. Consult with your student loan servicer to determine if you are responsible for the interest during the deferment period. At the expiration of the deferment, you will be responsible for making payments.

Deferments you may be eligible to receive include:

•  Economic hardship
•  In-School enrollment
•  Unemployment
•  Military deployment and
• Similar situations.

Forbearance allows you to suspend payments on your student loans for a specific amount of time under certain circumstances.  While in forbearance, your loan accrues interest that if not paid will be capitalized when the forbearance ends.  When the forbearance ends, the loan will enter repayment and you will be responsible for making payments.

To determine eligibility for deferment or forbearance, please contact your student loan servicer.

To contact us:
Student Loans
Attn: Default Prevention
2600 Lakeland Terrace
Jackson, MS 39216
Phone: 800.362.1304
Fax: 601.321.5584
E-mail: msaffold@esfweb.com