How Do I Know Where To Send Payments

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How Do I Know Where To Send Payments

"Chances are that the interest itself will form a huge chunk of this debt."

How Do I Know Where To Send Payments

How do I know where to send payments?

Before you graduated, left school, or dropped below half time enrollment status, your school should have given you information about who to repay. Also, your loan holder should be listed on your promissory note.

* Youll repay a Federal Perkins Loan to the school that made the loan or to an agency the school hires to service the loan.
* Youll repay a Direct Stafford Loan, or your parents will repay a Direct PLUS Loan, to EDs Direct Loan Servicing Center.
* Generally, youll repay a FFEL Stafford Loan (and your parents will repay a FFEL PLUS Loan) to the lender that made the loan. Sometimes a loan holder contracts with a loan servicer to administer student loans. If thats the case, youll make loan payments to the servicer. Also, FFEL Stafford Loans are often sold to another lender or secondary market. The loan holder is required to notify you by mail if your loan is sold and give you the name and address of the new loan holder. Even if your loan is soldwhich is a common practiceyour rights, responsibilities, and repayment obligation wont change.

Generally, youll receive billing statements or a coupon book from your loan holder. But, youll have to make all payments on time even if you dont receive these.

In case you did not know, you (as a parent) can consolidate loans for more than one person under one loan, provided the loans are for your children.

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