You need to be prepared to repay your student loans when you either complete your degree or no longer enroll at least half time in an accredited program. Use the information below to make informed decisions on managing your loan payments and maintaining good financial and legal standing.
Loan servicer information
Please contact Studentaid.gov to obtain your student loan servicer information.
Have a grace period.
Prepay your loan without penalty.
Request a copy of your master promissory note.
Request documentation that your loan is paid in full.
Choose a repayment plan.
Be informed of your repayment date.
Be informed of and provide consent of any changes in the terms of your loan.
Complete exit counseling.
Repay your loan.
Notify your lender with current contact information.
Make timely monthly payments.
Notify your lender of your eligibility of a deferment or cancellation of loan and/or payments.
You use proceeds of loans for education-related purposes.
Make a payment even if you do not receive a payment statement.
Loan repayment plan
Deferment and forbearance options
Consequences of default on loan and service obligation
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 Studentaid.gov.
Consequences of defaulting include the following:
The U.S. Department of Education (ED) requires you to repay immediately the entire unpaid amount of your loan.
The DOE sues you, takes all or part of your federal and state tax refunds and other federal or state payments, and/or garnishes your wages so your employer is required to send part of your salary to pay off your loan.
The DOE requires you to pay reasonable collection fees and costs, plus court costs and attorney fees.
You are denied a professional license.
You lose eligibility for other federal student aid and assistance under most federal benefit programs.
You lose eligibility for loan deferments.
The DOE reports your default to national credit rating bureaus.
For more information on default, please visit https://studentaid.gov/manage-loans/default.
Pay the loan in full – This is the fastest way to resolve your defaulted loan status.
Rehabilitation – Make nine voluntary, consecutive monthly payments on time. During rehabilitation, you can regain eligibility for financial aid after making six voluntary, consecutive monthly payments on time.
Consolidation – Combine all your federal education loans into a single account and get an extension on the repayment periods, allowing for lower monthly payments. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period. Consolidating is an option as long as the loans are currently in a grace period or repayment status.
The summaries below offer a quick view of the top three types of forgiveness, cancellation, and discharge available for the different types of federal student loans.
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.
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.
Discharge Due to Death – Direct and FFEL Program Loan
Federal student loans will be discharged due to the death of the borrower or the of the student on whose behalf a PLUS loan was taken out.
If you not sure where to begin on your budget, see student money management resources.
Private loans are not federal loans but are considered part of a student’s financial aid award. Based on the borrower’s credit, these funds are typically loaned to you by a bank or other non-educational organization. Private loans usually do not have the same benefits as Federal student loans. We encourage our students to start with Federal Direct Loans before using a private loan.
Private loan disclosures required by the Truth in Lending Act can be found under Section 128 (e) of the Truth in Lending Act 15 U.S.C 1638(e).
Students will need to research these private loan options on their own due to restrictions placed on ACC by federal regulations. ACC does not maintain a preferred lender arrangement.
For a private loan to be certified and processed at ACC:
- Complete the financial lender’s loan application and promissory note.
- Complete ACC’s financial aid application steps.
- Register for at least 6 credits from an approved degree plan during the semester (half-time status).
- Maintain academic standards of progress (SAP) for financial aid students.
- Not be in default on any federal student loan or owe a federal grant repayment.
ACC will certify private loan amounts up to the cost of attendance minus all federal aid, whether you accept all federal aid or not.
Please be advised that the State of Texas does offer other loan funding to Texas residents.Back to Top