Module 3: Student Loans

objectives
Know the different types of student loans, as well as the responsibilities, duties and rights of
the loan provider.
Analyze the consequences of defaulting on student loans.
Analyze the different alternatives that can be used when there are problems making the
payment of the loan or loans that have been made.
Learn about Educational Loans
The results of your FAFSA will help the University determine what kind of loan you can make.
Don't borrow more than you need!
Although the temptation arises, you do not have to accept the full amount of the loan offered
in the financial aid package awarded. Try to borrow only what you need to cover tuition,
books, and supplies.
The sum obtained must be managed very carefully.
The money you borrow now will affect your lifestyle and your ability to meet other financial
obligations in the future.
Before you sign a promissory note, you should have a clear understanding of the different loan
programs.
If you choose to apply for a student loan from the available programs, it is important to keep in
mind the following:
The interest rate on student loans is lower than that offered by commercial entities, since the
Federal Department of Education subsidizes the loans.
If you are a student enrolled at least half time and you get a loan, you will not have to start
repaying it until you finish your studies or reduce the academic load to less than half time.
As comfortable as these conditions are, it is important to emphasize that the loan must be
repaid.
If you don't, you may incur late payment or default which will affect your credit history and
your financial possibilities in the future.
When you make a student loan
Think carefully about the amount of money you are going to borrow.
It is very important that you reflect on what the obligation to pay a loan debt entails, before
contracting it.
If you do not pay the debt within the stipulated period, you may incur in a payment default,
which will have serious consequences and will damage your credit history. In addition, you will
fall into a status known as "default" (delinquency) that will affect your eligibility for financial
aid.
By signing the MasterPromissory Note you agree to:
Return the money according to the conditions established in said document.
That, except in cases of debt cancellation, you must return the money, even if you do not finish
your studies.
Make your payments regardless of whether or not you receive invoices.
Even if you do not receive payment notice or any invoice, you have to make the payments.
You must pay the full amount of the monthly fee stipulated by the payment plan.
Continue making payments while you are in the process of requesting a payment deferment
(forbearance) or deferment.
You must continue to pay until you receive notice of approval of any deferral or postponement
request. If you do not make the payments, you can fall into default.
Keep a copy of any petition you file and write down any communication you have with the
lending agency.
You must inform the provider agency or the servicer of your loan when:
you graduate
You are enrolled at less than half time.
Change your first or last name, address and/or social security number.
You transfer to another university.
Entrance Interview
After your student loan application is reviewed, you must complete the Entrance Interview.
Without the Entrance Interview, the Institution will not be able to disburse it.
This interview will provide you with useful information and tools to help you understand your
responsibilities regarding the loan(s) you have been approved for.
Exit Interview
Before you graduate, drop out, or transfer to another institution, you must complete the exit
interview.
The purpose of this interview is to remind you of the rights and responsibilities you have when
repaying the money of the acquired loans.