Financial Literacy & Responsible Borrowing
Financial literacy is the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being. Students must use this knowledge to make good decisions related to budgeting, borrowing and repayment strategies. Stay informed for the best ways to utilize financial aid without unnecessarily overburdening yourself with student loan debt.
Students are responsible for repaying their student loans, so it’s important to only borrow what is needed to cover educational costs as opposed to borrowing the maximum one is eligible to receive. It is recommended students exhaust other types of aid before considering alternative loans, which may carry a higher interest rate and less-flexible repayment options than federal loans. Be a responsible borrower:
Default Prevention and Management
Post University Financial Literacy and Repayment Advising is dedicated to assisting students throughout the repayment process of their Federal Student Loans. This service is provided so that students have a resource available to answer any questions or concerns about student loan repayment. Regardless of the status of students’ loans or time during which students attended Post University, this resource can always be utilized. Borrowers who default on student loans face serious consequences. Federal Stafford Loans are considered in default after 270 days of delinquency. Defaulted loans are reported to national credit bureaus and can negatively impact borrowers’ credit ratings.
Post University has partnered with Inceptia, a division of the National Student Loan Program, to provide free assistance with federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s customer representatives contact students about loan repayment options if they fall behind on payments and become delinquent. Inceptia is not a collection agency. Inceptia offers alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. They will stay in touch via phone calls, letters and/or emails to help students find answers to questions and solutions to issues. For additional resources, including information on repayment options, please visit Inceptia’s Federal Student Loan Overview at https://www.heroknowl.org/.
The Department of Education’s Guarantors and Loan Servicers engage in several methods of outreach to prevent borrowers from defaulting. In order to ensure that students are receiving the most current communications and notifications, it is recommended that students keep contact information updated with Post University as well as with their Loan Servicers. Students can also sign up for account access on their Loan Servicers’ website(s).
It is important for students to maintain relationships with their federal loan servicers to remain informed about their loan status. Ultimately, it is the students’ responsibilities to track their amounts of money that have been borrowed at all institutions to understand the total that is expected to be repaid when entering the repayment period. Students can access their financial aid history at https://nslds.ed.gov/ by logging in with their FSA ID.
Exit Counseling Policy
If students withdraw, drop below half-time, or graduate (even if planning to transfer to another school) regulations require they complete exit counseling regarding theirFederal Stafford Direct loans.Exit counseling reviews the terms and conditions that apply to students’ federal loans, how to understand and repay loans, how to avoid default, and how to prioritize finances. Post University will inform all recipients of federal student aid to complete exit counseling through their provided personal email address. They will receive this reminder within 30 days of the determined date that they stopped attending the Post University or dropped below half-time enrollment.Students will need the following information in order to complete exit counseling:
- Their FSA ID.
- Outstanding balance information on their federal student loans can be found at https://nslds.ed.gov/npas/index.htm.
- Students need the names, addresses, email addresses and phone numbers for their next of kin, two references who live in the United States, and the name of their employer of future employer (if known).:
During the exit counseling, an explanation of the students’ rights and responsibilities as a direct loan borrower are explained. Students will be provided with contact information for their assigned loan servicers. Additional financial information and terms for the following will also be provided:
- Avoiding delinquency and default.
- Loan repayment by plan and amount.
- Deferment and forbearance (postponement options).
- Loan consolidation.
- Payment of interest and capitalization.
- Money management.
- Conditions for canceling or forgiveness on part or all your loan.
The Department of Education provides a full Exit Loan Counseling guide: For direct loan borrowers. This guide gives a general overview of the information students need for successful repayment of their federal student loans. The students’ Master Promissory Notes or Borrower’s Rights and Responsibilities Statement provide additional information.Students will need to sign into studentloans.gov using theirU.S. Department of Education Federal Student Aid ID to complete the Exit Counseling Session.
Repayment Plan Options
There are various types of repayment plans available to borrowers. Once students leave school, they can choose the repayment plan that best works with their financial situation. For more information on payment options, visit the following link: https://studentaid.ed.gov/sa/repay-loans/understand/plans.
