Ready to request a Student Loan?

Ready to request a Student Loan?

DELINQUENCY or DEFAULT? Delinquency occurs when you fail to make payments on your student loan as scheduled according to the terms of your master promissory note. Default occurs when you fail to make a payment for 270 days. If you are behind in making payments on any of your federal student loans, take the following steps: ? Contact the agency that is

billing you. ? Explain your situation fully.

Ask them to work with you to re-pay the loan and find out what options are available. ? Always stay in touch with your lender, loan servicer or collection agency.

What are CONSEQUENCES of defaulting on your student loans? ? The loan will be reported as

defaulted to credit bureaus, damaging your credit rating. ? The IRS can take your federal and state tax refund to collect any of your defaulted student loan debt. ? The Federal Government may contact your employer to garnish your wages. ? The loan account is assigned to a collection agency. ? Your student loan debt will increase due to costs associated with the collection process. ? You will lose eligibility for additional federal student aid.

What I need to know BEFORE taking out a loan

Just because you qualify for a loan, does not mean you have to take one out. However, if you need a loan, you need to understand the different types: Subsidized loans are awarded based on need. The federal government subsidizes the interest while you are in school. Unsubsidized loans are non-need based and charge interest from the first time money is disbursed.

What I need to know DURING the loan process

? Fill out the form For classes beginning Fall 2017, complete the 2017-18 Student Loan Request form. Avoid common mistakes by making sure to:

Sign the form with a pen. Do not type signature. Fill in the anticipated graduation date. Provide your best estimation, but do not leave blank. Fill in a dollar amount for "Amount requested". We need to know how much you are requesting. If you are a previous borrower; report your outstanding student loan debt on the form. This information can be found at nslds.. ? Complete a Master Promissory Note (MPN) Sign electronically at . The MPN lists borrowing terms. ? Complete Entrance Counseling First time borrowers need to complete electronically at . ? Loan limitations Your financial aid budget is defined by various costs you will incur. The total financial aid package--to include all types of aid received--must not be more than the cost of attendance. Please note that your financial aid may be reduced based on the financial aid budget.

What I need to do AFTER taking out a loan

Repay your loan--After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. During this period, you will be notified of your first payment due date. Payments are usually due monthly. Avoid default--Loans become delinquent the first day after a payment is missed. Loan servicers report all delinquencies of at least 90 days to the three major credit bureaus. If you have trouble making your payments--contact your servicer. Not sure who your servicer is? Visit nslds. for a financial review of your current student loans.

Questions?

NCMC Financial Aid Office 1301 Main Street Trenton, MO 64683 660.359.3948 ext. 1513 660.359.7856 (fax) financialaid@mail.ncmissouri.edu

ncmissouri.edu

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