Now That You've Graduated

Congratulations! You completed your degree and are ready for the next steps. It is now time to organize your financial paperwork and plan for your future. If you have student loans, you should be aware of repayment, consolidation, and deferment options that are available.

The most important message upon leaving school and entering repayment is to avoid default at all costs! Defaulting on a student loan has serious consequences that include a damaged credit rating affecting your ability to qualify for many personal loans. Not to mention, you cannot receive any federal student loans with an active default status. Therefore contact your lender as soon as you have difficulty repaying your loans and be aware; student loans are not discharged in bankruptcy court.

The following are helpful tips when it comes to leaving school and entering the repayment period of your loans. We want you to be informed and make good decisions about your loan debt and if you have any questions, don’t hesitate to call our office.

Gather Information on Your Loans 

1.Shortly before you graduate you should receive an email from our office about how to complete Federal Direct, Stafford, and PLUS Loan exit counseling. You will review basic terms of the loan and read about your rights and responsibilities as a borrower. Click here to get started.

2.For Perkins, Health Professions, Nursing, and Institutional Loan borrowers; you will receive instructions from the Student Loan section of the Bursar's Office about exit counseling for these loans. Exit counseling for these loans is a requirement.

3. Know what you owe. The National Student Loan Data System (NSLDS) contains historical data on your federal student loans; Perkins, Stafford , and PLUS. Use your four-digit FAFSA PIN number to login and review your debt. Private, institutional ans health profession loans are not tracked on this federal loan system.

4. Did you borrow private student loans while at UW-Madison? If so, most private loans for UW Madison students are serviced by Great Lakes Higher Education Corp (GLHEC). They can provide you with your private loan amounts and terms of the loans. Contact their repayment department at 1-800-236-4300. You can monitor your private loan records by creating an account on their website at www.mygreatlakes.org.

Deferment Information 
5. If you borrowed Stafford and/or PLUS loans through UW-Madison prior to 2010-2011, contact Great Lakes Higher Education Corporation (GLHEC) to discuss deferment options. If you borrowed Direct Subsidized, Unsubsidized, or PLUS loans during the academic year of 2010-2011, go to www.studentloans.gov for deferment and/or forbearance information.

Keep all correspondence from your lender(s) or from GLHEC regarding your loans. Some of your loans could have been sold to other lenders so you may need to submit a deferment to multiple holders.

    6. If you are deployed for active duty, you may qualify for Military Deferments. Contact the holder of your loan for availability and applications.

    Repayment Plans 

    7. Did you know there are repayment plan options for Stafford and PLUS loans? Contact your loan holder for more information.

    • Standard: payments are the same each month. Up to 10 years to repay.
    • Graduated: payments start lower and gradually increase. Higher total repayment than standard plan. Up to 10 years to repay.
    • Income-Sensitive: payments adjusted to your annual income. Payment cannot be less than interest due.
    • Income-based: payments adjusted annually to your income and poverty level. Payment can be less than interest due.
    • Extended: available to those with more than $30,000 in Stafford or PLUS loans. Payments can be fixed or graduated. Up to 25 years to repay.

    8. Income Based Repayment (IBR) is a new repayment program for high debt and low-income borrowers.

    9. Would you like to see a Sample Repayment Chart?

    10. There are several loan calculators on www.finaid.org that can help you estimate your monthly payments based on the repayment plans in #7 above.

    Consolidation 

    11. Should I consolidate my loans? Click here for information to determine if consolidation is right for you.

    Loan Forgiveness 

    12. Loan forgiveness for public service employees is available through Direct Loans (DL) and you must consolidate your Stafford Loans with the Direct Loan Program to be eligible.

    13. Full-time teachers of elementary and secondary low-income schools who meet certain criteria may be eligible for Stafford loan forgiveness and/or Perkins loan cancellation.

    Tax Credits 

    14. You can deduct your student loan interest on your federal income tax return! Go to www.irs.gov and search for publication 970.

    Difficult Financial Circumstances 

    15. Having difficulty repaying your loans? The Department of Education has suggestions and options during difficult financial circumstances. Click here for more information.

    16. The Federal Student Aid Ombudsman of the Department of Education helps resolve disputes and solves other problems with student loans. When you believe you have done all you can do to reach a solution, contact the Ombudsman.

    Credit Report 

    17. Become familiar with your credit report, and the state of your credit in general. Download a free credit report each year at www.annualcreditreport.com.Your private and federal student loan payment history is recorded on your credit report just like any other bill you pay.