Consumer Information

Terms of loan and repayment schedule

Grace Periods, Deferments, and Leaves of Absence

Loan beneficiaries have a grace period prior to staring loan payments. These grace periods begin after graduation, withdrawal from the university, or a change in student status to less than a “part time student.” During this grace period, beneficiaries do not make payments on the balance or interests of subsidized loans.

Upon graduation or changing to less than “part time student” status, beneficiaries are responsible for communicating said change to the pertinent grantors. The grantor will then inform the beneficiary of the time at which loan repayments will begin. The beneficiary is responsible for initiating timely payments even in the absence of a repayment notification from the grantor.

Students who withdraw from the university and who do not enroll at another academic institution within a six (6) month period, loose their grace periods on all federal loans under his or her name.

Under special circumstances, beneficiaries may apply for deferments on their loan payments. Said deferments allow students to delay payments for specified periods of time. If the student does not pay interests on unsubsidized loans during this period, interest payments will accumulate and become part of the principal payments or overall balance of the loan to be paid.

Beneficiaries are responsible for filling out deferment requests and must submit said requests to the Office of Financial Aid. This office will proceed to certify that the beneficiary is a student of our University. Beneficiaries must be aware that failure to submit deferment requests in a timely fashion will result in a loan default.

For beneficiaries of Stafford loans after July 1, 1993 the following deferment options are available:

  • If the student is registered for less than a “part time student” course load at an eligible academic institution.
  • A 3 year deferment if the beneficiary can document that he/she has been actively seeking employment and has not been able to find it.
  • If for a period of three (3) years, the beneficiary experiences substantial economic hardship.

If the beneficiary is ineligible for the aforementioned deferments and is unable to make payments, a forbearance should be requested. Said forbearance may be granted for a limited and specified period of time. During the forbearance period, payments may be deferred or reduced. In spite of forbearance, payments on the interests should still be made, lest they later become part of the principal payments.

For nonfederal loans, beneficiaries may only qualify for forbearance instead of deferment. Beneficiaries should contact the grantor directly to evaluate forbearance options.

Loan Default

Loans will be considered in default when the beneficiary is not able to make timely payments or is not otherwise able to comply with the general terms and conditions of the loan. If default occurs, the beneficiary loses the ability to make monthly payments and must pay the remaining balance on the loan, as well as any other associated fees. Failure to do so may lead to the following actions.

  • Loss of federal and state tax refunds.
  • Legal actions, with the due consequences to the specific legal action taken.
  • Increase in loan principals that may include collection fees, attorney fees, court costs, and any other fees incurred by the grantor in the process.
  • Loss of professional license.
  • Loss of eligibility for federal student aid and other federal assistance programs.
  • Loss of eligibility for deferments and forbearances.
  • A negative credit rating and the financial consequences associated with said loss of good credit.
  • Your employer (at the request of the federal government) can withhold money from your pay and send the money to the government. This process is called wage garnishment.
  • The loan holder can take legal action against you, and you may not be able to purchase or sell assets such as real estate.
  • Federal employees face the possibility of having 15% of their disposable pay offset by their employer toward repayment of their loan through Federal Salary Offset.
  • You may not be able to access your transcript.
  • You will find examples of repayment schemes in both entry and exit interviews.

For more information refer to:

Leave of Absence (LOA)

Students can request a Leave of Absence for one academic term. This license cannot exceed 120 days. Students can only apply for two LOA during his academic life.

While on LOA, students are not eligible for Direct Loan funds.

For policies and procedures regarding LOA, please visit the following link:


Leave of Absence Request

The student must read the Leave of Absence policy before starting the request.
All supporting documentation must be included with this form:
If the student is receiving financial aid then he/she must discuss the possible consequences of this process with the Office of Financial Aid staff.
The student must deposit this form (along with the necessary signatures and supporting documentation) in the Registrar’s Office.

The Registrar’s Office will notify the student regarding the status of his/her request.