Loan Repayment
For additional information about loan repayment and federally sponsored relief programs visit the studentaid.gov website. For inquiries or to update your address information, email borrower@gregorybgallagher.com or visit http://heartland.ecsi.net/.
Loan Repayment Frequently Asked Questions
Student loans are a type of loan taken out to cover the costs of a college or postgraduate education.
There are three phases to student loans:
Phase 1 (Enrollment): As long as you are a part-time or more student at a recognized school, you are enrolled. The loans are in an “in school” deferment status. No payments are due. Interest may or may not be accruing during this time, depending on whether they are subsidized or unsubsidized.
Phase 2 (Grace Period): During your grace period, there are no payments due. You can use this time to prepare to begin making payments. Interest may or may not be accruing during this time, depending on whether they are subsidized or unsubsidized.
Phase 3 (Repayment): After the grace period ends, you begin to make monthly payments on your student loans. The loans remain in this status until you pay them off (or death or a qualifying event, such as a permanent disability).
There are a number of different payment plans:
- Standard payment plan
- Extended payment plan
- Graduated payment plan
- Extended/graduated payment plan
- Income-Driven Repayment (IDR) plan
The standard payment plan is the plan you are enrolled in by default. The standard bill is the amount of money that you are expected to pay every month, including principal and interest, in order to pay the loan off in 10 years, the stated time period in the Master Promissory Note (MPN).
| Total Debt You Owe | Approximate Monthly Bill with Standard Payment Plan* |
|---|---|
| $100,000 | $1,000 |
| $75,000 | $750 |
| $50,000 | $500 |
| $25,000 | $250 |
*May vary due to changes in interest rates.
The extended payment plan lengthens the amount of years it takes to pay off your loan from 10 years to 25 years, but lowers your monthly payment amount. While this may be a helpful option, borrowers with this plan end up paying a lot more in interest over the life of the loan. You must have over $30,000 in debt to pursue this option. The extended payment plan does not qualify for loan forgiveness.
The graduated payment plan has a lower initial payment amount, with the amount gradually increasing, usually every two years or so. Borrowers who select this plan will have substantially higher payments toward the end of the plan. Borrowers complete their payments in 10 years. The graduated payment plan does not qualify for loan forgiveness.
The extended/graduated payment plan is a combination of both the extended payment plan and the graduated payment plan. The extended/graduated payment plan does not qualify for loan forgiveness.
Income-Driven Repayment (IDR) plans are programs that allow borrowers to make lower payments based on their Adjusted Gross Income (AGI) and family size. Payments are calculated using a formula. Each program has its own advantages and disadvantages as well as eligibility requirements, so you’ll want to read about each one and talk to your servicer about which may work best for you. The IDR plans are as follows:
ICR Income-Contingent Repayment (ICR): Based on 20% of discretionary income; has forgiveness potential; some subsidized interest may be paid for you by the government for up to 3 years
Income-Based Repayment (IBR): Usually based on 15% or 10% of discretionary income; has forgiveness potential; some subsidized interest may be paid for you by the government for up to 3 years
Pay-As-You-Earn (PAYE): Based on 10% of discretionary income; has forgiveness potential; some subsidized interest may be paid for you by the government for up to 3 years
Revised Pay-As-You-Earn (REPAYE): Based on 10 or 15% of discretionary income; has forgiveness potential; some subsidized interest may be paid for you by the government for up to 3 years as well as some unsubsidized interest. Payments may be higher if your income increases substantially.
New Income-Driven Repayment Plan (Potential): A new plan called Saving on a Valuable Education (SAVE) has been proposed that lowers monthly payment requirements and creates an easier path to loan forgiveness. Details should be forthcoming in the next few months.
In an IDR plan, the government may pay a small portion of your subsidized interest (and potentially unsubsidized interest) for a short period of time; however, since you are making smaller monthly payments your interest is still accumulating. If you are making lower payments and your interest is still accruing, then you are also potentially not making significant progress on your overall loan balance. You should have a plan as to how long you want to remain on an IDR plan. For example, you may be on an IDR plan because you are seeking public service loan forgiveness.
It is important to note that these plans look at your adjusted gross income (AGI) from your tax returns. That means that if you are married filing jointly, your spouse’s income will be factored in. This could cause you to be ineligible. Contact your servicer to see which plan is best for you.
