Contacting a Student Loan Servicer (INFOGRAPHIC)

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Once you know who your student loan servicer is, you need to know your servicer is there to help you successfully repay your loans at no additional cost. It’s important contact your student loan servicer for any of the reasons listed below.

1. Your contact information has changed. If you have a new mailing address, phone number or email, or if your name other demographic information has changed, you need to advise your loan servicer. Remember that you are responsible for repaying your student loan debt, even if you don’t receive bills because your servicer does not have your current contact information.

2. You want to make extra or reduced payments. Your ability to pay may change according to your circumstances. Work with your servicer to make sure extra payments are achieving your goal or that you don’t face unnecessary penalties for reduced payments.

3. You want to apply your payments in a specific way. If you have several loans with the same servicer, you may want payments to apply more heavily to certain loans within your account, such as those with higher interest rates. Find out your servicer’s policy for payment application across loans and how to direct payments differently.

4. You don’t understand your billing statement or the way previous payments were applied. If you don’t understand how your payments are being applied to your account, any fees you are charged or have other billing questions, ask your servicer for an explanation as soon as possible. This will help you better understand the most beneficial way to make future payments.

5. You have fallen behind on your payments. Student loan servicers may report late payments to the national consumer reporting agencies, and nonpayment will eventually lead to default. If you are not able to make your full monthly payment, work with your servicer to determine your options and see if you can avoid negative credit reporting or default.

6. You want to understand borrower benefits. You may be eligible for benefits, such as a reduced interest rate for making automatic electronic payments. Talk to your servicer about potential benefits as soon as possible to learn how to maintain eligibility.

7. You want to consolidate your student loans. Your ability to consolidate your loans depends on your servicer and the types of loans you have. You cannot include private student loans in a federal student loan consolidation under federal loan programs, although private lenders may allow you to combine both types of loans in one consolidation. Some private servicers offer consolidation while others don’t. If you’re considering consolidation, work with your servicers to determine your best options. If you are considering consolidating federal loans into a private loan consolidation, be sure you understand what important federal loan benefits you may lose before applying.

8. You want to align your payment dates. If you have several different loans or more than one servicer, your payment due dates may be different as well. If it’s easier for you to manage a single due date, call your servicers for information.

9. You are close to paying your loans in full. Because student loans accrue interest every day, your principal balance does not equal a payoff amount. If you want to pay your loans in full, contact your servicer for an accurate payoff amount and date to avoid any surprises.

10. You have any additional questions. Each borrower’s circumstances are unique, and you may not be able to find accurate, updated information from your specific servicer online. If you have any questions, call your servicer directly. Your servicer is invested in your ability to successfully repay your loan and wants to help you.

By: Iowa Student Loan

Know Your Student Loan Servicer

KnowYourStudLnServicer

As you begin your life after college, you likely have several different responsibilities, from a new job to managing your own insurance and other activities. One important task is to get to know the servicer or servicers for your student loans.

What Is a Student Loan Servicer?

Your student loan servicer is the organization that handles customer service, including collecting and tracking your payments, for the loan. Depending on the number and type of your student loans, you may have one servicer or several.

Why Do I Need to Know Who My Servicer Is?

You need to be aware of your servicer for several reasons.

  1. You will soon need to start repaying your student loans, and you need to know where and when to send payment. You may also want to set up features, such as an online account and automatic withdrawals, that will help you manage your student loan payments.
  2. Your servicer can help you understand and choose from available payment plans. Most borrowers enter repayment under a standard payment plan that pays off the loan in equivalent monthly payments over the full term of the loan, but you may be able to choose a different plan that works better for your current situation. If you are entering the workforce at less than what you expected to earn, you may be able to make lower payments based on your income or according to a preset formula at first. If, on the other hand, you have the chance to make higher payments now before you have additional family, car and housing expenses, work with your servicer to determine the best way to pay down your debt.
  3. Your servicer may offer assistance if needed. If you don’t have or lose your income or you face another difficulty that makes student loan repayment challenging, you may be eligible to postpone payment. You will need to work with your servicer to understand your options and choose the one that works for you. Be aware that interest continues to accrue on student loans during repayment, and unpaid interest may capitalize, or be added to your principal balance, at the end of assistance. In certain cases, you may be eligible to have some or all your student loan debt forgiven, and your servicer can help with that as well.

