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Repayment of Stafford Loans
- Repayment begins six months after the student graduates or is
enrolled less than half time. The repayment amount will vary based upon the
total amount borrowed. The minimum amount will be $50 a month. The borrower
has a maximum of 10 years in which to repay the loan(s).
- The borrower may prepay all or part of any loan(s) without penalty.
Prepayment gets the borrower out of debt faster and results in lower total
interest costs.
- Review the terms of repayment for Federal Stafford loans. Give
students an individual summary outlining their total debt in each program, and
the name, address and telephone number of the lender and servicer of their
loans.
- Inform the students that lenders are required to notify them of the date
on which their loan-repayment period begins.
- Provide students with a sample repayment chart to enable them to plan for
future living expenses and their loan payments.
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