Student Loan Repayment

Student Loan Repayment

Presented by Bill Bufkins

The Master Promissory Note

You signed a Master Promissory Note (MPN) when you first received student loans.

The MPN is a legally-binding agreement where you promised to repay all federal loans you received.

You may have used one MPN for all of the loans you received.

? MPNs can be used for multiple loans with the same lender for up to 10 years.*

*U.S. Department of Education. FAQs--Master Promissory Note. . (Accessed 03/11)

Rights and Responsibilities

Disclosure statement Copy of the Master Promissory Note and actual note when paid in full Repayment schedule Interest rate benefits, if eligible Grace period Prepayment without penalty Notice of loan sale or transfer, if payments are sent to a new location Deferments, when eligible Forbearance requests

Federal Loan Repayment

Six-month grace period for Stafford loans Nine-month grace period for Perkins loans Repayment date Repayment term may be 10-25 years, depending on which plan you

choose* No prepayment penalties; prepaying can reduce length of term Need to make payments on time Know who all of your lenders are Know who your loan servicer is and where payments, change

of address notification and inquiries should be directed

*U.S. Department of Education. Repayment Plans and Calculators. . (Accessed 03/11)

Federal Loan Repayment Options

Standard Repayment: Most repayment plans are standard, unless you arrange for

a different plan 10 years of equal monthly payments Offers the least total interest costs Income-Contingent Repayment: Payments are recalculated annually based on your income, family size and

total amount of Direct Loans Maximum repayment period is 25 years Higher total interest costs in the long run

U.S. Department of Education. Repayment Plans and Calculators. . (Accessed 03/11)

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