Federal regulations require that, as a Federal Direct Loan borrower, you be reminded of important responsibilities regarding loan repayment once you withdraw, graduate, or drop below half-time attendance (even if you plan to transfer to another school). One of a borrower’s obligations is to participate in an exit counseling session that provides information about a borrower’s rights and responsibilities, and loan repayment and debt management strategies.
Please read carefully the information in the Exit Counseling Guide for Federal Student Loan Borrowers. Then, if you have not already done so, COMPLETE THE ONLINE EXIT COUNSELING SESSION. The Office of Student Financial Aid will receive an automatic confirmation that you have completed your session successfully.
The National Student Loan Data System (NSLDS) identifies your loan servicer, which will assist you with questions regarding your loan. If you have a problem with a federal student loan, you should contact your loan servicer to try to resolve the problem. If you are unable to resolve the problem on your own, you may contact the Federal Student Aid (FSA) Ombudsman for assistance. The FSA Ombudsman works with federal student loan borrowers to resolve loan disputes or problems from an impartial, independent viewpoint. You can reach the FSA Ombudsman at: Federal Student Aid (FSA) Ombudsman; toll-free telephone 877.557.2575; fax 606.396.4821; or by mail to U.S. Department of Education, FSA Ombudsman, PO Box 1843, Monticello, KY 42633.
Failure to repay your loan within the terms of the loan agreement will result in default. Borrowers who default on their Federal Direct Loans may face the following consequences (among others): (1) your loan holder may accelerate the loan (i.e., demand the entire balance of the loan in one payment); (2) the agency that guaranteed the loan may report the default to a credit bureau, which will affect your credit rating and your ability to borrow from any source in the future; (3) you will be ineligible to receive any additional federal student financial aid, and will no longer be eligible for any deferment provisions for your defaulted loan; (4) your future federal and state income tax refunds may be seized; (5) your future wages may be garnished; (6) you may face litigation; (7) you may be charged for the loan holder’s or guarantor’s collection expenses, including attorney’s fees.
Your student loan payment is a “fixed cost,” like rent or utilities. The average cumulative Federal Direct Loan indebtedness for all Reynolda Campus students at Wake Forest graduating in May 2018 was $37,246, resulting in an estimated monthly repayment of $391 (depending on interest rate and repayment incentives) for ten years. In planning to repay your student loan, you should develop a realistic monthly budget based on your expected minimum salary. An online loan payment calculator to compute an estimate of the size of your monthly loan payments and the annual salary required to manage them without too much financial difficulty is available at Federal Student Aid Repayment Estimator
You should inform your loan servicer if you are having difficulty in making loan payments. Always communicate with your loan servicer in writing and keep copies of all communication to and from the loan servicer. You are responsible for making payments on your loan even if you have not received a payment notice from the loan servicer, and for keeping the loan servicer informed of changes in your enrollment status, permanent address, name, and/or social security number.
A partial listing of deferment options includes service in the Peace Corps, under the Domestic Volunteer Service Act of 1973, and comparable volunteer service for a tax-exempt organization of demonstrated effectiveness in the field of community service. Others are listed in the accompanying brochure. If you completed a Master Promissory Note and continue your education within the next ten years, you may be able to use the same promissory note then. Contact that school’s financial aid office for details.
Please contact the Office of Student Financial Aid if you have questions about the information on this page or if you desire additional counseling.