If you receive a loan, you are responsible for paying it
back on time regardless of your status. In other words,
you will be responsible for paying back any loan you accept,
even if you or the student does not graduate or have a job.
The start date and length of repayment varies by loan type,
Stafford
Loans
Repayment is made to the loan holder and begins after a
six-month grace period, which starts after the student graduates,
leaves school, or enrollment drops below half-time. The
Federal Government covers interest on a Subsidized Stafford
Loan during the grace period, but an Unsubsidized Stafford
Loan accrues interest during this time.
Generally,
the borrower is allowed a minimum of five years and no more
than10 years from the date the first payment is due to repay
the debt. However, a borrower may apply for a graduated
or income-based repayment schedule if needed. There is no
penalty for early repayment. Additional resources such as
a deferment or forbearance may be granted if you are having
repayment difficulties.
At OSLA
our goal is to help all those who need assistance in financing
their education do so responsibly. We offer the OSLA's Exceptional
Borrower Benefits program that can save you money during
repayment. Additionally, our Exceptional Customer Service
Team will assist you in choosing the best repayment plan
option available to you while answering all your questions
in the process.
PLUS
Loans
There is no grace period for PLUS Loans. Interest begins
to accrue after the first disbursement has been made and
payments begin 60 days following the final disbursement.
If you are having difficulties with repayment you may qualify
for a deferment or forbearance, excluding these periods,
a PLUS Loan must be paid off within 10 years. You can save
money with OSLA's Exceptional Borrower Benefits by choosing
an OSLA PLUS Loan.
Perkins
Loans
The school makes this loan. Repayment begins after a nine-month
grace period, which starts after the student graduates,
leaves school, or enrollment drops below half-time and payments
are made to the school.
Consolidation
Loans
These loans are for student borrowers who are carrying a
large education debt with one or more lenders. A Consolidation
Loan cannot be made or granted until the student leaves
or graduates from school. This loan program enables students
(and spouses) to combine their Stafford Loans, Perkins Loans,
Health Professions and Nursing Loans and extend the repayment
period beyond 10 years, but not to exceed 30 years. For details
on obtaining a Consolidation Loan go to OSLA Consolidation
Loans.
