AFTER GRADUATION

It is required that at the time of termination with SCNM, you must comply with Federal Regulations and complete an online Exit Exam.

Direct Stafford Exit Exam

Grad Plus Exit Exam

Repaying Student Loans

There is always a solution

Before your loan enters repayment you have the option of selecting one of the following repayment plans:

Standard Repayment Plan:  Each monthly payment is the same amount throughout the repayment period. The repayment plan is up to 10 years and the amount may be adjusted if there are changes in the variable interest rate.

Graduated Repayment Plan:  The monthly payment amount generally starts lower and increases at scheduled times throughout the repayment period. An interest only payment for the first two to four years and it usually takes up to 10 years to repay.

Income-Sensitive Repayment Plan:  The monthly payment amount is adjusted annually based on your monthly income. It takes up to 10 years to repay and payments cannot be lower than the interest.

Extended Repayment Plan:  Certain borrowers with more than $30,000 in outstanding principal and interest may repay over a period not to exceed 25 years.

Income-Based Repayment Plan (IBR):  The monthly payments are based on your income, family size, and federal student loan debt. Repayment term may be greater than ten years. Total amount paid in interest over the new repayment plan will be greater than the total interest paid over a standard repayment plan, but any outstanding principal and interest still owed after 25 years of qualifying payments will be forgiven. Must reapply annually.

Understanding Deferments & Forbearances

Know your alternatives

If you have difficulty making your payments contact your lender, holder or servicer immediately to determine if you qualify for either a deferment or forbearance.

Deferment:  A period of time during which a lender temporarily postpones regular payments.  Deferments are considered an entitlement, which means your lender must grant them if you qualify. It is your responsibility to request a deferment from your lender and provide the necessary documentation for eligibility. If you have been given a deferment, the federal government will pay the interest that accrues on your Subsidized Stafford Loan; however, you will be responsible to pay the interest accruing on the Unsubsidized Stafford Loan.

Forbearance:  A lender temporarily reduces, extends, or postpones  regular loan payments.  Forbearances are usually granted if medical or  dental interns enroll in an internship and have exhausted their deferment  eligibility if the borrower is serving in a national service position under the  National and Community Service Trust Act of 1993; and if annual debt equals  or exceeds 20% of a borrower’s disposable income.  The federal government  does not pay the interest accrued on the Subsidized Stafford Loan. You are  responsible for interest and principal amount on both the Subsidized and  Unsubsidized Stafford Loans.

Default through Delinquency

Avoid the consequences

Delinquency occurs when a borrower fails to make monthly payments on time; the student is considered delinquent when missing one payment!  History of payments is reflected on a borrower’s credit report and will be reported to the National Credit Bureau.  If no payments are made from Day 1 to Day 270, the lender may submit a claim to the guarantor which takes 90 days to process the claim; there are 360 days of period of default.

Consequences if a borrower goes into default:

• Charged up to 25% in collection fees
• Interest rates can increase
• Wages may be garnished
• Borrowers’ may lose their professional license (e.g. Medical, Law)
• Borrowers will lose their eligibility for future financial aid

Help us help you avoid federal loan delinquency. Remember you have resources at SCNM. Contact the Financial Aid Office at 480-858-9100 x 202.

Loan Repayment Calculator, click here

Questions regarding Financial Aid and Scholarships?
Contact us at 480.222-9202 or e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it