A grace period is a set amount of time after you graduate or drop below half-time enrollment before you must begin repayment on your loan. For most student loans, the grace period is six months, but in some instances, it may be longer.
View the table below for more information.
| Type of Loan | Length of Grace Period | Subsidized or Unsubsidized* | Servicer of Loan |
|---|---|---|---|
| Stafford Loans | 6 months | can be either subsidized or unsubsidized | varies |
| Perkins Loans | 9 months | subsidized | serviced by Heartland ECSI |
| GradPlus Loans | post-enrollment deferment equivalent to 6 months** | unsubsidized | varies |
| BC Nursing Loans*** | 9 months | subsidized | serviced by Heartland ECSI |
| BC Law Loans | 6 months | subsidized | serviced by Heartland ECSI |
*Subsidized loans mean the government pays accruing interest for you during the time you’re enrolled in school and during the grace period. Once you enter repayment, interest begins accruing, and you are responsible for paying it. (One exception to this rule is for subsidized loans disbursed between July 2012 and July 2014, in which interest may accrue during the grace period.) Unsubsidized loans accrue interest continually after disbursement, and you are solely responsible for payment of the interest.
**GradPlus loans technically have no grace period. However, the servicer will give you a six-month post-enrollment deferment, which is the same thing as a grace period. You may have to call your servicer and request the post-enrollment deferment.
***BC Nursing Loans originate from the Department of Health and Human Services. This means that, although it is a federal loan, the loan did not come from the U.S. Department of Education and therefore is not on studentaid.gov or NSLDS.
Note: if you finish school and then attend another federally recognized school to continue your education within the grace period, then you will still retain your full six or nine-month grace period after the next school. However, if you take a semester or a year off before going back to school, you may have used all of your grace period, and it is gone forever. The exception is the Perkins loan which will always give you a six-month grace period after every in-school deferment.
Capitalization is the point at which all of your accrued interest gets added to your principal balance, thereby causing you to pay more interest over the life of a loan, even though your interest rate hasn’t changed.
Capitalization occurs: (1) once your grace period ends; (2) during loan consolidation; (3) at the conclusion of a forbearance; (4) once you are no longer considered to be in a “partial financial hardship” (if you are in an income-driven repayment program).
You have the ability to pay off some or all of the accrued interest on a loan prior to capitalization.
For example, let’s say you borrowed $10,000. Your principal balance is $10,000. The interest rate is 5%. After six months, you have accrued $500 in interest. Your balance is still $10,000, but you now have a separate amount of $500 that has built up every month. You can pay off some or all of the $500 in interest accrual prior to your six-month grace period ending. If you do this, you are still paying 5% in interest on the balance of $10,000.
However, if you do not pay the $500 in interest prior to capitalization, the $500 will capitalize, and your $10,000 loan will now become a $10,500 loan. You will still be accumulating interest every month at a rate of 5%, but it will be 5% of $10,500 instead of 5% of $10,000.
Where you complete your student loan exit interview depends on which type of loan you have.
| Type of Loan | Where You Complete Your Exit Interview |
|---|---|
| Federal Direct student loans (including Stafford loans and GradPlus loans) | |
| BC campus-based loans (including Federal Perkins loans, BC Nursing loans, BC Law loans, or any other BC institutional non-Federal loan) | Heartland ECSI website |
| Massachusetts No-Interest loans | Heartland ECSI website |
Federal Direct Student Loan Exit Interviews
Borrowers of Federal Direct Student Loans, such as Stafford loans or GradPlus loans, must complete an online exit interview at studentaid.gov/exit-counseling. An in-person exit interview is not mandatory.
Once you complete your online exit interview, you will also be notified of who your loan servicing company is. Common Federal services include Great Lakes, Nelnet, AIDVANTAGE, MOHELA, Edfinancial, and OSLA.
If you have any questions about your federal loans, please contact us by emailing borrower@gregorybgallagher.com or calling 617-552-3300.
Boston College Campus-Based Loan Exit Interviews
Borrowers of campus-based loans, such as Federal Perkins loans, BC Nursing Loans, BC Law Loans, or any other BC institutional non-Federal loan, must complete an online exit interview at the Heartland ECSI website. You should receive an email from Heartland ECSI about completing your exit interview.