How Do I Locate My Servicer?

Your servicer may be the entity that provided your loan or it may be a separate entity that acts on behalf of the current owner of the loan.

  1. Determine if you have federal student loans. Often called Stafford or Direct loans, these loans are provided by the federal government and were likely included in the financial aid package you received from the college you attended.
  2. Use your FSA ID to log in to the National Student Loan Data System. If you filed a Free Application for Federal Student Aid after May 2015, you probably created an FSA ID then. If it’s been some time since you filed a FAFSA, you may need to visit fsaid.ed.gov to create an ID. Then go to nslds.ed.gov to log in and view your federal loan information, including the servicer.
  3. If you have private student loans you obtained from a bank, credit union or other lender to pay remaining college costs after your financial aid, refer to the information your lender provided when you took out the loan and progressed through school. As the due date for your first payment approaches, you will likely receive communications from the lender or servicer about how to make your payment.

If you can’t locate a private student loan servicer, contact the entity that lent you the money or your financial aid office. You may also be able to see your lender or servicer name on your credit report (remember to access a free report at annualcreditreport.com).

By: Iowa Student Loan

Seven Reasons to Seek Seasonal Employment (INFOGRAPHIC)

7ReasonsSeekSeasonalEmploy-infographic

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As you consider summer employment, you may want to look for seasonal opportunities. Working for an organization that does a large part of its business during a specific time of year can be especially suitable for college students. Here’s why.

1. Work during school breaks.

If you carry a heavy course load or need to dedicate a lot of time to your academics to maintain a specific GPA, it may be difficult to fit in a part-time job during the school year. Seasonal employment, however, is often at its peak during the holidays or the summer, fitting nicely into the slots between academic terms. You may even consider a combination, such as working retail over the winter break and working at a resort in the summer.

2. Work over several years.

Once you’ve worked your first season, and especially if you performed well, you can often count on returning to the same place in future seasons. As a bonus, because you have experience, you may find yourself earning more and taking on more responsibility supervising newer workers.

3. Fill gaps in your regular employment.

If you work on campus or for a local establishment that relies on student or faculty patronage through the school year, seasonal work can provide extra hours and cash when that job slows down.

4. Try on your future career.

Many seasonal jobs can be tied to career goals and provide a good opportunity to experience work in your chosen field. Farm and landscaping work abounds for students interested in agriculture or horticulture. Conservation students may be able to find work at a fishing lodge or forestry station. Education majors are in demand as counselors for summer camps. Resorts often look for summer staff to work with the public.

5. Maximize your available time.

Because certain seasonal and recreational establishments do not need to pay overtime to workers, you may be able to work much more than 40 hours a week. Besides accumulating more cash, you may find that you spend less because of your location or work hours.

6. Live inexpensively.

Depending on the work and location, seasonal employers may provide housing at reduced or no charge for workers. If you normally live on campus or are able to sublet your off-campus housing, this means you can earn money throughout the season without a large housing expense.

7. Find new peers.

The appeal of your seasonal work will draw other students, perhaps from other states or regions, who share your values and goals. This is your chance to develop a network of peers who are interested in the same things you are.

By: Iowa Student Loan

How Working Can Help Your College Student

Wking-Help-College-Student

The financial, networking and training benefits of working while in college can seem pretty obvious. Students earn cash that can be used to offset loans, pay college costs and fund other expenses. They learn to value money and to budget. They can connect with professionals who may be able to help them locate and succeed in future jobs. They learn how to navigate the workplace, gain skills they can use in their careers and put classroom lessons into practical use.

What may not be so obvious is how working part-time during the academic year can also boost a student’s grades. Although a student’s first job is performing well in school, working for pay a few hours a week may help the student achieve more academically.

