Student Loan Repayment

It’s important to think about how you will repay your student loans after graduation. Here are some helpful resources as you consider which repayment plan is right for you and how to avoid student loan scams.

If you borrowed a Federal Direct Loan:

*Please note: For alumni who were in repayment prior to March 2020, or who graduated after March 2020 and before May 2023, the student loan payment pause has expired and payments will resume October 2023.*

• Helpful resources to prepare for student loan repayment
• Federal Student Aid guidelines for repaying student loans for the first time
• Federal Student Aid guidelines for borrowers restarting payments
• Student loan repayment toolkit

Plan for Repayment

Anytime you finish a program, leave the university, or are no longer enrolled at least half-time, exit counseling is required. At this time, your loans will enter into a six-month grace period during which payments are not required.  However, if you have previously used all or a portion of your grace period, you may fall into repayment sooner. Following your grace period, you must either enter repayment or apply for a deferment or forbearance in order to avoid defaulting on your loan.

• Be sure to update your contact information on studentaid.gov.
• Compare repayment plans with the loan simulator.
  • Information on the new SAVE income-driven repayment plan
• Automate your payments and sign up for auto debit to ensure you never miss a payment.
• If you are having difficulty repaying your loans, contact your loan servicer.
• Avoid scams: There are no fees charged for consolidating your federal student loans or selecting or changing your payment plan. If you are contacted by someone offering these services for a fee, you are not dealing with a federal loan servicer. You should never pay for these fees.
• Avoid defaulting or becoming delinquent on your loans. If you default or become delinquent, your loan servicer will report your status to credit bureaus.  

For more information on how to manage your student loans, watch this video from Federal Student Aid.

If you borrowed an institutional loan from Valparaiso University:

Information regarding repayment for institutional loans can be found at ECSI’s website.

Loan Consolidation and Refinancing

Loan Consolidation

A Consolidation Loan allows you to combine all of your federal student loans into a single loan.  Consolidation loans have a fixed interest rate based on the weighted average of the interest rates of the loans being consolidated.  Consolidation for student loans is only available after the student is no longer enrolled.  Remember that although consolidation can simplify loan repayment it can increase the total cost of repaying your loans.  For more information visit studentaid.gov or call 1-800-557-7392.

Refinancing 101

Refi loans combine all your private student loans and possibly federal student loans into one loan and one payment with an interest rate based on your current situation.  This option may reduce the amount you pay and/or provide a more manageable monthly payment amount.

Please Note: If you combine federal loans with private loans, make sure you clearly understand any impact to losing federal loan repayment benefits.

Important information as you consider refinancing:

• Identify all your current loans (lender, servicer, type of loan, type of interest rate, borrower benefits, repayment options, etc.)
• Understand that you may need a cosigner to refinance your loans
• Refinancing is not always the best solution, so review the possible rates and overall costs to determine if this is the right choice for you.

Listed below is a tool that shows lenders who offer refinancing options.

• INvested Refi Loan Marketplace

Other Loan Resources

• How to Be a Responsible Borrower
  • Provides information regarding planning ahead for future borrowing
• Studentaid.gov  This is the main site for managing your Federal Direct Loans.
  • Check your account
  • complete entrance counseling and promissory note
  • repayment options
  • loan forgiveness
  • loan cancellation
  • You must have your FSA ID available to access your account.
• Federal Perkins Loan: The Perkins Loan is no longer available as a loan resource. However, if you have a Perkins Loan,  repayment information can be found here.
• National Student Loan Data System  The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for student aid. (The Department of Education is currently assigning Federal Direct Loans to 11 companies with whom it has loan servicing contracts: Apsire Resources, Inc., ESA EdFinancial. FedLoan Servicing (PHEAA), Granite State – GSMR, Great Lakes Educational Loan Services, MOHELA, Navient (Sallie Mae), Nelnet, OSLA and VSAC Fed Loans.)  NSLDS Student Access provides recipients access to inquire about their Title IV loans and/or Pell grant data.  Use this site to find out who your federal loan servicer is and how to contact them, and to obtain information about your outstanding loan balance and loan status.
• National Student Loan Clearinghouse
  • Use your VU e-mail log-in information to access your account
  • View the enrollment information VU has provided to the loan clearinghouse.
  • View the student loan deferment notification the clearinghouse has provided to your lenders.
  • View/Print the proof of enrollment or enrollment certificate you may need to provide to your health insurer and other providers of student services or products.
  • View specific information about your student loans using Loan Locator.
• Budget Calculator – The Budget Calculator determines expenses and income in order to create a budget for college. To review various payments plans and the amount you may pay after college check out Repayment Plans and Calculators.