Most Frequent Doubts and Questions
Q. What loans am I eligible for?
A. You could be eligible for a subsidized or non-subsidized loan. The subsidized loan is interest free while you are studying or during a grace or postponement period. On the other hand, a non-subsidized loan begins to accumulate interest from the moment the payout is made.
Q. Can I reduce, cancel, or increase my loan amount?
A. Yes. Visit your institutionâ€™s Admissions and Financial Assistance Office.
Q. Does the interest rate change every year?
A. Student loan interest rates are revised by the Federal Department of Education on July 1st of each year.
Q. When does the loan payment period begin?
A. Your loan payment period begins six months after the first separation and when you are carrying less than the required academic credit load.
Q. What payment options do I have?
A. Payment plan options vary with each agency and the borrower should contact the agency to select the best plan that suits his or her situation.
Q. What will my payment plan be?
A. The agency that has your loan will send you a document allowing you to select a payment method. Once you make your selection, you will receive a document notifying you of your monthly payment amount and when you must make your loan payments.
Q. How will my loan payments be collected?
A. Depending on the agency, you could receive a payment book or a monthly invoice similar to what you receive for your credit card.
Q. What information does my Billing Summary contain?
A. Your Billing Summary will include the following information: account number, total amount owed, loan balance, last payment received (amount), and the payment due date.
Q. When is my loan interest accumulated?
A. This depends on the loan type. For example:
- For non-subsidized student loans, PLUS loans, and the non-subsidized portion of a consolidation loan, interest is accumulated from the time of the payout until the loan is paid in full.
For subsidized loans, interest is accumulated during forbearance and the payment period. Interest is not accumulated on a subsidized loan during the study period or during a grace or postponement period.
Q. Why does the amount of my fixed payment increase when the interest rate rises?
A. The fixed amount of your payment increases when interest rates rise in order to ensure that the loan is paid in full within the stipulated timeframe.
Q. What is a consolidation loan?
A. A consolidation loan combines various loans from different agencies with different payment schedules into one agency with one fixed interest rate for the entire life of the loan. It is important to remember that a consolidation loan is a new loan and does not have the same benefits as the previous loans.
Q. When can I apply for a consolidation loan?
A. Preferably when you discontinue your studies or during a grace period.
Q. Will loans paid through EDA (Electronic Debit Account) continue receiving a 0.25% discount when the rate changes?
A. If your account is being debited electronically, you will continue to receive a 0.25% discount on your interest rate when interest rates change.
Q. How can I get more information on the Upromise Program?
A. You can find important information on this program and how to sign up at www.upromise.com
Q. What is the Dividend Program?
A. It is a benefit for subsidized and non-subsidized loans that banks offer to borrowers.
Q When can I apply for a payment reduction or postponement?
A. Once the repayment period begins and you cannot make your payment for a justifiable reason, it is important to contact your Service Agency as soon as possible to find out what kind of forbearance or postponement you are eligible for. Remember, by looking for alternatives right away you avoid adverse consequences related to your loan.
Q. Why is it important to apply for a payment reduction or postponement?
A. If for some reason students cannot make their student loan payments, it is important to apply for these rights on time in order to avoid consequences such as: affected credit; non-eligibility for deferments and postponements; loss of eligibility for Title IV Funds (Pell Grant and other federal assistance); balance increase from late fees, interest, court and collections expenses. The federal government could also retain your income tax refund, seize your wages or property, etc.
Q. Is the institution responsible for notifying the bank or my service agency if I transfer or change personal information?
A. No. As the borrower, you are completely responsible for notifying the bank and/or service agency of any change that affects your agency account.
Q. If I discontinue my studies and do not graduate, does my grace period begin?
A. Yes. Remember that your loanâ€™s grace period begins with the first study separation, reduction in the required academic credit load, discontinuation of studies, or at graduation.
Q. Must I repay my loan even if I decide to discontinue my studies?
A. Yes. Remember that you are responsible for paying off your loan, even if you decide to discontinue your studies.
Q. Will I be penalized if I pay off the loan balance before the established period?
A. No. You can pay your loan in full anytime you wish without penalties.
Q. If I donâ€™t receive the monthly payment coupons, do I need to make a loan payment?
A. Yes. Remember that you do not need a coupon to make loan payments.
Q. Do I have to pay to receive services from the Ombudsmanâ€™s Office?
A. No. This is a free benefit.