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. Below are a couple financial literacy focused websites with great tips and tools to help get you started!
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 and download the Direct Loan Entrance Counseling Guide.
Debt and Borrowing Money
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 through https://studentaid.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://studentaid.gov/fsa-id/sign-in/landing.
- 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. 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 studentaid.gov using their U.S. Department of Education Federal Student Aid ID to complete the Exit Counseling Session.
Budgeting, Saving and Money Basics
Student Loan Repayment
There are various types of repayment plans available to borrowers. Students can choose the repayment plan that best works for their financial situation. We are here to support you in managing your student loans and to connect you with your assigned federal loan servicer.
Where to start? 4 key points to keep in mind when preparing for student loan repayment.
Are you a recent Post University graduate, or no longer attending the University? With the US Supreme Court ruling against student debt cancellation, please review these important 4-points if you have a federal student loan:
- Interest will start accruing again on September 1st, and you will have to resume monthly payments on your student loan balance starting in October.
- Don’t wait, connect with your Loan Servicer and update your contact information. They will assist you with everything related to your student loan repayment.
- Talk to you loan servicer about the new SAVE repayment plan. The SAVE Plan provides the lowest monthly payments available to nearly all student borrowers.
- Want to become more informed now? Review the Great Advice for Repayment guide. It’s a concise guide of what to expect and how to prepare.
Loan Repayment FAQ’s
When is my first payment due?
- Your first payment will be due in October 2023. You’ll get your bill in September or October—at least 21 days before your payment due date—with your payment amount and due date.
What is my monthly payment amount going to be?
- Your bill arriving in September or October will contain your payment amount.
- You’ll be able to view your account on your loan servicer’s website to see the payment amount once your first bill has been sent. Make sure you know which loan servicer is yours.
- You can also get an estimate of your payment amount and compare repayment plans by using Loan Simulator.
What if I can’t afford my payment?
- Be sure to use Studentaid.gov to explore repayment plan options—including income-driven repayment plans, which could significantly lower your monthly payments.
What if I have a loan in default?
- Most borrowers in default can use the Fresh Start initiative to easily get their loans back in good standing.
- It’s free and takes 10 minutes or less to sign up and enroll in an affordable repayment plan with payments as low as $0 a month.
12-month On-Ramp for borrowers:
For borrowers who still cannot make their payments, the U.S. Department of Education is creating a temporary “on-ramp” for next 12-months starting in October. During that time, missed, partial, or late payments will not lead to negative credit reporting, default, or loans being sent to collection agencies.
If you can make payments, you should do so, as payments will be due, and interest will accrue during this on-ramp period. Additionally, missed payments will not count toward loan forgiveness under any of the income-driven repayment plans or Public Service Loan Forgiveness.
The New SAVE Repayment Plan and How to Apply
The new SAVE repayment plan offers the lowest monthly payments available.
The Saving on a Valuable Education (SAVE) Plan replaces the existing Revised Pay As You Earn (REPAYE) Plan. If you’re currently on the REPAYE Plan you will automatically get the benefits of the new SAVE Plan.
The SAVE Plan calculates your monthly payment amount based on your income and family size and can provide the lowest monthly payments of any IDR plan available to nearly all student borrowers.
Additional benefits of the SAVE plan include:
- SAVE can decrease your monthly payment amount compared to all other income-driven repayment plans.
- It eliminates 100% of remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made under the SAVE Plan.
- The SAVE Plan excludes spousal income for borrowers who are married and file separately.
- If you apply for an IDR plan (such as the SAVE Plan) this summer, your application will be processed in time for your first payment due date. It may take your servicer a few weeks to process your request, because they will need to obtain documentation of your income and family size.
How to Apply:
A beta version of the updated IDR application is now available and includes the option to enroll in the new SAVE Plan.
The Dept. of Education is accepting applications now. If you submit an IDR application, it will be processed and will not need to be resubmitted. The application may be available on and off during this beta testing period. If the application is not available, try again later. You will receive an email confirmation after you have applied.
If you had already enrolled in the REPAYE Plan or recently applied, you will automatically be put on the SAVE Plan. There is no need to reapply or request to change your plan. Learn how to check which plan you’re on.
What are the SAVE Plan benefits going into effect next year?
The SAVE Plan includes additional benefits that will go into effect in July 2024. These additional benefits are likely to reduce payments further and make it easier to manage repayment. The benefits include the following:
- Payments on undergraduate loans will be cut in half (reduced from 10% to 5% of income above 225% of the poverty line).
- Borrowers with original principal balances of $12,000 or less will receive forgiveness of any remaining balance after making 10 years of payments, with the maximum repayment period before forgiveness rising by one year for every additional $1,000 borrowed.
- Borrowers who consolidate will not lose progress toward forgiveness.
- Borrowers will automatically receive credit toward forgiveness for certain periods of deferment and forbearance.
- Borrowers will be given the option to make additional “catch-up” payments to get credit for all other periods of deferment or forbearance.
- Borrowers who are 75 days late will be automatically enrolled in IDR if they have agreed to allow the Department of Education to securely access their tax information.
Other 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 change once a year. Under the Federal Direct Student Loan Program, repayment plans may change at any time if 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 when students may be having trouble 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) forbearance allows 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.gov.
The ED allows borrowers to consolidate (combine) multiple federal student loans into one loan. Consolidation 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.gov/manage-loans/consolidation.
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 Federal Student Aid to learn about eligibility and requirements to apply for federal aid.