Repaying student loans
When you graduate or stop attending Columbia College, it is time to start repaying student loans. But don't worry, it doesn't have to be scary. With a little planning and good debt management, repayment should not be a problem.
Repaying your loan
If you have graduated or stopped attending Columbia College, it is time to start repaying student loans. We’ve provided information and links to resources that will help. If you have additional questions, contact the Columbia College Financial Aid Office.
You are required to start repaying your Federal Direct Loan six months after you graduate, leave school or drop below half-time attendance. Your parents are required to begin repaying PLUS loans 60 days after the loans are fully disbursed, however they may request a deferment.
Information about your federal education loans is available through the StudentAid.gov . Federal loans, including FFEL and Direct Loans, PLUS loans and Perkins Loans, are available through this system. Please note that any private loan will not appear in this database.
If you find yourself unable to manage student loans, contact your lenders to let them know your circumstances. In most cases, mutually beneficial arrangements can be made. Do not simply stop making payments.
Payment relief
In special circumstances, you can postpone paying back your loans through deferment . During deferment periods, interest does not accrue. If you are enrolled at least half-time in a postsecondary school or graduate fellowship, you may qualify for deferment. If you are in a rehabilitation program for disabilities, you may qualify for deferment. If you are unemployed, you may be able to get determent up to three years.
If you don’t qualify for a government-approved deferment, you may request forbearance from your lender. This can delay or reduce your monthly payments. However, you must still pay the interest on your loan during the deferment period.
You may get additional information from the U.S. Department of Education .
Loan forgiveness
If you teach elementary or secondary school, you may be eligible for special deferment options. In some cases, you may be eligible for cancellation of a portion of your student loan debt. The U.S. Department of Education has more information.
Individuals who enter and work full-time in public sector jobs may apply for Public Service Loan Forgiveness .
To discuss deferring or canceling Federal Direct loans, contact your loan servicer for application forms. Contact information is available through StudentAid.gov .
To discuss deferring or canceling a Perkins loan you borrowed at Columbia College, forms are available from University Accounting Service . If you borrowed Perkins loans at another school, contact that school.
It’s possible to have your student loan debt canceled or reduced under certain specific circumstances .
Loan consolidation
Consolidating all of your education loans lets you have one monthly payment. It generally allows you to extend the repayment period beyond 10 years.
Federal consolidation loans:
- Fixed interest rate based on a weighted average of the current rates on your existing loans
- Deferment options are predetermined by federal regulations
- Cannot include private loan funds
Private consolidation loans
- Can include federal and private loan funds, however this is not recommended because federal loans offer lower interest rates
- Usually a variable interest rate based on your credit score
- Forbearance is available only at the lender’s discretion
Please note that any consolidation loan is likely going to significantly increase the total amount of interest that you will be required to pay. If you are meeting your currently monthly repayment obligations, it may be best to avoid consolidation.
You can estimate the amount you can afford to pay, based on your monthly income, using the FinAid Calculator .
Repayment plans
Standard — Payments are fixed and made for up to 10 years
Extended — Lower payments are made for up to 25 years
Graduated — Lower payments gradually increase every two years up to 10 years
Income based — Payments are based on income and family size
Income contingent — Payments are 20 percent of discretionary income or a fixed payment over 12 years adjusted according to income
Income sensitive — (FFEL Loans only) Payments increase or decrease based on annual income
Pay as you earn — Payments are 10 percent of discretionary income but never more than the 10-year Standard Repayment Plan amount
| Repayment plan | $5,000 loan ($) | $20,000 loan ($) | $50,000 loan ($) |
|---|---|---|---|
| Standard | 58 | 230 | 575 |
| Graduated | 33-100 | 133-398 | 332-996 |
| Income-based contingent | 35-50 | 140-202 | 225-572 |
| Standard total | 6,905 | 27,619 | 69,048 |
| Graduated total | 7,430 | 29,720 | 74,300 |
| Income-based contingent total | 8,834 | 35,338 | 114,483 |
| Repayment amount | $5,000 loan ($) | $20,000 loan ($) | $50,000 loan ($) |
|---|---|---|---|
| Monthly payment | 58 | 230 | 575 |
| Total | 6,905 | 27,619 | 69,048 |
| Repayment amount | $5,000 loan ($) | $20,000 loan ($) | $50,000 loan ($) |
|---|---|---|---|
| Monthly payment | 33-100 | 133-398 | 332-996 |
| Total | 7,430 | 29,720 | 74, 300 |
| Repayment amount | $5,000 loan ($) | $20,000 loan ($) | $50,000 loan ($) |
|---|---|---|---|
| Monthly payment | 35-50 | 140-202 | 225-572 |
| Total | 8,834 | 35,338 | 114,483 |
Note: Payments are calculated using the interest rate of 6.8 percent for student borrowers with an estimated Adjusted Gross Income of $25,000 and a family size of 1.
Defaulting on student loans
If you fail to repay your loan, you will be in default and your credit rating will be damaged. This may impact your ability to borrow money for a home, vehicle or additional education. Your wages may be garnished, and your federal and state income taxes may be withheld. Your loan could be sent to a collection agency, and you would be liable for collection fees.
Student loan borrowers in default do have options to repay their loans. Learn more from the U.S. Department of Education .
If you have a dispute with your service regarding repayment of federal loans, you may contact the Federal Student Aid Ombudsman .
U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144
(877) 557-2575
Debt management resources
Columbia College has partnered with Inceptia, a student loan counseling agency, to provide students with resources about repayment options. Students may receive calls, letters or emails from Inceptia to discuss student loan repayment and possible options. Options may include alternative repayment plans, deferment, consolidation, discharge, forgiveness or forbearance.
Personal finance
- Education tax benefits (see IRS Publication 970)
- Consumer credit counseling