Note: once this loan enters into repayment, it will be serviced by Heartland ECSI. Be sure your contact information, including your non-BC email address, is correct when you visit the Heartland ECSI website.
Instructions
Complete your exit documents online by going to the website maintained by Educational Computer Systems, Inc. (ECSI), Boston College’s loan servicer.
- Access the http://heartland.ecsi.net link and click on “Sign In” or “Register” at the top of the page.
- Register/create a profile if you have not already done so.
- Sign in with your username and password and click on the Connect an Account button.
- Provide your Heartland Key: (refer to the email you received from Heartland ECSI)
- Complete your exit interview as follows:
- Click the school name
- View Account button
- Documents tab
- Exit Interview
Please log into the ECSI website. After signing in and following the steps and clicking on the documents tab you should see “SIGN AND REVIEW.” This is your exit interview (or if you have multiple loan types, there may be more than one exit to complete).
If you don't see your exit(s), there may be a few reasons:
- What browser are you using? Try Google Chrome or Firefox (avoid using Safari).
- If you have a pop-up blocker, it may not pull up the exit, so make sure pop-ups are not blocked.
- If you are still having trouble, call ECSI at 888-549-3274 for assistance.
Massachusetts No-Interest Loan Exit Interviews
Borrowers of Massachusetts No-Interest loans must complete their exit interviews at the Heartland ECSI website.
You will receive a separate, unique email from ECSI with a specific Heartland KEY to complete the exit for this loan. This KEY would be separate from any other KEY you receive if you have to exit Boston College Perkins, Law, Nursing, or Institutional loans.
These loans will be serviced by ECSI, but they are controlled by the state of Massachusetts (Massachusetts Department of Higher Education), not by Boston College.
Contact
If you need assistance, contact ECSI at 888-549-3274 and inform them you are exiting your Massachusetts no-interest loan (CODE 4F).
Visit www.mass.edu/osfa for more information.
Where to find your loans depends on what type of loan you have.
If you took a Federal Direct Stafford or GradPlus loan, the money came from the Department of Education; however, the Department of Education will not be sending you bills every month. Instead, they employ a servicing company that you will be paying instead. There are several different servicing companies. You can locate your Stafford and GradPlus loan servicers at studentaid.gov.
The following loans are serviced by Heartland ECSI:
- BC Perkins Loans
- BC Law Loans
- BC Nursing Loans
- BC Institutional Loans
- Massachusetts No-Interest Loans (note: these are serviced by ECSI, but controlled by the Massachusetts Department of Higher Education, not Boston College)
It is possible that you may have more than one servicing company, especially if you have attended more than one school.
If you have any loans from other universities that are not Stafford or GradPlus, you should contact your former school to find out who the servicer is. That includes Perkins loans obtained at other schools, which may not use Heartland ECSI as a servicer.
If you have private loans and are unaware of where they are from, the best place to look would be your credit report. You can check your credit report at www.annualcreditreport.com.
Once you have learned who your servicing company is, you should log in and set up an online account on their website. Servicers will usually email you with instructions to do so.
It is extremely important that you do the following:
- Make sure that you have a username and password and can successfully log in to your online account.
- Update all of your contact credentials.
- Phone number: Does your servicer have the correct phone number on file for you? If not, update it, so you can be reached.
- Email: Is your email correct? Does your servicer have an old email account on file or a school email that you may not be taking with you once you leave the university or within 6 months?
- If not, make sure you’ve updated it to an email address where you can be reached.
- Address: Is your address correct? Does your servicer have an old address on file or your school address that you will not be living at once you leave the university or your parents’ address? Make sure you’ve updated it to an address where you can be reached.
- Make sure the servicer is a trusted site on your email. Sometimes a servicer may be sending you emails that are not going into your inbox. Instead, they are being routed to your spam or junk folder because Gmail, Hotmail, Yahoo, or other email platforms do not recognize the sender. If you see emails in spam or junk from your servicer, you will want to accept them as a trusted site, so that all future emails come to your inbox rather than being routed to spam.
- Sign up for E-billing: This is usually much more efficient than having invoices and statements mailed to you. If you are away on travel, you will still be notified. If there is a problem with the mail, you will still receive your billing statement.
When you are in the repayment phase, you must make timely payments, or you risk negative credit reporting by your servicer.
