Preparing for Student Loan Repayment
Students who are leaving Purdue as a result of obtaining or not obtaining a degree may find the following information helpful in preparing for repayment of student loans.
Q:What is the difference between a lender and servicer?
A: The lender provides the money for the loan.
A loan servicer is a company that handles the billing and other services on your federal student loan. The loan servicer will work with you on repayment plans
and loan consolidation
and will assist you with other tasks related to your federal student loan. It is important to maintain contact with your loan servicer. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.
Q:Who do I repay?
A: Your lender or a loan servicer is responsible for billing and receipt of payments. Many times a lender will hire a company to perform the billing functions for its loans, and this company is referred to as a loan servicer. You can contact your lender or loan servicer for information.
Q:How do I know who my servicer is?
A: Your loan is assigned to a loan servicer by the U.S. Department of Education after the entire loan amount is disbursed. The loan has been disbursed when your school transfers your loan money to your school account, gives money to you directly, or a combination of both. Your loan is usually disbursed in at least two payments provided it is an academic year loan. It would be in one payment if you are borrowing for one semester.
The servicer(s) assigned to any federal loans you borrowed will be listed on the National Student Loan Data System (NSLDS)
Q: When do I start repayment?
A: You may be entitled to one 6-month grace period after you stop attending a school at least half time; however, there are variable grace periods depending on your individual situation - check with your servicer for more information. During this grace period, the lender or loan servicer will contact you and tell you how much your payments will be and how to make them. If you go back to school, you can obtain a deferment so you can temporarily postpone payments
Q: How do I know how much I've borrowed and have to repay?
Q:Do I have to complete exit counseling if I am starting another program/degree in the semester following graduation, also at Purdue?
A: Yes. You will need to complete Exit Counseling at this time and then, if needed, process an in-school deferment (if you want to postpone repayment of your loans) once you are registered as a graduate student or have been enrolled for another program.
Q: Which loan am I required to complete exit counseling for?
A: If you had a Subsidized, Unsubsidized or Graduate PLUS loan, you have 30 days after graduation to complete this federal requirement. You are also required to complete exit counseling for any Perkins or Purdue loans. These two loans are serviced by ECSI, a third party servicer specifically for loans awarded to Purdue students.
Q: Can Purdue answer my loan questions after I graduate?
A: We can help you with general questions, but the best source for you to contact is your loan servicer.
Q: Where can I obtain a copy of all of the loans I borrowed?
A: Federal loans you may have borrowed while in school will be listed at NSLDS. Any parent PLUS loans and Perkins loans will also be listed. Purdue loans and private loans will not be listed on this website.
Q: Where and when will I receive information about due payments?
A: Your loan servicer or lendermust provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment. Keep in mind that your loan may have a grace period. You will receive this information sometime after you graduate. If you have graduated and have not received information from your servicer within a few months, you should contact your servicer to make sure they have your current information such as email and mailing address.
Q: What if I disagree with the total amount that I owe or loans that I've borrowed?
Q: What type of assistance is available once I start repayment?
A: Your lender or loan services can answer almost all loan repayment questions.