December 25, 2024

Repaying student loans can be a success

The most daunting aspect of college isn’t the difficulty of the classes or the sudden need to be independent – it’s the debt that follows.

Here at Capital, however, that debt is well below the national average of $30,100. The typical student at Capital graduates with $25,859 owed, based on Federal Direct Subsidized and Unsubsidized Loans and Federal Perkins Loans.

“There are several repayment options available that are designed to meet the individual needs of borrowers,” John Brown, director of financial aid, said.

Depending on the repayment plan that the student chooses, it generally takes 10 to 25 years to repay his or her loans.

Brown said that students may also receive deferments or forbearances (temporary beaks in payment) to assist in the repayment process, as well as change the amount of time it takes to repay the loans. When it comes to average monthly payment, however, that amount is difficult to determine as it differs by student.

“Varying factors such as the amount borrowed, accrued interest and the repayment plan the borrower chooses will impact that number,” Brown said. “Typically, the plan that has the highest monthly payment is with the Standard Repayment Plan, but it pays the loan off the quickest.”

The financial aid office is available to students, both before and after graduation, for help regarding payment of their loans.

“Financial difficulties can come in many forms that affect whether or not a student can persist in school and graduate,” Brown said. “[The financial aid office] will do all that we can to assist students in getting the aid they are eligible for to pay for their education.”

But amidst all the discouraging numbers and scary loan talk, there is some good news hidden below the surface. Whether a student graduates, leaves school, or drops below half-time enrollment, they will have a six-month grace period before beginning repayment.

“During this period, they’ll receive repayment information from their loan servicer, and they’ll be notified of their first payment due date,” Brown said.

Brown also advises that students use those six months to prepare for repayment rather than look at it as a sudden break from responsibility.

“During this time, the loan servicer will be communicating with the borrower to select a payment plan and provide required notifications,” he said. “This is a great opportunity to learn what you need to know to be successful in repayment.”

Author

  • Sydney Deibert

    Sydney was the managing editor at the Chimes for her junior and senior years after working as a staff reporter during her first year at Capital in 2017. Sydney graduated in 2020 with a degree in professional writing and journalism. Some of her favorite things are cold brew, books about dragons, horror films, and her cat, Sterling.

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