Loan Resources

You have certain rights and responsibilities as a borrower.

Your rights:

– Written information on your loan obligations and rights and responsibilities as a borrower.
– A copy of your MPN either before or at the time your loan is disbursed..
– Have a grace period and an explanation of what this means for you.
– Notification, if the Department of Education transfers your loan to another servicer without your consent.
– A disclosure statement before your loans go into repayment. (Include interest rates, fees, balance owe and a loan repayment schedule.)
– Deferment or Forbearance of repayment for certain defied periods, if you qualify for and request it.
– Prepay your loan in whole or part at any time without penalty.
– Request documentation that your loan is paid in full.
– Be informed of and provide consent of any changes in the terms of your loan.

Your responsibilities:

– Complete exit counseling

before you graduate,
leave school (withdrawn) or
drop below half time enrollment (Less than 6 credit hours)

– Repay your loan even if you

do not complete your degree,
dissatisfied with your education
not able to find employment, or
did not receive a payment statement

– Notify your loan servicer with current contact information.
– Make timely monthly payments after your grace period ends unless you are in a deferment or forbearance
– Notify your loan servicer of anything that might alter your eligibility for an existing deferment or forbearance.

If you receive a loan while attending ACC, you must complete exit counseling when you leave ACC, drop below half-time enrollment (6 credits), or graduate. Exit counseling will assist you with understanding your rights and responsibilities that apply to your loan.

Complete exit counseling: https://studentaid.gov/exit-counseling/

Information covered:

Loan Repayment options
Deferment and forbearance options
Cancellation options
Prepayment
Debt management
Loan Consolidation
Consequences of default on loan and service obligation
Loan rehabilitation

Your loan will enter a grace period when you leave ACC (either by withdrawing, dropping below half-time enrollment (6 credits), or graduating). This grace period lasts six months and is granted only once. You must begin repaying your loan immediately after the grace period ends, or you can return to school before the grace period concludes to defer repayment. Your loan servicer will send you information about repayment options. You can choose a repayment plan; typically, you will have 10 to 25 years to repay your loan.

Contact your loan servicer immediately if you encounter problems making a payment. They can explore your options, which include:

Deferment
Forbearance
Restructured payment plan

If your monthly payment does not arrive by the due date, your loan is considered delinquent. You could face additional late fees and have your delinquency reported to various national credit bureaus.

For more information on your loan and loan servicer, please visit: https://studentaid.gov/loan-simulator/.

Failure to make your monthly payments on time can lead to serious financial and legal consequences. A loan is considered to be in default when you miss payments for 270 days. Once your loan defaults, the balance, including principal, interest, and collection fees, becomes immediately due. Defaulted loans are not eligible for deferment or forbearance and can impact your future Title IX funding (financial aid).

The consequences of defaulting on your loan include:

– Your unpaid federal student loan and any interest owed will be immediately due (acceleration).
– Your federal tax refund and other federal benefits may be withheld and used to repay your defaulted loan (Treasury offset).
– Your wages may be garnished, meaning your employer must withhold a portion of your paycheck to repay your defaulted loan.
– You may be denied a professional license in some states.
– You will lose eligibility for federal student aid and assistance programs.
– You will no longer qualify for loan deferments, forbearance, or repayment plans.
– You may incur additional collection fees, attorney’s fees, and other costs related to the collection process.
– The Federal Department of Education will report your default to national credit bureaus, negatively affecting your credit record.

For more information on loan default, please visit: https://studentaid.gov/manage-loans/default.

Forgiveness, cancellation, or discharge of your loan means that you are no longer required to repay some or all of your loan.

The summaries below offer a quick view of the top four types of forgiveness, cancellation, and discharge available for the different types of federal student loans.

1. Public Service Loan Forgiveness (PSLF) – Direct Loan only:
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness (PSLF) Program.

2. Total and Permanent Disability Discharge – Direct and FFEL Program Loans:
If you’re totally and permanently disabled, you may qualify for a discharge of your federal student loans and/or Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligation.

3. Discharge Due to Death – Direct and FFEL Program Loan:
Federal student loans will be discharged due to the death of the borrower or of the student on whose behalf a PLUS loan was taken out.

4. Forgery Loan Discharge – Direct and FFEL Program Loan:
If you believe you were the victim of a fraudulent loan.

For more information on forgiveness, cancellation, or discharge, please visit: https://studentaid.gov/manage-loans/forgiveness-cancellation