Three federal laws enacted in the last two years, the Higher Education Opportunity Act, the Ensuring Continued Access to Student Loans Act, and the College Cost Reduction and Access Act, made changes to the Higher Education Act and, subsequently, regulations that govern student loans.

These changes may have an impact on the terms and conditions of your existing student loans. If you have questions associated with any of these changes, please call us at 888-272-5543.

NSLDS reporting notification

Information about your loan(s) will be submitted to the National Student Loan Data System (NSLDS). Information in NSLDS is accessible to schools, lenders, and guarantors for specific purposes as authorized by the Department of Education. For more information please visit www.nslds.ed.gov.

Stafford loan amounts

Stafford loan interest rates

Different fixed interest rates may apply to separate Federal Stafford loans made under an MPN depending on the date of the first disbursement, whether the borrower is a graduate or undergraduate student, and whether the loan is subsidized by the federal government.

Servicemembers Civil Relief Act (SCRA)

Effective as of August 14, 2008, if you qualify under the Servicemembers Civil Relief Act, the interest rate on your Federal Family Education Loan Program (FFELP) loan(s) obtained before military service may be limited to 6% during your military service. To receive this benefit you must contact your loan holder for information about the documentation you must provide to qualilfy.

Military service deferment

If you are serving on active duty or performing qualifying National Guard duty during a war or other military operation or national emergency, and if you are serving on or after October 1, 2007, you may receive military service deferment and an additional 180-day deferment following that military service.

Active duty student deferment

If you are a member of the National Guard or other reserve component of the U.S. Armed Forces (current or retired) and you are called or ordered to active duty while enrolled at least half time at an eligible school, or within six months of enrollment, you are eligible for a deferment during the 13 months following the conclusion of your active duty service or until the date you re-enroll in school, whichever is earlier.

No accrual of interest for Active Duty Service members
You may consolidate your FFELP loan(s) first disbursed on or after October 1, 2008 (including Federal Consolidation loans that repaid FFELP or Direct Loan Program loan(s) made on or after that date) into the Direct Loan Program to take advantage of the no-accrual-of-interest benefit for active duty service members for up to 60 months during periods of qualifying active duty military service.

PLUS loan in-school deferment

You may defer repayment while you are enrolled at least half time at an eligible school. For Graduate PLUS loans first disbursed on or after July 1, 2008, you also may defer repayment during a six-month period after you cease to be enrolled at least half time. If you are a Parent PLUS borrower, you may request that repayment of loans first disbursed on or after July 1, 2008 be deferred while the student for whom you obtained the loan is enrolled at least half time and for the six-month period after the student ceases to be enrolled at least half time.

Income-based repayment

Effective July 1, 2009, you may choose an income-based repayment (IBR) plan under which your monthly payment is based on your income during any period when you meet the definition of experiencing a partial financial hardship. Federal Stafford loans, Federal PLUS loans (excluding Parent PLUS), and Federal Consolidation loans (unless the Consolidation loan included a Parent PLUS loan) are eligible for IBR. To change your repayment plan, you must contact your loan holder. To see if you qualify for IBR, visit our online eligibility tool at www.salliemae.com/ibr.

Consumer reporting agency notification

Information about your loan will be reported to national consumer reporting agencies (formerly referred to as national credit bureaus).

Loan forgiveness for public service employees program

You may consolidate your FFELP loan(s) into the Direct Loan Program and take advantage of the public service loan forgiveness program. This program provides for the cancellation of the remaining balance due on eligible Federal Direct Loan Program loans after 120 payments are made on those loans under certain repayment plans while you are enrolled in certain public service jobs. Only payments made after October 1, 2007 can be counted toward the 120-payment requirement.