UCLA Loan Services is providing you this information to help you in the successful management of your educational loan debt. Look through your various loan/debt reports; analyze your spending habits. Create a budget that focuses on need, rather than want. Borrow the minimum now, so that you are not overburdened in repayment. When you accept loans, you accept the responsibility that comes with them—a financial obligation that must be repaid. When managing your loans, keep the following in mind:
- Keep copies of all documents concerning any loan (e.g. promissory note) until it is fully repaid
- Stay in contact with your lender and give notice immediately if you:
· change your name
· change your address
· change your enrollment status· are eligible for a deferment (e.g. student or unemployment, etc.)
· are eligible for a forbearance (e.g. financial hardship)
· are eligible for a cancellation (e.g. teaching or military service, etc.)· make a late payment
· cannot make a payment
· have a question - Students who repay their loans build a good credit rating as outstanding loan balances are reported annually (at minimum) to a national credit bureau
- Students who default receive a negative credit rating that may remain with them even after repaying their loans
- Defaulting on a student loan has severe consequences that may include:
· collection agency assignment
· withholding your tax refunds
· initiation of legal action against you
· loss of eligibility for future financial aid
· withholding your transcripts
· garnishing your wages
In truth, loan repayment isn’t that far off, so plan for it now. If necessary, contact the Loan Services unit and/or your billing servicers for help. Remember: Stafford Loans, Direct Loans, Perkins Loans, UC/campus loans, and any other loan through a bank and lending institution will be billed to you separately, so open and read all mail. If your lender does not contact you within two weeks of dropping below enrollment minimums, make contact and request a repayment schedule - do not wait.
You are legally responsible for the repayment of your loan and must stay in contact with your lenders, updating any change in your location or status. In repayment, there is never a ‘nowhere-to-turn’ situation. The more promptly you act when problems arise, the easier it is to solve them.