Repaying Your Student Loan

Learn more about your responsibilities as a borrower and about the exit loan counseling requirement.

• Know your student loan repayment obligation.

  A student loan is a serious and important financial obligation, and you must repay your loan.

  • You are required to repay your loan(s) regardless of whether you complete your education, are able to find employment, or are satisfied with your education.
  • Repayment is required according to the terms of your promissory note.
  • You must provide your lender with corrections to your name, address, references, Social Security number, and driver's license information.
  • You may be able to apply for deferment, forbearance, or cancellation of your loan payments. (Refer to your promissory note.)
  • If you do not apply for deferment or cancellation, you must pay your loan(s) as scheduled.
  • You can prepay all or part of your loan(s) at any time without penalty.
  • You may be eligible to defer repayment if you go to another institution of higher education. Contact Student Business Services or the University's billing agent, Affiliated Computer Services (ACS), (866) 575-4517.

• Complete your exit loan counseling.

  If you are a student loan borrower, federal regulation requires you to complete exit loan counseling.

  • You should complete exit loan counseling when you:
    • Graduate
    • Fall below half-time student status (less than six units)
    • Withdraw from classes
    • Do not attend for a quarter
    • Have a Long Term Loan Documentation (LCOD) hold on your student account
  • You satisfy the requirement when you:
    • Understand your rights and responsibilities as a borrower (information provided below) and complete your online exit loan counseling: for undergraduates or graduates

• Begin your student loan repayment.

  You must start repayment after the grace period ends.

  • The grace period begins when you:
    • Graduate
    • Fall below half-time student status (less than six units)
    • Withdraw from classes
    • Do not attend for a quarter
  • The length of the grace period depends on the lender:
    • Unsubsidized Stafford loan: Six months
    • Subsidized Stafford loan: Six months
    • Perkins loan: Nine months

• Apply for loan deferment, cancellation, or consolidation (if necessary).

  The information below pertains specifically to Perkins and Institutional loan borrowers unless stated otherwise.

  • Deferment is a period of time during repayment in which the borrower, upon meeting certain conditions, is not required to make payments of loan principal and sometimes interest. Deferment of your Perkins or Institutional loan may be granted if:
    • you are enrolled at least half time at an accredited institution
    • you are a member of the armed forces or various public or private volunteer organizations (e.g., Peace Corps or VISTA)
    • you are in advanced professional training
    Get deferment forms for Perkins borrowers at the ACS Web site.
  • Cancellation of your obligation to repay your Perkins loan may be granted if you are employed in:
    • Teaching
    • Early intervention services
    • Law enforcement or corrections
    • Nursing or medical technician position
    • Child or family services
    • Head Start
    • Military
    All loans can be discharged for total and permanant disability and death.
  • Consolidation combines all of your federal loans into one loan.
    • You must be in your grace period or repayment period to apply for consolidation.
    • Your interest rate will be lower if you consolidate during the grace period.
    • Your interest rate will be fixed for the length of the loan.
    • You may include your Perkins loan, but once consolidated, you are no longer eligible for the cancellation options listed on your Perkins promissory note. And, under consolidation interest will accrue similar to an unsubsidized loan. To request a copy of your Perkins promissory note, e-mail Student Business Services, or call (858) 822-4727.

    See important loan consolidation information for graduating borrowers.

    Consolidation information for all borrowers is available at the EDFUND and Federal Student Aid Web sites.

    For more specific information, read your promissory note(s), or contact your lender.

• Work with your lender.

  • Find your lender:
    • See a list of all your federal loans at the National Student Loan Data System.
    • Find your lender's toll-free phone number at the Stafford lender contact list.
    Perkins or Institutional loan borrowers: Your lender is UCSD, and the billing servicer is Affiliated Computer Services (ACS). Visit the ACS Web site, or call (866) 575-4517 for more information.
  • Resolve a dispute with your lender:
    • If you are unable to resolve a dispute with your lender concerning the terms of your student loan, you may contact the Department of Education Ombudsman
      830 First Street, NE
      Fourth Floor
      Washington, DC 20202-5144
      (877) 557-2575

• Don't fail to repay your student loan(s).

  Note: If you cannot meet the repayment schedule on your University-based student loan(s), contact the Loan Administration Office, (858) 822-4727.

  If you are delinquent on your student loan(s):

  • You may have to pay late fees, collection costs, and/or interest in addition to the loan amount.
  • Your credit rating may be adversely affected.
  • Your state income tax refund could be withheld.
  • Your wages may be garnished.
  • You may be ineligible for further student aid, deferments, forbearances, and loan consolidation.
  Addendum to Perkins Loan borrowers