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Frequently Asked Questions - FFEL Loan Repayment



Questions
Recently, I received exit interview information. Why am I receiving it?
If I have a question about the information provided on the exit interview form, whom do I contact?
Once I've completed the exit interview form, to where do I return it?
I am currently a junior in college and enrolled this semester full time. I am receiving notices from my lender to start repayment. What should I do?
I recently moved out on my own but am having trouble paying my monthly loan payments. Is there any way I can lower the payment?
If I need to drop out of school for a year, what happens to my student loans? Will I need to start making payments?
If, during my six month grace period and before my first payment becomes due, I still have questions about the repayment process or my options, whom should I contact?
If I choose one repayment option and start making payments and then decide to change to another available option, can my lender or loan servicer deny my request?
I previously borrowed Stafford Loans that were guaranteed by a FFEL guarantor (not HESC) and then obtained a subsequent loan in NYS through HESC. Can I now consolidate all of my loans with a single guaranty agency?
I have loans with several different lenders. How do I determine which lender should consolidate my loans?
I am having difficulty making my monthly student loan payment, including payments on my other consumer debts such as credit cards and alternative student loans. What should I do?

Recently, I received exit interview information. Why am I receiving it?

You are receiving this material because, according to your school records, you are scheduled to either graduate or change schools, or you have withdrawn from school.
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If I have a question about the information provided on the exit interview form, whom do I contact?

If you have a question about your loan balance, you should contact your lender for verification. If you have a question about your enrollment status or the dates you left school, you should contact your school.
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Once I've completed the exit interview form, to where do I return it?

The exit interview form should be completed and returned to the school.
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I am currently a junior in college and enrolled this semester full time. I am receiving notices from my lender to start repayment. What should I do?

Contact your lender or loan servicer immediately to inform them of your in-school status. Also ask what information they need in order to verify this. Your lender will either send you a form or ask for documentation from your school.
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I recently moved out on my own but am having trouble paying my monthly loan payments. Is there any way I can lower the payment?

Yes, there are ways to lower your monthly payment. Your lender will provide information on options available to you such as a graduated payment, income sensitive or extended repayment plans. For example, under a graduated repayment plan, your payments will be lower at first and then increase over time. Each payment must be at least equal to the interest which accrues on the loan. Another option would be forbearance. Forbearance is a temporary break in either making loan payments or reducing the amount of the payment you were previously scheduled to make. A new option called Income Based Repayment (IBR), allows you to make payments based on your income. More information on IBR can be found at http://www.ibrinfo.org/what.vp.html . HESC's Borrower Center has information on alternative repayment plans and links to other information regarding deferment and forbearance Payment Problems and Defaulted Loan Center.
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If I need to drop out of school for a year, what happens to my student loans? Will I need to start making payments?

Your loans become due six months from the date of your actual withdrawal. However, you can talk to your school about a leave of absence or talk to your lender about available deferments or forbearance.
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If, during my six month grace period and before my first payment becomes due, I still have questions about the repayment process or my options, whom should I contact?

Contact your lender or loan servicer at anytime during your grace period to be better informed on the terms of your student loans, as well as available repayment options you may be entitled to. If you are unsure of how to contact your lender or loan servicer, please visit the Loan Repayment Center for access to your loan information.
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If I choose one repayment option and start making payments and then decide to change to another available option, can my lender or loan servicer deny my request?

A lender must comply with an eligible borrower's request to revise his or her choice of repayment schedule at least once every 12 months.
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I previously borrowed Stafford Loans that were guaranteed by a FFEL guarantor (not HESC) and then obtained a subsequent loan in NYS through HESC. Can I now consolidate all of my loans with a single guaranty agency?

Yes. Borrowers who have loans through multiple guaranty agencies may request the transfer of their loans to secure a single guarantor.
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I have loans with several different lenders. How do I determine which lender should consolidate my loans?

If you have: 1) All FFEL Loans – contact any FFEL lender that offers consolidation loans. (If you are unable to obtain an income-sensitive repayment plan, you may apply for a Federal Direct Consolidation Loan ); 2) FFEL and Direct Loans – you have the choice of contacting any FFEL lender that offers consolidation loans or applying for a Federal Direct Consolidation Loan ; or 3) All Direct Loans – apply for a Federal Direct Consolidation Loan.
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I am having difficulty making my monthly student loan payment, including payments on my other consumer debts such as credit cards and alternative student loans. What should I do?

Contact the Delinquency Resolution Team at 1-800-888-0741 or defaultprevention@hesc.ny.gov. We will discuss your situation and can refer you to your lender or nearest not-for-profit, NYS licensed credit and debt counseling agency. These agencies can organize your debts, help you with a spending plan, and work with you to arrange a repayment plan you can afford.
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