Loan Repayment FAQs
How do I find out what loans I took out while I attended school at Biola?
It's a good idea to keep track of your loans as you take them out each semester, to have a running record of how much money you owe and to whom. Different types of loans are as follows:
- Federal Loans - for a listing of all of your Federal Loans (Stafford, Plus, Direct, FFEL, etc), go to www.nslds.ed.gov.
- Biola-held loans – for information about Biola-held loans (Perkins, Nursing, Biola, FAS, Hermann, Yates), please contact Biola’s loan servicing agency, ACS, at www.acs-education.com or at (800) 826-4470. Or contact Biola’s Accounting Office at (562) 903-4760 or via e-mail at loan.specialist@biola.edu
- Private Loans – contact the lender/bank holding the loan.
- Still not sure? – Contact the Financial Aid office at finaid@biola.edu or (562) 903-4742.
What is the difference between a loan and a grant?
Loans are legal obligations which must be repaid. Grants are a type of gift aid which does not need to be repaid.
When will I need to start repaying my loans?
Most loans have a grace period that begins when you drop below half-time, depart, or graduate. At the end of the grace period, repayment begins. Federal loans have a six month grace period, and Biola-held Loans have a nine month grace period. The repayment period will vary depending on the loan type and amount.
Please remember to inform all of your lenders if you move or change phone numbers or e-mail addresses. This will help assure that you receive timely notifications about your loans and is an important way to protect against delinquency.
Will I make all of my payments to the same place?
Many students take out multiple loans and/or loan types, in which case there will be various loan payments to keep track of. For ease of managing repayment, you may want to consider consolidation once you’re through with school.
What is consolidation and is it a good idea?
The federal government offers consolidation for borrowers who have taken out multiple federal loans. With consolidation, multiple loans are combined into one loan with one monthly payment. The benefits of consolidation are ease of management, and usually a lower monthly payment. Go to www.loanconsolidation.ed.gov for more information on federal consolidation.
If you have a loan with cancellation benefits, you should first consider if you will qualify for cancellation before consolidating this loan type (i.e., the Perkins loan is eligible for cancellation over a period of time when performing certain kinds of public service). This benefit is lost when a Perkins Loan is included in a Direct Consolidation Loan.
What if I don't have a job, or my income is too low to afford loan payments?
Under certain circumstances, you may qualify for a deferment or forbearance that will allow you to temporarily postpone making loan payments. Receiving a deferment or forbearance is not automatic. You must apply with each lender and continue making payments until you have been notified that your request has been granted. Otherwise, you will become delinquent and may default on your loan.
For more information about deferment options on Federal loans such as Staffords and FFEL loans, go to www.studentloans.gov/myDirectLoan/index.action and look under managing repayment.
To apply for a deferment or forbearance on a Federal Perkins or Nursing loan held by Biola, download the form at www.acs-education.com or call ACS, at (800) 826-4470 during Eastern Standard business hours, or contact the Loan Specialist in Biola’s Accounting office. Other Biola-held loan types are only deferrable while you are attending Biola at least half-time.
What happens if I don't pay my loans off or fall behind on my payments?
Depending on the stage of delinquency, here are some of the potential consequences:
- It will negatively affect your credit score
- Late fees and/or collection costs may be added
- Deferments will no longer be available
- Loan may be assigned to a collection agency
- Wages and/or tax refunds may be garnished
- Difficulty getting future loans for a car, house, or school
What if I have other general loan questions?
Contact the Financial Aid office at finaid@biola.edu or (562) 903-4742.