Repayment

Strategies

To help manage student loan debts and successfully repay loans, the student borrower should:

• Know and stay in touch with the lender, financial aid office, or the Illinois Student Assistance Commission (ISAC). Don't hesitate to ask questions.
• Open and read any mail received regarding the student loan.
• Keep accurate records.
• Stay current with the payments.
• Write loan account number on all correspondence with the lender and on checks.

Unable to Make Payments

If the borrower is unable to make monthly payments, the borrower should contact the lender immediately to avoid default by considering alternative repayment options. Additionally, depending upon circumstances, the borrower may qualify for loan deferment, forbearance, or forgiveness.

Repayment Incentives

Many lenders and holders offer repayment incentives for borrowers with a record of consecutive on-time payments. These incentives may include interest rate reductions or cash back. Check with the lender or holder to see if these options may be available.

The borrower should be aware of who holds each of the student loans and ensure the total amount of those loans do not exceed the Federal Stafford loan aggregate maximums.

Locating A Student Loan

Although being aware and informed about loans is very important, the borrower may not know what lender or agency is the holder of the loan or is handling the account.

If the borrower does not know who guaranteed the loan, visit the LoanLocator Web site. This site will tell the borrower who currently holds the loan and provides a history of which lenders previously held the loan.

Another place to access loan information is through the National Student Loan Data System (NSLDS). With their social security number and a Department of Education Personal Identification Number (PIN), students can locate their student loan history.

Students may also call the U.S. Department of Education for loan information inquiries at 800-433-3243.