We recommend that you set automatic ACH payments online on your servicer’s website. Automatic monthly payments can be set up by logging into your account and providing payment details (routing and account numbers).
If you set up automatic payments, you’ll never be late on a payment. As long as there is money in your account, the servicer will automatically take your payment on the same day every month.
We do not recommend setting up bill payment services at a bank. The reason for this is that you may think payments from your local bank are automatic and electronic, but it may be that the bank still mails a check to your servicer which opens the door to the payment potentially being late. ACH payments are better for this reason.
If you sign up for automatic ACH payments on your servicer’s website for Stafford and/or GradPlus loans, you will receive a .025% quarter percent interest rate reduction across the board on all of your loans. This offers an incentive to set this up. Note that the interest rate reduction only applies to Stafford and GradPlus servicers, not Perkins or other loans.
Yes. There are no penalties for additional payments or early loan payoff.
You may need to contact your servicer for help if you are trying to set up payments during a grace or deferment period.
Consolidation is the process of combining or merging federal student loans into an entirely new loan. If you consolidate your loans, you will have a fixed rate which is the average of existing interest rates, weighted to the nearest eighth of a percentage point. Consolidation is a federal government process and is 100% free. It takes around 15 minutes to complete online, and you’ll need your FSA ID.
You can only consolidate federal loans. You cannot consolidate federal loans with private loans.
It is important to understand why you are consolidating. Sometimes it makes sense, and sometimes it doesn’t.
One reason is to consolidate Non-Direct Loans, thereby turning them into Direct Loans, which is important for borrowers pursuing Public Service Loan Forgiveness (PSLF). Note you may consolidate a singular loan, by itself, without combining it with other loans, which may be helpful in this situation.
Another reason is if you’d prefer to work with only one servicer, rather than multiple servicing companies.
If you decide to consolidate, you should always consolidate using “.gov” websites such as studentaid.gov. Many predatory companies will try to charge money to consolidate, and they may be refinancing, not consolidating, your loans. Be on the lookout for scams.
If you would like to talk through the possibility of consolidating your loans or have any further questions, email us at borrower@gregorybgallagher.com or call us at 800-294-0294.
Any federal or private loan can be refinanced. Refinancing a loan is done using a private company in order to try to get a lower interest rate.
It is important to note that your monthly payments may be higher and the terms of the loan may be different.
In order to refinance, your income must meet a certain threshold (based on your debt to income ratio). Providers will likely check your credit score, and you may need or want a cosigner.
Once refinanced, the loan becomes a private loan even if it was originally a Federal one. You will lose all Federal benefits such as access to income-driven-repayment, loan forgiveness, loan cancellation, and other discharges, deferment, and forbearance options.
With federal loan consolidation, all loans remain Federal loans and maintain Federal loan benefits. Loan refinancing is different. With loan refinancing, loans become private loans and have no Federal loan benefits.
Think twice before refinancing. If you have any questions, email us at borrower@gregorybgallagher.com or call us at 800-294-0294.
Certain types of loans are eligible for loan forgiveness. If this matches your situation, you may be eligible for loan forgiveness:
- If you work full-time in a public or private nonprofit organization and have Direct Loans, you may qualify for the Public Service Loan Forgiveness program after 120 qualifying payments.
- If you have a Perkins loan and work full-time as a nurse, teacher, social worker, clinician, therapist, public defender or public prosecutor, law enforcement, firefighter, police officer, Peace Corp volunteer, or Americorp Vista program volunteer, you may be eligible for cancellation forgiveness.
- If you are a teacher with a Stafford loan and have worked 5 years in an underserved area or teach in a shortage field such as math or science, you may be eligible for Teacher Loan Forgiveness.
- If you work as a nurse, you may be eligible for a number of nursing loan forgiveness programs.
View the Loan Cancellation and Loan Forgiveness tabs on this page for more information.
Federal student loan payments resume in October 2023. Borrowers will get their billing statement in September or October—at least 21 days before your payment due date—with their payment amount and due date.
Note that if you graduated recently, you will have a 6-month grace period on Federal loans regardless of Covid student loan forbearance ending.
If you graduated in May 2023, you will have a 6-month grace period on your Federal Direct Stafford or GradPlus loans. Your 6-month grace period begins the day after your last class in May and extends into November. During this time, there are no payments due. Your first payment will likely be due in December 2023.
