Congratulations, you're graduating! You've finally finished school and are ready to start a new chapter in your life. Graduation marks an end to one part of your life and the beginning of another. Graduation also means a beginning and an end for your student loans. Your student loans will now enter the next stage in the process and soon you will be required to make monthly payments on those loans.
You're bound to have many questions about repaying your loans: When do I have to start making payments? How much will my payments be? What if I can't make these payments, etc.?
This section provides the answers to those questions as well as other information for those who have outstanding: subsidized Federal Stafford Loans, unsubsidized Federal Stafford Loans, and Federal Supplemental Loans for Students (SLS).
These loan programs are part of the Federal Family Education Loan Program (FFELP) which was formerly called the Guaranteed Student Loan Program (GSLP).
In the following pages you will learn about the important aspects of repaying your student loans. Even if you have decided to end your education prior to graduation, this information applies to you. Retain this booklet as a reference until your loan is paid off. Then once you've received your promissory note stamped "Paid In Full" you can again tell yourself congratulations.
Important Terms
Subsidized Federal Stafford Loan:
A low-interest education loan for undergraduate, graduate and professional students with demonstrated financial need. The federal government subsidizes the cost to the borrower by paying the interest during certain times, such as while the borrower is in school.
Unsubsidized Federal Stafford Loan:
A low-interest education loan for undergraduate, graduate and professional students in which the federal government does not subsidize interest. Students do not have to demonstrate financial need to be eligible for this loan.
Federal SLS Loan:
An education loan for independent undergraduate, graduate and professional students. As of July 1, 1994, the SLS Program was eliminated.
Federal Family Education Loan Program:
A federal education loan program designed to help students pay their educational expenses by supplementing the amount the student or student's family can contribute to the education costs. The FFELP was formerly called the Guaranteed Student Loan Program (GSLP). The loans within the FFELP include subsidized and unsubsidized Federal Stafford, Federal SLS, Federal PLUS, and Federal Consolidation Loans.
Grace Period
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