Forms of Payment Relief
- Changing Payment Plans
Different payment plans may be necessary to accommodate borrowers’ financial situations. Under the Federal Family Education Loan Program, repayment plans may be changed once a year. Under the Federal Direct Student Loan Program, repayment plans may be changed at any time as long as the maximum repayment periods under the new plans are longer than the time the loans have already been in repayment.
- Deferment or Forbearance
Federal loan servicers also offer Deferment or Forbearance options for situations where students may be experiencing difficulty making payments. If borrowers meet certain requirements, deferments allow the borrower to temporarily suspend payments on loans. If borrowers do not meet the eligibility requirements for deferments but are temporarily unable to make loan payments, then (in limited circumstances) forbearances allow the borrower to temporarily stop making payments on their loans, temporarily make smaller payment, or extend the time for making payments. Students are responsible for applying for these options with their loan servicers, and must continue making payments until receiving notification that the request has been granted. For more details visit the loan servicers’ websites or the Federal Student Aid website at https://studentaid.ed.gov/sa/repay-loans/deferment-forbearance.
- Loan Consolidation
The Department of Education allows a borrower to consolidate (combine) multiple federal student loans into one loan. Consolidation generally extends the repayment period, resulting in a lower monthly payment which may make repaying the loans easier. The interest rate for consolidation is fixed for the life of the loan, and there is flexibility to repay the loan in full or in part, without penalty, at any time during the life of the loan. Borrowers can find out more information about consolidation by visiting https://studentaid.ed.gov/sa/repay-loans/consolidation.
Return of Title IV Funds
Title IV funds are awarded to students under the assumption that students will complete the periods for which the Federal Student Aid is awarded. When students receiving Title IV Federal Student Aid are considered withdrawn for Title IV purposes, reviews of eligibility are conducted to determine earned and unearned portions of Title IV aid.Students are considered withdrawn if they are administratively withdrawn, academically dismissed, judicially dismissed, or officially withdrawn.
For Federal Student Aid purposes, students will be considered withdrawn from payment periods if the students do not complete all of the scheduled days. This includes those who fail to earn grades or withdraw from all courses and do not confirm future enrollment.
If students withdraw or are dismissed, or otherwise o not complete the payment period, Federal Return to Title IV Funds calculations (R2T4) are processed as required by U.S. Department of Education. The Return to Title IV Funds calculations determine the amount of Title IV aid students have earned. The returns are calculated on a prorated basis from the students’ last dates of attendance. Depending on the outcome of the calculation, Post University will return students’Title IV financial funding if the withdrawal(s)occurs before the students complete 60% of the payment period. The formula is a calculation of the number of days attended divided by the number of total days in the payment period. The resulting percentage is used to determine aid earned.
If students earnless than the amount disbursed, Post University is required to return a portion of those funds to the Department of Education. The funds are returned in the following order:
- Unsubsidized Direct Stafford loans.
- Subsidized Direct Stafford loans.
- Direct PLUS loans.
- Federal Pell Grants.
- Federal Supplemental Educational Opportunity Grants (FSEOG).
If students are eligible for undisbursed Title IV funds, also known as post-withdrawal disbursements, notifications will be sent to the students. Without obtaining students’ permissions, Title IV grant funds from post-withdrawal disbursements will be credited to students’ accounts to pay for tuition, fees, and room and board, or disbursed directly to students, unless Title IV Grant Funds are declined within 14 days of notification. If post-withdrawal disbursements include loan funds, students’ acceptances to release all or a portion of the loan amounts must be received within 14 days of notification. Students may also authorizePost University to apply the funds to any prior outstanding balances that are greater than $200. In order for the students to receive post-withdrawal disbursements, all eligibility requirements must have been met. Any excess funds remaining after a return of Title IV funds or post-withdrawal disbursement will be refunded to the students
Making smart financial decisions when it comes to attending college will make for a less stressful process. To learn more about how Post University can make education more affordable and more valuable, visit apply for financial aid to learn about eligibility and requirements to receive federal aid.