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Loan Information

Lender Codes and Programs
A list of lenders which use the FAME guarantee and offer some or all of the benefits of the Federal Family Education Loan Program (FFELP) loans.

FFELP Interest Rates
Click here for current and prior year Federal Stafford and PLUS Loan interest rates.
Click here for future Federal Stafford Loan Rates for Undergraduate Students

Alternative Loan Programs
These loans can be used to pay the balance to the college after financial aid has been applied.

Repaying Your Federal Student Loans
Federal student loans are real loans: You must repay the money you borrowed.


Consolidation Loans
A consolidation loan is when multiple federal student loans are purchased by a lender and combined into one new loan resulting in a single, lower monthly payment for the borrower.

NSLDS
The National Student Loan Data System (NSLDS) allows students to view their loan history, including amounts borrowed, the lender and the servicer. This service is provided by the U.S. Department of Education.


go to topBorrower Rights and Responsibilities
As a borrower of a federal student loan, you have certain rights and responsibilities:

You have a right to:
  • Be informed by your lender, servicer or school of:
    • The contact information of the lender or servicer that holds your loan.
    • The amount of your total loan debt including principal, interest and any other fees or charges.
  • A grace period and an explanation of what this means.
  • A maximum of ten years to repay your student loan (unless you are approved for a deferment, forbearance or make other payment arrangements).
  • Prepay your loan in whole or in part at any time without an early repayment penalty.
  • Request a deferment or forbearance for a certain defined period, if you make the request and qualify.

You are responsible for:
  • Repaying your entire student loan according to the terms of your promissory note even if you do not complete your academic program, are dissatisfied with the education you received or are unable to find employment after you graduate.
  • Making your monthly loan payments on time even if you do not receive a billing statement from the servicer of your loan.
  • Completing and submitting all requested forms and documents to your school, lender or servicer.
  • Maintaining copies of all your loan documents for your records.
  • Notifying your school, lender or servicer of changes to your:
    • Name
    • Address
    • Telephone number
    • Enrollment status

go to topRepayment Plans


FFELP Loans

There are four basic repayment plans available for your FFELP Stafford loans:

Standard Repayment Plan: With the Standard Repayment Plan, you will pay equal monthly payments of a minimum of $50 per month. Your monthly payment may be higher, depending upon the amount of the loan. The maximum repayment period is 10 years.

Graduated Repayment Plan: Under the Graduated Repayment Plan, your payments will be lower at first and then increase over time. Each payment must be at least enough to cover the interest that accrues. Generally you will repay the loan within 10 years.

Income Sensitive Repayment Plan: The Income Sensitive Repayment Plan bases your monthly payment on your annual income and your loan amount. As your income increases, so will your monthly payments. Each payment must be at least enough to cover the interest that accrues.

Extended Repayment Plan: The Extended Repayment Plan is available to borrowers who borrowed their first loan on or after October 7, 1998 and who owe more than $30,000. Under this plan, your payments can either be fixed or graduated, and the maximum repayment period is twenty-five years.

Income-Based Repayment (IBR): Under this plan, your required monthly payment amount will be based on your income during any period when you have a partial financial hardship. Your monthly payment amount may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you repay under this plan and meet certain other requirements over a specified period of time, you may qualify for cancellation of any outstanding balance on your loans. Contact your loan servicer for more information.

Sample Monthly Payment Chart - Federal stafford & Grad PLUS Loans:

Loan Amount

Interest Rate

5%

6%

7%

8.5%

$5,000

$53.03

$55.51

$58.05

$61.99

$6,000

$63.64

$66.61

$69.67

$74.39

$7,000

$74.25

$77.71

$81.28

$86.78

$9,000

$95.46

$99.92

$104.50

$111.58

$10,000

$106.07

$111.02

$116.11

$123.98

$15,000

$159.10

$166.53

$174.16

$185.97

$20,000

$212.13

$222.04

$232.22

$247.97

$25,000

$265.16

$277.55

$290.27

$309.96

*Please note: The amounts listed are estimates using an interest rate of 8.25%. You will receive exact payment amounts before you begin repayment.

