Guidelines for Repayment of Student Loans

Helpful Information from the Office of Financial Aid

3 Types of Loans: 
Federal Stafford (FFELP & Direct) – Subsidized and Unsubsidized
Federal Perkins
Private Loans – ie: CitiAssist, Discover Student loan, Chase Select, Sallie Mae Smart Option loan, PNC Solution, Gate, etc.

Repayment begins:
Stafford Loans – after 6 month grace period
Perkins Loans – after 9 month grace period
Private Loans – after 6 month grace period
Grace period begins after last day of full-time attendance or if a student drops below half-time attendance, defined as 6 credits at Allegheny College. Grace period may be affected if a student took a leave of absence.
Stafford – Monthly (minimum $50) – paid to servicing agency
(see other side for servicing agencies)
Perkins – Monthly (minimum $40) – paid to ECSI or Allegheny College’s Financial Services Office

Student Responsibilities:

  • NOTIFY your loan servicer of all changes:  address, name, school, disability, unemployment, etc.
  • Make payments ON TIME
  • File for deferments PRIOR to due date
  • PAY all costs incurred in collection of delinquent (past due) loans
  • It is YOUR responsibility to request deferment, forbearance or cancellation from your servicing agency and file papers as needed in a timely manner.

Student Rights:

  • Pay off or pay ahead at any time
  • Consolidate your loans
  • Contact FSA Ombudsman (works with federal student loan borrowers to resolve loan disputes)
  • Rehabilitate your loan (once)

Federal loans may be consolidated, BUT you may lose your deferment rights AND pay more interest – so be sure to get all the facts from your lender before choosing this option.

Lender Responsibilities: 
Report status of loan to National Credit Bureau
Perform Due Diligence on loan (notices at appropriate intervals, etc.)