If you graduate in August 2023, you will likewise have a 6-month grace period on Federal Direct Stafford or GradPlus Plus. Your 6-month grace period begins the day after your last class in August and extends into February 2024. During this time, there are no payments due. Your first payment will likely be due in March 2024.
Since these are Federal loans, there are some safety nets built into them.
Forbearance and deferment are two ways to suspend payment on your loans. You can suspend payment for a maximum of 12 months at a time, with, in most cases, a 36-month limit on the life of a loan.
Note that interest accrues every month in forbearance, and interest may or may not accrue every month in a deferment depending on whether or not the loan is subsidized or unsubsidized.
Contact your servicer in order to discuss the steps you need to take to obtain your deferment or forbearance.
If you have missed payments, it never hurts to ask if there is anything that you can do about the missed payments and credit reporting. You may be able to apply for a retroactive forbearance or deferment to get the account to current. You may also ask your servicer about rehabilitating the loan in question. If this is granted, you may be able to rehabilitate your student loan credit by signing an agreement and making a set amount of consecutive on-time payments that would cleanse the loan. This is usually a one-time opportunity, and you will not be able to rehabilitate a loan more than once.
Under the Supreme Court’s ruling, the U.S. Department of Education has been prohibited from implementing the Biden-Harris Administration’s one-time debt relief program.
For more information, visit the One-time Federal Student Loan Debt Relief page on studentaid.gov.
Student Loan Exit Interview
Federal Student Loan Exits
If you borrowed Federal Direct loans (Examples: Stafford or GradPlus loans), your online exit should be completed at studentaid.gov/exit-counseling/.
You will also find the name of your loan servicing company at this website.
BC Campus-Based Loan Exits
If you borrowed a campus-based loan (examples: Nursing loan, Law Loan, Perkins loan), you will be required to complete an online exit on the Heartland ECSI website. You will receive an email from Heartland ECSI with instructions. Note that these loans will also be serviced by Heartland ECSI. Be sure your contact information is correct when you visit the ECSI website and include a non-BC email address.
Questions about Loan Repayment?
If you want to discuss your student loans, please email borrower@gregorybgallagher.com.
Student Loan Exit Interview Zoom Presentation to the BC School of Social Work (April 8, 2021)
All students who are planning to graduate in May who have borrowed Perkins, Nursing, Law School, Graduate PLUS, or Direct Stafford loans while attending Boston College are required to complete an online exit interview prior to leaving the University. Notifications will be emailed in March from Heartland ECSI and will include instructions on how to log in to the Heartland ECSI website to complete the online exit interview.
For those students who have only borrowed a Federal Stafford Loan or Federal Graduate Plus Loan, you do not need to complete an exit interview on the Heartland ECSI website. Instead, you should complete your online exit counseling by visiting the Federal Student Aid website and completing the steps there.
If you have any questions, call the Office of Student Services at 617-552-3300 or 800-294-0294 and ask to speak with a member of the Loan Repayment staff.
Boston College is committed to providing information in a manner that is accessible to all. If you are in need of a printed copy of the material presented on this web page, please contact the Office of Student Services.
Borrowers of Massachusetts No-Interest Loans are required to complete an exit interview prior to Commencement. This may now be completed online. You will receive a letter in March from Heartland ECSI outlining the steps for completion of the online exit interview. You will be asked to log in to the website of Educational Computer Systems, Inc. (ECSI), Mass. DoE's loan servicing company, to complete the exit interview. You will be required to provide family information and personal references. Please be sure to have this information ready when you begin the online exit interview.
If you have any questions about your Massachusetts No-Interest Loan debt or the exit interview process, please contact the Office of Student Services at 800-294-0294 and ask for a member of the Loan staff. Appointments with Loan staff regarding debt counseling may be scheduled by calling the Office of Student Services.
Loan Cancellation
To cancel all or part of a Perkins loan, a borrower must be employed full-time for twelve consecutive months in a qualifying position with a qualifying agency. Specific criteria for each type of cancellation must be met, in addition to providing required documentation requested by the University (copy of license, certification, or registration). The borrower's account must be paid current to the date of eligible employment for cancellation.