Direct Loans

There are also four basic repayment options available for Direct Stafford Loan borrowers:

Standard Repayment Plan: With the Standard Repayment Plan, you will pay equal monthly payments of a minimum of $50 per month. Your monthly payment may be higher, depending upon the amount of the loan. The maximum repayment period is 10 years.

Extended Repayment Plan: Under the Extended Repayment Plan, your monthly payments will be at least $50, and you can extend your repayment period for up to 30 years. The repayment amount and length of repayment will depend on the amount of your loan.

Graduated Repayment Plan: Under the Graduated Repayment Plan, your payments will be lower at first and then increase steadily over time. Each payment must be at least enough to cover the interest that accrues. The length of repayment will depend upon the amount of your loan.

Income Contingent Repayment Plan: The Income Contingent Repayment Plan bases your monthly payment on your annual income and your loan amount. As your income increases, so will your monthly payments. Each payment must be at least enough to cover the interest that accrues.

Income-Based Repayment (IBR): Under this plan, your required monthly payment amount will be based on your income during any period when you have a partial financial hardship. Your monthly payment amount may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you repay under this plan and meet certain other requirements over a specified period of time, you may qualify for cancellation of any outstanding balance on your loans. Contact your loan servicer for more information.

Perkins Loans

In the Federal Perkins Loan program, your payment depends upon the amount of the loan. Generally, your minimum monthly payment will be $40. However, your payment may be higher depending on your loan balance.

Sample Perkins Loan Repayment Chart
Total Borrowed

$10,000
$15,000
$20,000
Number of Payments
$10,000
$15,000
$20,000
Monthly Payment
$123
$184
$245
Total Interest Charges
$4,718
$7,077
$9,437
Total Repaid

$14,718
$22,077
$29,437


*Please note: The amounts listed are estimates using an interest rate of 5%. You will receive exact payment amounts before you begin repayment.
go to topLoan Discharge/Cancellation
In some situations, your loan may be discharged (canceled). Go to the U.S Department of Education Website for more information on:

Summary of Cancellation/Discharge Provisions:


Federal Stafford Loans
  • Borrower's Total and Permanent Disability.
  • Full-time teacher for five consecutive years in a designated elementary or secondary school serving students from low-income families, if the Stafford loan is disbursed after October 1, 1998.
  • Closure of the school (before student could complete program of study) or false loan certification.
  • School does not make required return of loan funds to the lender.

Federal Perkins Loans
  • Full-time teacher in a designated elementary or secondary school serving students from low-income families.
  • Full-time special education teacher (includes teaching children with disabilities in a public or other nonprofit elementary or secondary school).
  • Full-time qualified professional provider of early intervention services for the disabled.
  • Full-time teacher of math, science, foreign languages, bilingual education or other fields designated as teacher shortage areas.
  • Full-time employee of a public or nonprofit child- or family-services agency providing services to high-risk children and their families from low-income communities.
  • Full-time nurse or medical technician.
  • Full-time law enforcement or corrections officer.
  • Full-time staff member in the education component of a Head Start Program.
  • Vista or Peace Corps volunteer.
  • Service in the U. S. Armed Forces.

go to topDefaulted Student Loans
If you default on your federal student loan, it means that you did not make your monthly payments. Your Stafford loan is considered to be in default if you are 270 days delinquent. Your Perkins loan may be considered to be in default if you fail to make your payment on the date due.


Consequences of Default

If you default on your federal student loan(s), one or more of the following may occur:
  • Damage to your credit rating, which could impact your ability to borrow in the future.
  • Referral of your account to a collection agency.
  • Collection charges may be added to your loan.
  • Garnishment of your wages.
  • Withholding of your state or federal tax refunds.
  • Civil lawsuit, including court costs and legal expenses.
  • Loss of deferment and forbearance options.
  • Loss of eligibility for further financial aid.