Student Loan Debt Options

Student Loan Repayment Restart | January 1, 2023

The Department of Education (ED) announced that the federal student loan administrative forbearance period will end on December 31, 2022. Federal loan borrowers will begin repayment and see interest accrual restart beginning January 1, 2023.

Prepare for Repayment

Update Your Contact Information & Carefully Read All Correspondence from Your Loan Servicer

  • Federal student loan servicers should contact you about the restart of your loan payments. Be sure to read all correspondents you receive from your loan servicer carefully, so that you can make an informed decision about your payments.
  • If you have not received any messages from your loan servicer, update your contact information so that you receive all important messages regarding your federal student loans.

 

View Your Loans & Understand Your Repayment Plan

  • View and manage your federal loans by logging in to Federal Student Aid. Most students have a mix of federal and private student loans, it’s important to understand what your breakdown is.
  • Students on an income-driven repayment plan (IDR) may need to recertify their annual income before repayment begins. Income-based repayment plans include:
    • Income-Contingent Repayment (ICR)
    • Income-Base Repayment (IBR)
    • Pay as Your Earn (PAYE)
    • Revised Pay as You Earn (RPAYE)
  • If you previously had your loan payments set to automatic debit, log into your account, and ensure that function is reset so you don’t miss any payments.

 

Take Time to Budget

  • Creating a monthly budget is crucial in planning for the restart of loan payments. Start building your budget now and track your spending habits to create a realistic budget.
  • Make an appointment with an HCC Financial Coach for help preparing a budget.

 

Federal Load Industry Updates

Delinquent loans

  • All prior periods of delinquency are brought current at the end of the administrative forbearance on May 1, 2021.
  • Private collections agencies ceased 3/13/20-5/1/22, but will restart making collection calls, accepting auto payments, and sending letters and billing statements beginning May 1, 2022. Borrowers can continue their payment arrangement related to their federal student loan by contacting ED’s Default Resolution Group at 1 (800) 621-3115.

Default loans

  • Private collections agencies ceased 3/13/20-5/1/22, but will restart making collection calls, accepting auto payments, and sending letters and billing statements beginning May 1, 2022. Borrowers can continue their payment arrangement related to their federal student loan by contacting ED’s Default Resolution Group at 1 (800) 621-3115.

Servicer transitions

  • Three loan servicers have announced transitions out of federal student loans. These transitions will happen at different speeds throughout 2022.
    • Fed Loan Servicing (PHEAA) will be transferring loans to MOHELA, Aidadvantage, and Nelnet
    • Granite State will be transferring loans to Edfinancial
    • Navient will be transferring loans to Maximus

 

 

Resources to Consider

The U.S. Department of Education’s office of Federal Student Aid offers information on how financial aid works, resources to pay for college, and loan repayment options. Visit, https://studentaid.gov/ to learn more.

 

The National Student Loan Data System (NSLDS) database is the U.S. Department of Education's central record for student aid. The NSLDS database provides a consolidated and cohesive view of federal student aid loans and grants that can be tracked through their entire lifecycle from aid approval through disbursement and repayment.

 

Take Charge of your Student Loan Debt

3-Steps to Take Charge of your Student Loan Debt

Step 1. Pick the right repayment option at StudentLoans.gov/repay.

Step 2. Consider your repayment options, including enrolling in an income-based repayment plan. You can enroll in an income-based repayment plan at StudentLoans.gov.

Step 3. Confirm if your fulltime (30+ hours) nonprofit or public service employment qualifies for Public Service Loan Forgiveness Program. The Employment Certification Form can be found at StudentAid.gov/publicservice.

What else you can do:

  • Certify income and family size each year. This is required to see if you qualify to keep payments low.
  • Certify employment each year. This is the best way to be sure that you are on-track for loan repayment and loan forgiveness.
  • Ask for help from your loan servicer if you need additional support. Contact information for your loan servicer is posted at StudentAid.gov/servicer

 

Resources to Get Informed and Make a Plan

My Federal Student Aid

Borrowers can log in at www.studentAid.gov/login to view their federal student loan information, including loan balances, interest rates and loan servicer contact information.

Repayment Calculator

Borrowers can use Estimator tool at www.StudentAid.gov/repayment-estimator  to compare different monthly payment options based on their loan debt, income and family size. 

Repayment Basics

By visiting www.studentAid.gov/repay, borrowers can learn how to make payments on their loans; find the right repayment plan; figure out what to do if they can’t afford their payments; and see what circumstances might result in a loan being forgiven, canceled or discharged.

HCC Financial Coaches

Many borrowers don’t have a financial action plan in place. HCC Financial Coaches help you get on track by connecting you with resources to create an action plan to budget, monitor spending habits and save money. The coaches are also committed to informing students, alumni, faculty, staff and community members about public service loan forgiveness and affordable, income-based federal student loan repayment options. Feel free to reach out to the coaching team, by email at hcc.fincoach@hccs.edu

 

Beware of Student Loan Scams

As you’re researching repayment and forgiveness options, make sure you’re getting information from trusted sources, like .gov websites or your servicer’s website. The government and your servicer will never charge application or maintenance fees — so if you’re asked to pay, walk away.  

Types of Student Loan Scams

There are a variety of different ways that scammers could take advantage of borrowers. Here is a short list from the Department of Education.

  • Require you to pay up-front or monthly fees for help.
  • Promise immediate and total loan forgiveness or cancellation. 
  • Ask for your FSA ID. 
  • Ask you to sign and submit a third-party authorization form or a power of attorney. 
  • Claim that their offer is limited and encourage you to act immediately. 
  • Communications contain spelling and grammatical errors. 


Resources

  • If you receive a letter in the mail, an email, or a phone call from a student loan debt relief company who does any of things listed above, please contact your student loan servicer to confirm the validity of their services. Contact information for your loan servicer is posted at www.StudentAid.gov/servicer
  • The Department of Education also has a comprehensive resource to help you understand which companies and claims are legitimate. Please visit https://studentaid.ed.gov/sa/repay-loans/avoiding-loan-scams for more information.

 

Contact Financial Coaches

Central College

 

Coleman College

 

Northeast College Campuses (Northline and Northeast)

 

Northwest College Campuses (Alief, Spring Branch and Katy)

 

Stafford and Missouri City Campuses

 

Southeast College

 

West Loop

 

Resources