- A borrower must file a request for deferment for the expected year of employment. While on deferment, no interest will accrue on the loan, and no payments will be required.
- Upon the completion of twelve consecutive months of full-time qualifying service, the borrower will file a request for cancellation for the previous year and a request for deferment for the following year. A cancellation form must be submitted for each year of eligible employment until the loan is either fully canceled or eligibility requirements are no longer being met. If the borrower changes jobs during the deferment period and is sure that the new position is eligible for loan cancellation, he or she must submit a cancellation form from both the previous and current employers at the end of the deferment.
It takes five years for a Perkins loan to be cancelled in full. The following rates apply to most Cancellations:
- 15% for the first and second years of qualifying service
- 20% for the third and fourth years
- 30% for the final year
Partial Cancellation
Peace Corps volunteers may be eligible to cancel up to 70% of a Perkins loan at the rate of:
- 15% for the first and second years of qualifying service
- 20% for the third and fourth years
Those serving full-time active duty in the Armed Forces may be eligible to cancel up to 50% of a Perkins loan at a rate of 12.5% per year. The borrower must be serving in an area of hostility or imminent danger that qualifies for special pay under Section 310, Title 37 of the U.S. code.
The borrower must fully complete Part 1 of the form. The borrower's employer must complete Part 2 of the form certifying that the employment information regarding the borrower's eligibility is correct. This is usually done in the human resources department of the qualifying institution/agency. An official agency stamp or seal (not a notary or address stamp) is required for the deferment or cancellation form to be valid. For deferment, if an official stamp or seal is unavailable, a letter on letterhead stationery providing the following information regarding the borrower is required:
- Name and Social Security Number
- Title and job description
- Date of initial employment in that job
- Verification that the borrower is employed full-time
In addition, for cancellation you must provide:
- A statement that the borrower has completed the full year of full-time employment for the beginning and ending dates specified on the application form
- The date the borrower's employment ceased, or a notice that the borrower will be continuing in their position for the next year
Note: Boston College's own cancellation form along with a job description must be received for each year of eligible cancellation. There are no exceptions.
Borrowers with Federal loans who become totally and permanently disabled (TPD) may apply for cancellation of these loans. Total and Permanent Disability (TPD) is defined as the inability to work and earn money because of an impairment expected to continue indefinitely or result in death.
As of July 1, 2013, applications for Total and Permanent Disability discharge may be filed with Nelnet, the government servicer handling this review process. Information regarding this process can be accessed at www.disabilitydischarge.com. You may request a TPD by phone at 888-303-7818 (available seven days a week from 8:00 a.m. to 8:00 p.m. EST) or by email at disabilityinformation@nelnet.net.
For more infomration, contact a representative in Campus-Based Loans by phone at 800-294-0294 or by email at borrower@gregorybgallagher.com.
| Type of Service | National Defense | National Direct Loans (made prior to 7/23/92) | Federal Perkins Loans (made prior to 7/23/92) | Federal Perkins or National Direct Loans (made on or after 7/23/92) |
|---|---|---|---|---|
Teacher | ||||
| Full-time teacher in math, science, foreign languages, bilingual education, or any field of expertise determined by the state education agency to have a shortage of qualified teachers | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years) |
| Full-time employment in a Head Start Program | N/A | 100% (15% per year) | 100% (15% per year) | 100% (15% per year) |
| Full-time teacher of handicapped children in a public or non-profit elementary or secondary school | 100% (over 5 years) | 100% (over 5 years) | 100% (over 5 years) | N/A |
| Full-time special education teacher, including teacher of infants, toddlers, children, or youth with disabilities | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* |
| Full-time teaching in low-income school eligible for funding under Chapter 1 of the Education Consolidation and Improvement Act of 1981 | 100% (15% per year) | 100% (over 5 years) | 100% (over 5 years) | 100% (over 5 years) |
| Full-time teaching in a public or non-profit elementary or secondary school, an institution of higher education, or an overseas Department of Defense elementary or secondary school | 50% (10% per year) | N/A | N/A | N/A |
| Teacher of pre-kindergarten or childcare program | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) |
| Speech Language Pathologist in a designated low-income school | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) |
| Librarian in or serving a designated low-income school | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) |
| Faculty at a Tribal college or university | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) |
Other Employment | ||||
| Nurses and Medical Technicians providing health care services | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years) |
| Provider or supervisor of the provision of services to high-risk children from low-income communities and their families | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years) |
| Provider of early intervention service in a public or non-profit program under public supervision | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* | 100% (over 5 years)* |
| Military service in U.S. Armed Forces serving under hazardous duty pay | 50% (12.5% per year of qualifying service) for service through 8/14/2008. Service beginning on or after 8/14/2008, cancellation is 100% over 5 years max. | |||
| Full-time law enforcement or corrections officer | N/A | 100% (over 5 years) | 100% (over 5 years) | 100% (over 5 years) |
| Full-time Peace Corps, ACTION, or AmeriCorps VISTA program volunteer | 70% (over 4 years) | 70% (over 4 years) | 70% (over 4 years) | 70% (over 4 years) |
| Public Defender | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) |
| Firefighter | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) | 100%** (over 5 years) |
| Spouse of Victim of 9/11/2001 | For loans made before 9/11/2001, 100% of balance outstanding when cancellation is requested | |||
| Total and permanent disability or death of borrower | 100% | 100% | 100% | 100% |
| Bankruptcy | in some cases | in some cases | in some cases | in some cases |
*Benefit eligibility is effective 10/1/1998.
