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2000 EXIT HANDBOOK

CHAPTER THREE

FEDERAL SUPPLEMENTAL LOANS FOR STUDENTS (FSLS)

GRACE PERIOD

  • None.

SETTING UP REPAYMENT

    • Borrower’s responsibility to contact lender/servicer immediately upon graduation or withdrawal from school.

    • Repayment alignment (also referred to as an Administrative Forbearance) is made available to those borrowers who wish to have their first payment of FSLS and Federal Stafford occur at the same time. Contact your lender for further information.

RATES AND REPAYMENT

Interest may accrue and/or compound while the student is in attendance. Prior to 10/01/92 FSLS loans were at a fixed rate 12% unless refinanced to the new FSLS variable interest rate. FSLS taken after 10/01/92 are at a variable rate which adjust annually and has a cap of 11%.

BORROWER’S FAILURE TO SET REPAYMENT

Any borrower who fails to set up a repayment schedule is responsible for accrued interest from that point until conversion to installment is complete.

REPAYMENT PERIOD

    • Repayment period begins immediately after graduation or separation from school.

    • Lender/servicer must allow at least 5 years‚ but no more than 10 years‚ provided payment does not go below minimum payment (excludes any period of deferment or forbearance).

DEFERMENT PROVISIONS }

FORBEARANCE } See Chapter IV

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