Understanding the repayment options for your student loans can go a long way toward building a solid financial foundation. Remember, student loans are real loans, just like car loans or mortgages. You must repay a student loan even if your financial circumstances become difficult. Your student loans cannot be canceled because you didn't get the job you expected or because you didn't complete your education. The path to financial well-being is to borrow conservatively; manage your debt effectively and repay your loans wisely.
Debt Management
Establishing a budget and managing your debt isn't easy, but it's the best way to be in control of your finances and make sure you have the funds available to pay your expenses. Use a Budget Calculator and a Loan Repayment Plan to make the whole process easier.
USD Public Interest Law Loan Repayment Assistance Program
The importance of public interest law practice in our society cannot be overstated. However, a commitment of public interest training is partially mooted by a tuition-loan burden which inhibits postgraduate practice to benefit society. The USD School of Law created a Loan Assistance Repayment Program (LRAP) to assist students choosing public interest law as a career in repaying their law school loans.
What to Know about Repaying your Loans
Federal student loans, including Federal Direct loans carry a 6-month grace period. This means that payment may not be required until 6 months after graduation. Be aware that you are only eligible for one grace period; therefore, if you took a leave of absence and used it, it may not be available. The U.S. Department of Education may grant a deferment on the Graduate PLUS loan payment to align with the Direct Loan payment deadline. Contact your lender or the Direct Loan Program to inquire about this option.
The USD Law Access Loan and the USD Tuition Credit Loan carry a 12-month grace period. Any questions regarding these two types of loans may be addressed to the University of San Diego Loan Administration department.
Federal student loans provide a variety of repayment options to suit your needs. A list of the options is provided by the Direct Loan website. Here are some of our recommended options, several of which will allow you to make loan payments that are calculated based on your actual income or skip a payment altogether if you are experiencing extreme financial hardship:
The College Cost Reduction and Access Act of 2007 (Pub.L.110-84) created a new program for student loan borrowers, the Income Based Repayment option, which becomes available starting July 1, 2009. This program allows graduates with high levels of debt and lower incomes for substantially reduced monthly payments and includes a forgiveness provision of any remaining balances in 10 years for employees in the public interest or public service arenas or after 25 years for everyone else. Be aware that it is general practice to place graduates in the 10-year standard repayment plan. You must contact your lender or the Direct Loan Servicing Center to request a different plan.
Currently, there are a few federal options for public interest attorneys to receive help with their educational debt. Some public interest attorneys, however, may qualify for some federal loan repayment assistance. Public interest attorneys are also encouraged to apply for USD’s Loan Repayment Assistance Program.
In addition to the grace period, borrowers of federal loans can qualify for a period of deferment and/or forbearance of all payments for up to 3 years (on 12 month increments) provided they meet criteria for "partial economic hardship." If you are unable to find employment and you have begun your repayment period, we encourage you to contact your loan holder and request relief via a deferment or forbearance.
For more information, please contact your lender, the financial aid office or visit the Direct Loan website.
Useful Resources
Our team has put together a list of resources that can help you better understand the loan repayment process. Students are also encouraged to reach out to the financial aid team with questions about repaying student loans.
Get in Touch
Can’t find the information you are looking for on our website, or have questions about any information? Email our financial aid team at lawaid@sandiego.edu and we will get back to you as quickly as possible.