After you leave La Salle University, your federal loan grace period will begin. This means that you will receive information for repaying your federal loans, either through payments, deferment, or consolidation.
Federal student loans that fall into default as a result of past-due or negligent payments can have serious consequences, including:
- Immediate repayment of entire loan balance
- Garnished wages
- Additional fees
- Damaged credit rating
- Ineligibility for loan deferments or additional student aid
Unlike other consumer loans, student loans usually can’t be discharged through bankruptcy and will likely stay with the borrowers for the rest of their lives. If you have difficulty making loan payments, you should contact the servicer as soon as possible to see what options may be available to you.
Borrowers who try to avoid their servicer can lose out on some readily available repayment benefits and options. Some of the options borrowers can take advantage of to avoid default are: alternative repayment plans to lower monthly payments (these can sometimes drive up the total cost of the loan), loan forgiveness and discharge programs that can cancel loan obligations, and deferments and forbearances to temporarily suspend monthly loan payments.
Army Reserve Student Loan Repayment Program
The Army Reserve Student Loan Repayment Program is a Selected Reserve (SELRES) incentive program that helps USAR Soldiers pay off student loans. When used properly, this program allows Soldiers to greatly reduce educational debts. The SLRP is part of a Soldiers enlistment or reenlistment contract.
Each year, the Army will pay up to 15 percent of Soldier’s loan(s). In most cases interest may also be paid however there are set maximum and minimum SLRP payments.
Useful Links for your Federal Loans