Student Loan Repayment

You need to be prepared to repay your student loans when you have completed your degree, or are no longer enrolled at least half time in an accredited program. Use the information below to make informed decisions on managing your loan payments and maintaining good financial and legal standing.

Loan servicer information

Contact the National Student Loan Data System to obtain your student loan servicer information.

Borrower rights & responsibilities

You have certain rights and responsibilities as a borrower.

Your rights:

  • Have a grace period.
  • Prepay your loan without penalty.
  • Request a copy of your master promissory note.
  • Request documentation that your loan is paid in full.
  • Choose a repayment plan.
  • Be informed of your repayment date.
  • Be informed of and provide consent of any changes in the terms of your loan.

Your responsibilities:

  • Complete exit counseling.
  • Repay your loan.
  • Notify your lender with current contact information.
  • Make timely monthly payments.
  • Notify your lender of your eligibility of a deferment or cancellation of loan and/or payments.
  • Uo use proceeds of loans for education-related purposes.
  • Make a payment even if you do not receive a payment statement.

Exit counseling

If you receive a loan while attending ACC, you must complete exit counseling when you leave ACC, drop below half-time enrollment (6 credits), or graduate.

This counseling will assist you with understanding your rights and responsibilities that apply to your loan.

Information covered

  • Loan repayment plan
  • Repayment options
  • Deferment and forbearance options
  • Cancellation options
  • Loan consolidation
  • Loan rehabilitation
  • Debt management
  • Prepayment
  • Consequences of default on loan and service obligation

When loan payments begin

Your loan enters a grace period after you leave ACC, drop below a half-time enrollment (6 credits), or graduate. This one-time grace period lasts six months, and you must begin repaying your loan immediately when your grace period ends.

Your loan servicer will notify you with information about repayment. You can select a repayment plan. Generally, you have 10 to 25 years to repay your loan.

Trouble making payments

Contact your loan servicer immediately if you encounter problems making a payment. They can explore your options, which include:

  • Deferment
  • Forbearance
  • Restructured payment plan
If your monthly payment does not arrive by the due date, your loan is considered delinquent. In this case, you may face additional late fees and have your delinquency reported to various national credit bureaus. 

Loan default consequences & recovery

Failure to maintain monthly payments on schedule can result in serious financial and legal consequences. A loan is considered in default when you fail to make a payment for 270 days.

Once the loan is in default, the entire balance becomes immediately due – principal, interest, and collection fees.

Default loans are not eligible for deferment or forbearance.

Loan forgiveness, cancellation & discharge

Every entity involved in your loan - your school, the financial institution that holds your loan, your loan guarantor, and the federal government - all can take action to recover the money you owe.

Typical actions include:

  • The U.S. Department of Education requires you to repay immediately the entire unpaid amount of your loan.
  • The Department of Education sues you, takes all or part of your federal and state tax refunds and other federal or state payments, and/or garnishes your wages so your employer is required to send part of your salary to pay off your loan.
  • The Department of Education requires you to pay reasonable collection fees and costs, plus court costs and attorney fees.
  • You are denied a professional license.
  • You lose eligibility for other federal student aid and assistance under most federal benefit programs.
  • You lose eligibility for loan deferments.
  • The Department of Education reports your default to national credit rating bureaus.

For more information and to learn what actions to take if you default on your loans see the website for the Department's Default Resolution Group.

Remove loan default

You have three options to remove the default status:

Pay the loan in full

This is the fastest way to resolve your defaulted loan status.

Rehabilitation

Make nine voluntary, consecutive monthly payments on time. During rehabilitation, you can regain eligibility for financial aid after making six voluntary, consecutive monthly payments on time.

Consolidation

Combine all your federal education loans into a single account and get an extension on the repayment periods, allowing for lower monthly payments. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period. Consolidating is an option as long as the loans are currently in a grace period or repayment status.

Additional resources

Please use these resources to find out more information on your student loan.

If you're not sure where to begin on your budget, use the following calculator. Smart Spending Budget Calculator