Frequently Asked Questions
For Graduating 3Ls Entering Loan Repayment
The best information about your federal student loans can be found on StudentLoans.gov, which will provide information on your loan servicer(s) and loan amount(s). Use the “Repayment Estimator” on StudentLoans.gov to compare repayment plans; or, For non-federal student loan debt, check annualcreditreport.com.
Many federal loans have a 6-month grace period following graduation. Examples include: loans borrowed at Syracuse Law, Graduate PLUS Loans borrowed after 7/1/08, and undergraduate federal loans that did not go into repayment prior to law school). Loans that DO NOT have a 6-month grace period following graduation include: Federal Consolidation Loans, Federal Student Loan debt that was in repayment prior to the student attending law school, and Graduate PLUS Loans borrowed prior to July 1, 2008.
Deferments are an entitlement if you meet the requirements as specified in the promissory note and provide the necessary documentation to the loan holder/servicer. Requirements can be any of the following:
Forbearance is an agreement between you and your loan holder/servicer that allows for a temporary postponement or reduction of payments due to one of the following circumstances:
Once borrowers leave their “In-School” status, they may combine multiple federal student loans into one new loan with a fixed interest rate (based on the weighted average interest rate of the loans that are being consolidated). Federal student loan consolidation is available through the William D. Ford Direct Loan program. Consolidation is NOT the best choice for every borrower--it is a “forever” decision that cannot be reversed! Before making this decision, we recommend either contacting the Financial Aid Office or consulting with a counselor through AccessConnex by AccessLex at AccessLex.org.
If you do choose to consolidate, apply online at https://studentloans.gov
Repayment Plan | Payment Structure | Maximum Payment Period | Additional Features |
---|---|---|---|
Standard | Fixed amount | 10 Years | • May be highest monthly payment • May be lowest total interest paid • No penalty for pre-payment |
Graduated | Tiered amount | 10 Years | • Interest-only payments initially • Payments increase incrementally |
Extended | Fixed or Tiered amount | 25 Years | • Lowest initial payment without considering income • Direct Loan debt must be less than $30,000 |
For Income-Based Repayment Plans, payment is adjusted annually based on household income, household size, federal poverty guideline, and state of residence. Negative amortization is allowed. Payment amount won’t exceed 10 year Standard Plan amount. Loan balance forgiven at end of repayment period. Amount forgiven may be subject to income tax liability.
Repayment Plan | Payment Structure | Maximum Payment Period |
---|---|---|
Income-Based Repayment (IBR) for new borrowers on or after 7/1/2014 | 10% of discretionary income | 20 Years |
IBR for those who are not new borrowers | 15% of discretionary income | 25 Years |
Pay As You Earn (PAYE) for new borrowers as of 10/1/07 who have Direct Loan Debt on or after 10/1/11 | 10% of discretionary income | 20 Years |
Revised Pay As You Earn (REPAYE) | 10% of discretionary income | 25 Years (if graduate debt) |
The PSLF Program was developed to encourage borrowers to enter into full-time public service employment. Eligible loans may be forgiven after 120 months of qualifying payments while the borrower works in an eligible public service position.
Only Federal Direct Loans are eligible (including Federal Direct Consolidation Loans).
You may be eligible to deduct a portion of the student loan interest you pay on your federal income tax return. Student loan interest is interest you paid during the year on a qualified student loan. Eligibility for the student loan interest deduction is based on your adjusted gross income. The student loan interest deduction is taken as an adjustment to income, meaning, you are not required to itemize deductions on Form 1040’s Schedule A. Please go to the IRS website for more information on Tax Benefits for Education.
Federal student loans may be discharged if you become totally and permanently disabled or if you die. Discharge will also occur if a loan was falsely certified in your name as a result of identity theft. Review this webpage for more details on loan discharge.