Are you preparing to enter repayment on your loans?
As you prepare for the transition from Rutgers into your career, you will be working with your loan servicer(s) in repayment. Be sure that your address and contact information is up to date and pay special attention to any correspondence from loan servicers.
Federal Loan Repayment Estimator
What Happens When You Graduate
Grace Periods
When you graduate, your loan servicer(s) is notified that you are no longer in school and you automatically enter any grace or similar period(s) you have on your student loans.
Different loans may have different grace periods, so loans may enter repayment at different times
- Stafford Loans have a 6 month grace period
- Perkins Loans have a 9 month grace period
Some loans do not have grace periods and may come due immediately upon graduation. Inquire with your loan servicer for details.
Grace periods are “loan specific,” so if you used up a grace period on any loans you had before starting school, those grace periods are gone and those loans will come due when you graduate, six months earlier than some others.
Entering Repayment
Approximately 30-45 days prior to the expiration of your grace period, watch for a notice from your loan servicer that your loan is about to enter repayment. Be sure your loan servicer(s) has your current address and that you know what graduation date is reported for you at Rutgers.
Notice from loan servicer(s) should reference several options, such as choosing a repayment plan and actively repaying your student loans, or choosing to postpone your payments through deferment or forbearance.
Inceptia
Rutgers University has partnered with Inceptia to help simplify the loan repayment process. Borrowers can expect to hear from Inceptia regarding their situation throughout their enrollment time and also upon separation from enrollment at Rutgers.
Inceptia, a division of the National Student Loan Program (NSLP), is a nonprofit organization providing leadership and innovation in higher education access, verification, student loan repayment, default prevention, financial education, and more. Inceptia is working with schools to create a world where students are less burdened by the anxiety of student loan debt. Where financial aid offices are freed from time-consuming processes and tasks that pull them away from helping students. And where default rates continue to fall even as loan amounts increase.
At Inceptia, it is their mission to support schools as they arm students with the knowledge needed to become financially responsible citizens - without accumulating the burden of debt and default. Inceptia provides the confidence and proven solutions you and your school can count on - helping ensure a brighter financial future for your students.
Loan Repayment Options
The repayment options listed below are for Stafford, Grad PLUS, and Federal Consolidation Loans. While there are some restrictions, you may switch repayment plans if needed; contact your loan servicer(s) if you have questions about changing repayment plans.
Standard
Graduated
Income-Driven (Income-Related) Plans
Consolidating Your Loans
A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs. There are both advantages and disadvantages to consolidation, and while it is an effective debt management tool for some graduates, it is not appropriate for everyone.
Complete Your Loan Consildation
Postponing Payments
There are two ways to postpone payments on federal loans: deferment and forbearance
Check promissory notes and disclosure statements for postponement options on non- federal loans including private and institutional loans.
Quick facts regarding deferment and forbearance:
- Subsidized loans remain interest free during deferment
- Interest accrues on all loans during forbearance
- Borrowers remain in “good standing” during both deferment and forbearance
- Borrowers must meet specific statutory requirements for deferment eligibility
- There are multiple kinds of forbearance and loan servicers have some discretion granting forbearance
- Borrowers must submit multiple requests if they have more than one loan servicer