**Benefit eligibility is effective 8/14/2008.
Types of Loan Cancellation
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Child and Family Services Cancellation form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
This cancellation applies to all Federal Perkins Loans and National Direct Student Loans (NDSL) made on or after July 23, 1992. It also applies to National Direct Student Loans made prior to July 23, 1992; however, it applies to these loans only for work or service performed on or after October 7, 1998.
Eligibility
To be considered eligible for this type of yearly partial cancellation, the borrower must be employed full-time in an eligible public or private non-profit child or family service agency for twelve consecutive months. The borrower must be providing or supervising the provision of services only to high-risk children who are from low-income communities and the families of these children. Borrowers may be providing services to adults only if they are members of the child's family and only if the services are secondary to the services provided to the high-risk children.
- High-risk children are defined as individuals under the age of 21 who are low-income or at risk of abuse or neglect; have been abused or neglected; have serious emotional, mental, or behavioral disturbances; reside in placements outside their homes; or are involved in the juvenile justice system.
- Low-income communities are defined as communities with a high concentration of children eligible to be counted under Chapter 1 of Title 1 of the Elementary and Secondary Education Act of 1965, as amended.
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Early Intervention Cancellation form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
This cancellation applies to all Federal Perkins Loans and National Direct Student Loans (NDSL) made on or after July 23, 1992. It also applies to National Direct Student Loans made prior to July 23, 1992; however, it applies to these loans only for work or service performed on or after October 7, 1998.
Eligibility
To be considered eligible for this type of yearly partial cancellation, the borrower must be employed full-time as a qualified professional provider of early intervention services, as described in section 672(2) of the Individuals with Disabilities Education Act, in a public or non-profit program under public supervision.
- Handicapped children [Individuals with Disabilities Education Act, Section 602 (a)(1)] are defined as intellectually disabled, hard-of-hearing, deaf, speech- or language-impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, or other health-impaired children with specific learning disabilities who by reason thereof require special education and related services.
- Handicapped infants and toddlers [Individuals with Disabilities Education Act, Section 672 (1)] are defined individuals from birth to age two, inclusive, who need early intervention services because they are experiencing developmental delays, as measured by appropriate diagnostic instruments and procedures in one or more of the following areas: cognitive, physical, psychosocial, language or speech development, or in self-help skills; or they have a diagnosed physical or mental condition which has a high probability of resulting in developmental delay. Such terms may also include, at a state's discretion, individuals who are at risk of having substantial developmental delays if early intervention services are not provided.
- Early intervention services [Individuals with Disabilities Education Act, Section 672 (2)] are defined as developmental services which are: provided under public supervision, provided at no cost except where Federal or State law provides for a system of payments by families, including a schedule of sliding fees, and designed to meet "handicapped infants or toddlers" developmental needs.
- Qualified personnel are defined as special educators, speech and language pathologists and audiologists, occupational therapists, physical therapists, psychologists, social workers, nurses, and nutritionists; and they are provided in conformity with an individualized family service plan [Section 677].
