The Whats & Whys
Federal student loans, and the many federally subsidized repayment programs that are available form the U.S. Department of Education, are flat out complicated. The Advisors at Higher Level Processing will simplify everything for you, but for those clients that prefer to review the details before contacting HLP we have developed the HLP Knowledge Vault.
Student Loan Facts
Like most Federal programs, subsidized student loan repayment programs are detailed if not best described as esoteric.
Before reviewing the program details, it is helpful to review the basic facts, terminology and structure. This section of the knowledge vault covers these fundamentals.
Federal student loans are guaranteed by the U.S. Federal Government and may have lower interest rates or fixed interest rates. There are multiple repayment plans and no prepayment penalties.
Default occurs if you fail to make payments on time. Once a student loan goes into default the full balance of the loan becomes due – immediately. It also means that other options for delaying payment, including student loan deferment and forbearance, are no longer available.
The three most common types of loans are:
While there are no absolute ways to determine which student loan programs are best there are some general guidelines.
There are two different types of Federal Stafford Loans: (i) subsidized, (ii) unsubsidized.
There are times when hardships such as unemployment or under-employment can make it difficult for you to repay your student loans. Higher Level Processing is here to assist you in finding a financial hardship student loan program that might apply to your situation. Our experts can help you understand what qualifies as a hardship, and we’ll explore your options for relief.
Learn the Facts
A hardship program for student loans can sometimes defer your student loan payments for up to three years. These programs are often overlooked by those who need relief, and your loan provider may not be eager to bring them to your attention. You should know the facts about financial hardship student loan options, and that is where Higher Level Processing can help.
There are many factors which could possibly qualify you as someone that is suffering an economic hardship. These include periods of unemployment, maternity leave, or disability. Each student’s situation is unique. This is why it is important for you to learn the facts about each hardship program for student loans, and you need to learn these facts from a company that is experienced in student loan debt solutions.
We can Help
At Higher Level Processing we will provide you with the truth about financial hardships and the resources that are available for those in this unfortunate situation.
This section of the knowledge vault does not articulate every repayment program available from the U.S. Department of Education.
It provides the next level of detail covering policy intent program structure, definitions and qualifications.
The standard repayment term for a Stafford loan is 10 years. You may be able to extend repayment by deferring or consolidating your Stafford loans. You can choose one of the following plans:
Forbearance is a tool to assist borrowers in meeting their loan repayment obligations. Lenders permit a temporary cessation of payments for an extension of time or temporarily accepts smaller payments.
Forbearance of payments is typically granted when the borrower is experiencing financial difficulty, but can be requested for any of the following reasons: (i) unemployment, (ii) partial disability, (iii) other documented hardship.
If the borrower is ineligible for a deferment, he/she can still receive forbearance. Unlike deferment, it doesn’t matter if the loans are subsidized or not.