Subsidized Loan Interest Rates: First Disbursement on or after...but prior to Interest rate on the unpaid balance July 1, 2009-July 1, 2010 5.6% July 1, 2010-July 1, 2011 4.5% July 1, 2011-July 1, 2012 3.4% July 1, 2012-July 1, 2013 3.4% July 1, 2013-July 1, 2014 3.4% (may change to 6.8% per Congress) Unsubsidized Loan Interest Rates: First Disbursement on or after...but prior to Interest rate on the unpaid balance Loans disbursed July 1, 2009 or later 6.8%

When you are accepted at Clark College, your student loans are NOT automatically transferred to the Clark College financial aid office.  It is important that you cancel your existing pending loans, from your previous school, by contacting their loan department.

Taking the time now to cancel current loans will ensure that your college student loans are in order when you officially transfer.

There are two main types of Federal student loans: Subsidized and Unsubsidized. Subsidized loans are loans in which the government subsidizes or pays the interest that accrues on student loans while the student is in school and in their grace period. Unsubsidized loans are loans in which the student is responsible for the interest which accrues on his/her loans while in school and during the grace period. Interest can be added to the principal balance through a process called capitalization.

There are also Federal PLUS (Parent Loan for Undergraduate Students) Loans. Parents of dependent undergraduate students enrolled at least half-time (6 or more credit hours) may qualify for a PLUS loan regardless of family income. The yearly loan limit is "cost of education" minus any other financial aid received. The loan is made in the parents' name, and repayment begins 60 days after the first disbursement. The interest rate on PLUS loans is 8.5%.

Federal Regulations set the maximum loan limits below (effective as of July 1, 2010).

Dependent	Subsidized and/or Unsubsidized	Additional Unsubsidized	Annual Limit
1st year	$3,500	$2,000	$5,500
2nd year	$4,500	$2,000	$6,500

Independent	Subsidized	Additional Unsubsidized	Annual Limit
1st year	$3,500	$6,000	$9,500
2nd year	$4,500	$6,000	$10,500

The Direct Loan Program charges a loan origination fee. Federal Direct Student Loans are charged a 1.051% origination fee.

Students have six months after graduation (or dropping to less than half time attendance) before loan payments become due.

If you do not use the entire six month grace period before you re-enroll at least half time, you will get the entire six month grace period back.  If you enroll at least half time, you can request an enrollment deferment from the institution you are currently attending.  As soon as you drop below half time, your past loans will be put into the six month grace period.

If you're having trouble making payments on your loans, contact your loan servicer as soon as possible. Your servicer will work with you to determine the best option for you. Options include:

• Changing repayment plans.
• Repayment Plans and Calculators
• Requesting a deferment—If you meet certain requirements, a deferment allows you to temporarily stop making payments on your loan.
• Requesting a forbearance—If you don't meet the eligibility requirements for a deferment but are temporarily unable to make your loan payments, then (in limited circumstances) a forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments.

If you stop making payments and don't get a deferment or forbearance, your loan could go into default (see Default section below), which has serious consequences.

Default

If you default, it means you failed to make payments on your student loan according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe. Here are some consequences of default:

• National credit bureaus can be notified of your default, which will harm your credit rating, making it hard to buy a car or a house.
• You will be ineligible for additional federal student aid if you decide to return to school.
• Loan payments can be deducted from your paycheck.
• State and federal income tax refunds can be withheld and applied toward the amount you owe.
• You will have to pay late fees and collection costs on top of what you already owe.
• You can be sued.

For more information and to learn what actions to take if you default on your loans, see the Department of Education’s Default Resolution Group Web site.

Contact the Department of Education at this web link: http://www.loanconsolidation.ed.gov/

Using the loan for education expenses: You may use the loan money you receive only to pay for your education expenses at the school that is giving you the loan. Education expenses include school charges such as tuition, room and board, fees and indirect expenses such as books, supplies, equipment, dependent child care expenses, transportation and rental or purchase of a personal computer.

All students must be enrolled on at least a half-time basis (at least six credit hours per quarter) in order to qualify for a student loan disbursement.

If students withdraw from classes before the end of the term, a portion of the loan must be repaid. All students must attend classes and maintain satisfactory academic progress to maintain loan eligibility. Click here for information relating to Satisfactory Academic Progress.

Direct Loan Borrowers
Phone: (800) 848-0979 or (315) 738-6634
FAX: (800) 848-0984
TDD: (800) 848-0983
Web: Direct Loan Servicing

Resolve questions about:

• Your loan
• Address/name changes
• Repayment estimates
• Repayment plan changes
• Deferment and forbearance forms

Direct Loan Consolidation
Phone: (800) 557-7392
FAX: (800) 557-7396
TDD: (800) 557-7395
Email: loan_consolidation@mail.eds.com
Web: Direct Loan Consolidation

Resolve questions about:

• Consolidation loan applications
• Consolidation loan status

Defaulted Student Loans:
Phone: (800) 621-3115
Email: DCS_HELP@ed.gov

Find out about:

• Avoiding default
• Resolving disputes
• Ordering loan cancellation / discharge request forms

It is important to keep all of your student loan papers and correspondence for your records. If you have a problem with a federal student loan, you should contact your loan holder or loan servicer to try and resolve the problem. If you are unable to resolve the problem on your own, you may contact the Federal Student Aid (FSA) Ombudsman for assistance. The FSA Ombudsman works with federal student loan borrowers to resolve loan disputes or problems from an impartial, independent viewpoint. You can reach FSA Ombudsman at:

Office of the Ombudsman
United States Department of Education
830 First Street NE
4th Floor UCP-3/MS 5144
Washington, DC 20201-5144
Toll-free phone: (877) 557-2575
Internet: http://www.ombudsman.ed.gov/

There is a variety of tax credits, deductions and savings plans available to taxpayers to assist with the expense of higher education.

A tax credit reduces the amount of income tax you may have to pay.

• American Opportunity Credit
• Lifetime Learning Tax Credit

A deduction reduces the amount of your income that is subject to tax, thus generally reducing the amount of tax you may have to pay.

• College Tuition & Fees Deduction
• Student Loan Interest Deduction

You should contact a tax advisor or visit www.irs.gov for detailed information on tax credits, deductions or other tax benefits for postsecondary students.