The most recent data available from the National Center for Education Statistics (NCES) backs up earlier research performed by Lauren Dundes and Jeff Marx of McDaniel College in Westminster, Maryland. Dundes’ 2006 study found that the academic performance of students who work 10–19 hours a week was better than all other students’ performance, including those who worked more or less and those who didn’t work at all.

According to 2012 NCES data:

  • The average GPA for all full-time college students is 2.99.
  • Those who worked 10–19 hours per week earned an average GPA of 3.07.
  • Those who worked 1–9 hours per week earned an average GPA of 3.10.
  • Those who did not work earned an average GPA of 2.98.

GPA Per Hours Worked

Estimated Hours Worked Per Week

Average GPA

0–40+ (overall) 2.988
0 2.981
1–9 3.105
10–19 3.065
20–29 2.972
30–39 2.895
40+ 2.971
Source: U.S. Department of Education, National Center for Education Statistics, 2011–2012 National Postsecondary Student Aid Study (NPSAS: 12)

Why Working Works

The reasons for the grade boost may vary widely by student, job and college, but researchers often conclude that the busier schedule forces students to better manage their available time.

Hanna, a graduate of an Iowa high school now attending Kansas State University, agrees. “Having the extra responsibility of a part-time job forces me to study more efficiently,” she said. “I know I won’t have the time to keep procrastinating.”

Another possible reason for the higher average GPA may be that students who work to pay for part of their education expenses are more invested in the outcome. Students who are likely to succeed because of their own goals and motivation may also be more likely to look for and obtain part-time work.

By: Iowa Student Loan

Maximizing Summer Earnings for College

MaximizingSummerEarnings-College

About this time of year, panic tends to set in for new high school graduates looking at their upcoming college costs. If you’re planning to work this summer to offset some of your college expenses, consider these tips.

1. Know How Earnings Affect Your Financial Aid
Although your financial aid has already been determined for the upcoming year, your annual income can affect future aid.

The Free Application for Federal Student Aid, or FAFSA, provides an income protection allowance — the amount you can earn during a calendar year before your financial aid package is affected. For the 2015–2016 year, this amount was $6,400.

You shouldn’t necessarily try to limit your annual income to less than the income protection allowance, however. The income tax you pay on your earnings is also taken into account, and the type of aid you receive makes a difference. Offsetting student loans with income is beneficial, while earning enough to reduce need-based grants isn’t so great.

If you have questions about how your earnings will affect your future aid, talk with a financial aid officer.

2. Make a Plan for Your Earnings
The amount you need to save from each summer paycheck is determined by your goals. Are you planning to offset specific expenses, such as clothing, books or entertainment, for the school year? Are you planning to earn enough to make interest payments on student loans?

Use your goals to determine a percentage of each paycheck to put into savings. Don’t forget that you may need to use part of each paycheck to cover current expenses, such as work clothes, gas and car insurance, and that you will have taxes and other deductions removed from each check. You may also want to plan on spending a little each month on summer entertainment as well.

3. Simplify Your Saving
It’s often tempting to use cash in hand, and sometimes students find they’ve spent the money they intended to save without really thinking about it. Avoid the cash crunch by:

  • Depositing your pay right away. If you have the option to have your check direct-deposited into a checking account, take advantage of it. If not, or if you are paid in cash, deposit it directly after you receive it to avoid unnecessary spending.
  • Automating your savings. Set up an automatic transfer from your checking account to your savings account that corresponds with your pay date. For example, if you are paid by direct deposit every other Friday morning, have an amount equal to the percent of your check you want to save automatically transferred to your savings account on those Friday afternoons. Time the transfer as close to the deposit as you can without risking overdrawing your checking account.

4. Stick to Your Goals
Once school starts in the fall, remember what you worked so hard for over the summer. If you intended to use your summer earnings for books, don’t let the desire for new clothes or evenings out distract you from your goal. If you haven’t already considered it, think about a part-time job during the school year to pay for other items you want or need.

By: Iowa Student Loan