Students preparing for graduation should also prepare to begin repayment on their loans. The first step is to review the student copies of the loan applications and promissory notes to ascertain the beginning payment dates and amounts. Most loans are scheduled for a 10 year repayment period.
The student is responsible for notifying lenders of their current address. Failure to do could lead to confusion and even default. The burden is on the borrower to notify the lender of any changes in your name, address or ability to repay. Keep contact during the grace period.
For students who have not begun working or are pursuing a residency and find the beginning monthly repayment amount too high, you can utilize the different repayment options such as an extended (25 years), consolidation (30 years) or an income based repayment plan. Most loan servicers are interested and willing to work out different payment schedules with borrowers, but can only do so if they know the your circumstances. As always, the Financial Aid office is available to provide guidance to its students and alumni.
Federal Stafford Loan
Understand your Stafford Loan Repayment Plan options including standard, extended and graduated repayment plans, Income-Based Repayment (IBR), Income-Contingent Repayment (ICR), and Stafford Loan Consolidation.
Please note: Certain Stafford Loan repayment options vary depending on whether you borrowed your Stafford Loan through the Federal Direct Loan program or through the Federal Family Education Loan (FFEL) program. Since 1994 Federal Stafford Loans offered at Boston University have been Federal Direct Loans. You may, however, owe on a FFEL Stafford Loan if you borrowed for enrollment at another college or university and they participated in the FFEL program.
Find your Stafford Loan Servicer at the National Student Loan Data System and contact your servicer help with repayment questions.