Student Loan Services Don't dig yourself into a hole! We want to help you manage the repayment of your student loans. The following information will help you start working out a plan for repayment. This information is meant simply to answer some frequently asked questions about debt management; it is not meant as a comprehensive guide to managing your debt. How much should I borrow? I'm having difficulty making my loan payments. What options are available for solving the problem? What conditions might help me if I'm behind on my loan payments? What are the possible consequences if I default on my loan? How can I change my mailing address for my loans or my tuition and fees? Where can I learn more? Who should I call for assistance? Information concerning Perkins Loan Rehabilitation. How much should I borrow? Before you take out a student loan, be sure you can make your loan payments. On average, your loan payment should be no more than 5 - 15 percent of your gross monthly income. Review the chart below to estimate the maximum loan debt you should accrue. Occupation Estimated Salary Range 1 Maximum Loan Debt 2 Monthly Payment 3 Accounting $30,000 - $39,000 $30,575 $375 Business Administration $30,000 - $42,000 $30,575 $375 Communications $24,000 - $35,000 $24,500 $300 Computer Science $45,000 - $52,000 $45,850 $562 Chemical Engineering $47,520 - $52,000 $48,450 $594 Economics/Finance $35,000 - $42,000 $35,630 $437 Electrical Engineering $45,000 - $50,760 $45,850 $562 Elementary Education $23,500 - $27,000 $24,000 $294 Investment Banking $35,000 - $43,000 $35,630 $437 Letters/English $25,000 - $33,000 $25,450 $312 Marketing/Sales $29,120 - $37,500 $29,700 $364 Mathematics $39,000 - $45,000 $39,700 $487 Mechanical Engineering $42,000 - $49,000 $42,800 $525 MIS $40,000 - $47,000 $40,775 $500 Nursing $27,000 - $33,000 $27,500 $337 Political Science $28,000 - $35,000 $28,550 $350 Psychology $21,000 - $31,000 $21,375 $262 Sociology $26,500 - $32,500 $27,000 $331 1 Salary Survey: Volume 39, Issue 2(Spring 2000) 2 Based on an interest rate of 8.25% 3 Monthly payment reflects 15% of gross monthly income based on minimum salary range I'm having difficulty making my loan payments. What options are available for solving the problem? Deferment - An authorized period of time during which a borrower may postpone principal or principal and interest payments. Deferments are available while borrowers are in school at least half time, enrolled in a graduate fellowship program or rehabilitation training program, and during periods of unemployment or economic hardship. Other deferments may be available for those who borrowed prior to July 1, 1993. The federal government makes interest payments on subsidized Stafford and certain consolidation loans during authorized deferment periods. Forbearance - An authorized period of time during which the lender agrees to temporarily postpone a borrower's principal repayment obligation. Interest payments continue to be the borrower's responsibility. Forbearances may be granted at the lender's discretion when a borrower can demonstrate good intentions of repaying but is unable to do so. Cancellation - Federal regulations exist that allow the lender to annul all or part of the the borrower's debt if certain circumstances are met (e.g., you've been employed for a certain amount of time in teaching, early intervention, or allied health). Payment Agreement - Refers to a formal agreement between the borrow and the lender that specifies payment arrangements to clear past due debt. Consolidation - A loan program that allows lenders to pay off a borrower's education loans by creating one new loan. By extending the repayment period (up to 30 years depending on the loan amount) and allowing a single monthly payment, consolidation loans can make loan repayment more manageable for borrowers with high loan balances. What conditions might help me if I'm behind on my loan payments? There are several conditions which might help you if you're behind on your payments: You are currently enrolled in college; You are unemployed; You are paying off medical expenses; Your loan payments are too high; You teach elementary or secondary school; You are employed in law enforcement or health care; You are employed by Vista; You are a volunteer in the Americorps; You are participating in the Armed Forces repayment plan. What are the possible consequences if I default on my loan? If you default on your student loans, any of several things may occur: Future financial aid may be denied or cancelled; You may lose entitlement to deferment, forbearance of current loans, or cancellation; Collection costs may be added to the amount already owed; Legal action may be taken to force you to pay; Your wages may be garnished; Credit bureaus may be notified and your credit rating may suffer; Your state income tax refund may be withheld. How can I change my mailing address for my loans or my tuition and fees? To change your address for tuition and fees, you can: Send a fax to (405) 325-7665. Please provide your name, student ID number, past mailing address, your new mailing address, and your signature. Send a letter to our office. Provide your name, student ID number, previous mailing address, new mailing address, and signature. Our mailing address is: Office of the Bursar 1000 Asp Avenue, Room 105 Norman, OK 73019 Come to our office in Buchanan Hall, Room 105. A service representative will be glad to assist you with your address change. To change your address for loans, you can: Send a fax to (405) 325-5803. Please provide your name, student ID number, past mailing address, your new mailing address, and your signature. Specify on the fax the loans for which you would like to change your address. Send a letter to our office. Provide your name, student ID number, previous mailing address, new mailing address, and signature. Specify in your letter the loans for which you would like to change your address. Our mailing address is: Office of the Bursar 1000 Asp Avenue, Room 208 Norman, OK 73019 Come to our office in Buchanan Hall, Room 208. A service representative will be glad to assist you with your address change. Where can I learn more? There are several sites on the web with more information about student loans and the management of student loan debt. The Oklahoma Guaranteed Student Loan Program The U.S. Department of Education - Guide to Defaulted Student Loans The Oklahoma State Regents for Higher Education Sallie Mae The U.S.A. Group Federal Perkins Loans The National Higher Education Loan Program Inc. Who should I call for assistance? To work out a plan for debt management tailored to your own needs, or to have any questions answered, please call us at 325-5876 or 325-5877. If you're past due on your tuition and fees, call (405) 325-5879. If your payments are past due on your Perkins or OU Institutional loans (Robey, Clark, Sells, Lew Wentz), call (405) 325-5876. If you're past due on your Stafford loan payments, contact the bank that is your lender for that loan. Perkins Loan Rehabilitation - Effective July 1, 2000. Who is eligible? All Perkins Loan borrowers who have defaulted on their Perkins Student Loans. What must be done to rehabilitate the loan? Twelve consecutive monthly payments must be made. Any missed or late payment causes the rehabilitation to stop. A payment is considered late if the University has not received the payment by the 10th of the month. The minimum amount of the payment is determinied by the University and the borrower. Borrower must request rehabilitation. How many times can a Perkins Loan be rehabilitated? A Perkins Loan my be rehabilitated only once. There is no limit on the number of times a borrower may attempt to rehabilitate a loan. What are the advantages to rehabilitation of a Perkins Loan? Restoration of Title IV eligibility. Restoration of the benefits and privileges of your promissory note. A return to regular payment status. A new repayment period of up to ten years. Removal of the default from your credit history.