REPAY

What You Need to Do

Exit counseling

You will receive a notice about exit counseling when you graduate or begin attending school less than half-time.* At this session, you'll be given information on your loans and when repayment begins.

When you graduate or withdraw you will have six months before your first payment is due. This is called a grace period.* (PLUS Loans don't have a grace period). This time can allow you to get financially settled, select your repayment plan* and determine the amount of income you need to put toward your student loan each month.

Why is the amount the school told me I must repay more than the amount I actually received?

In addition to interest,* there are fees and charges required to get these loans.

Loan fees* are deducted proportionately from each loan disbursement* you receive. This means the proceeds you received were less than the amount you actually borrowed. You're responsible for repaying the entire amount you borrowed and not just the amount you received in loan disbursements.*

• Direct Loans: For all Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2007, and before July 1, 2008, the loan fee (also called origination fee) is 2.5 percent.



• The Direct PLUS loan fee is 4 percent for Direct PLUS Loans made to both parent and to graduate and professional degree student borrowers.



• FFEL Loans: You may be charged fees comparable to the fees charged for Direct Loans. Contact your lender* for more information.