Only borrow what you NEED(Remember loans are easy to accept but they have to be repaid)
Choose subsidized loans first (U.S. Department of Education pays the interest on a Direct Subsidized Loan while enrolled and eligible or in grace period)
Rates can change over time: For current and past rates, click here.
Make Timely Payments: Always make your payments on time, even if you don’t receive a reminder. Partial payments do not meet your repayment obligations.
You only get one grace period (If you graduate, leave school, or drop below 6 hours your grace period begins and you are not responsible for payments during this time)
Students do have the option to reduce the loan amount. If a student receives other types of financial aid (grants, scholarships, etc.) in addition to Stafford Loans, he/she may not qualify for the maximum amounts.
Stay in Touch with Your Loan Servicer: Notify them of any changes in your status (like graduation, dropping below half-time, or changing your contact details). If you face payment difficulties, reach out for available options to keep your loan in good standing. Visit Who's My Student Loan Servicer?
Loan Repayment
You need to be prepared to repay your student loans when you have completed your degree, or are no longer enrolled at least half time in an accredited program. Use the information below to make informed decisions on managing your loan payments and maintain good financial and legal standing.
Student Connections is a company that assists Lone Star College students with navigating the loan repayment process and helps to address any issues you may encounter. Student Connections may reach out to you by phone or email. You can talk to a borrower advocate at Student Connections by calling (866)311-9450.
If you receive a loan while attending Lone Star College, you must complete exit counseling when you leave, drop below half-time enrollment (6 credits), or graduate.
This counseling will assist you with understanding your rights and responsibilities that apply to your loan.
Information Covered
Loan repayment plan
Repayment options
Deferment and forbearance options
Cancelation options
Loan consolidation
Loan rehabilitation
Debt management
Prepayment
Consequences of default on loan and service obligation
Your loan enters a grace period after you leave Lone Star College, drop below a half-time enrollment (6 credits), or graduate. This one-time grace period lasts six months, and you must begin repaying your loan immediately when your grace period ends.
Your loan services will notify you with information about repayment. You can select a repayment plan. Generally, you have 10 to 25 years to repay your loan.
Contact your loan services immediately if you encounter problems making a payment. They can explore your options, which include:
Deferment
Forbearance
Restructured Payment Plan
If you monthly payment does not arrive by the due date, your loan is considered delinquent. In this case, you may face additional late fees and have your delinquency reported to various national credit bureaus..
Failure to maintain monthly payments on schedule can result in serious financial and legal consequences. A loan is considered in default when you fail to make a payment for 270 days.
Once the loan is in default, the entire balance becomes immediately due - principle, interest, and collection fees.
Default loans are not eligible for deferment or forbearance.
Every entity involved in your loan - your school, the financial institution that holds your loan, your loan guarantor, and the federal government - all can take action to recover the money you owe.
Typical actions include:
The U.S. Department of Education requires you to repay immediately the entire unpaid amount of your loan.
The Department of Education sues you, takes all or part of your federal and state tax refunds and other federal or state payments, and/or garnishes your wages so your employer is required to send part of your salary to pay off your loan.
The Department of Education requires you to pay reasonable collection fees and costs, plus court costs and attorney fees.
You are denied a professional license.
You lose eligibility for other federal student aid and assistance under most federal benefit programs.
You lose eligibility for loan deferments.
The Department of Education reports your default to national credit rating bureaus.
Remove loan default
You have three options to remove the default status:
Pay the loan in full
Rehabilitation
Consolidation
This is the fastest way to resolve your defaulted loan status.
Make nine voluntary, consecutive monthly payments on time. During rehabilitation, you can regain eligibility for financial aid after making six voluntary, consecutive monthly payments on time.
Combine all your federal education loans into a single account and get an extension on the repayment periods, allowing for lower monthly payments. This may make if easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period. Consolidating is an option as long as the loans are currently in a grace period or repayment status.