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
Schools must cancel up to 100% of a Perkins Loan if the borrower has served full-time as a qualifying law enforcement or corrections officer. If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Law Enforcement Cancellation form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
This cancellation applies to all Federal Perkins Loans and National Direct Student Loans (NDSL) made on or after July 23, 1992. It also applies to National Direct Student Loans made prior to July 23, 1992; however, it applies to these loans only for work or service performed on or after October 7, 1998.
Eligibility
Employment Agency
- A local, state, or federal agency that is publicly funded
- Primary activities pertain to crime prevention, control, or reduction or to the enforcement of criminal law, including (but not limited to):
- police efforts to prevent, control, or reduce crime to apprehend criminals
- activities of courts and related agencies having criminal jurisdiction
- activities of corrections, probation, or parole authorities
- problems relating to the prevention, control, or reduction of juvenile delinquency or narcotic addiction
Borrower Employment
- Borrower's position must be essential to the agency's primary mission
- Borrower must be a full-time employee of an eligible agency for twelve consecutive months
- Borrower must be a sworn officer or person whose principal responsibilities are unique to the criminal justice system
- The agency must be able to document the borrower's employment function
Non-Eligible Situations
- If borrower's primary responsibilities are for the enforcement of civil, regulatory, or administrative laws
- If borrower's primary duties (official job duties) are supportive, such as typing, filing, accounting, office procedures, purchasing, stock control, food service, transportation, or maintenance of building, equipment, or grounds
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Military (Combat) Cancellation form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
Eligibility
A borrower is entitled to cancellation of up to 50% of a Perkins Loan or NDSL for service in the U.S. Armed Forces in an area of hostility or an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code. The cancellation rate for every complete year of qualifying service is 12% of the original principal loan amount plus any interest that accrued during the year.
To qualify for military cancellation, a borrower must be serving a period of full-time active duty in the Armed Forces (that is, U.S. Army, Navy, Air Force, Marine Corps, or Coast Guard). A member of the National Guard or the Reserves serving a period of full-time active duty in the Armed Forces is also eligible to receive a military deferment.
For a Perkins loan or NDSL cancellation, the service in the Armed Forces must be in an area of hostility or an area of imminent danger that qualifies for special pay under Section 310 of Title 37 of the U.S. Code.
Cancellation Rate
The cancellation rate of 12% of the original principal loan amount is for each complete year of service; service for less than a complete year or any fraction of a year beyond a complete year does not qualify.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the appropriate form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
This cancellation applies to all Federal Perkins Loans and National Direct Student Loans (NDSL) made on or after July 23, 1992. It also applies to National Direct Student Loans made prior to July 23, 1992; however, it applies to these loans only for work or service performed on or after October 7, 1998.
Eligibility
To qualify for this yearly partial cancellation, the borrower must be employed full-time as a nurse or medical technician providing health care services for twelve consecutive months.
- A nurse is defined as a licensed practical nurse, registered nurse, or other individual who is licensed by the appropriate state agency to provide nursing services.
- A medical technician is defined as an allied health professional (working in fields such as therapy, dental hygiene, medical technology, or nutrition) who is certified, registered, or licensed by the appropriate state agency in the state in which he or she provides health care services.
- An allied health professional is defined as someone who assists, facilitates, or complements the work of physicians and other specialists in the health care system.
The American Medical Association considers the following to be allied health professions:
- Anesthesiology Assistant
- Athletic Trainer
- Audiologist
- Cardiovascular Technologist
- Cytotechnologist
- Dental Assistant, Hygienist, or Lab Tech
- Diagnostic Medical Sonographer
- Dietitian/Nutritionist
- Emergency Medical Technician
- Licensed Social Worker
- Nuclear Medicine Technology
- Occupational Therapist or Assistant
- Ophthalmic-Related Occupations
- Orthotist and Prosthetist
- Paramedic Health Information
- Perfusionist
- Physical Therapist
- Physician Assistant
- Radiologic Technology
- Rehabilitation Counselor
- Respiratory Therapist or Technician
- Speech and Language Pathologist
- Surgical Technologist
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Peace Corps, ACTION, VISTA Cancellation form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
This cancellation applies only to Perkins loans.
Eligibility
- Full-time service for a full year as a Peace Corps volunteer
- Full-time service for a full year as a volunteer under the Domestic Volunteer Service Act (ACTION/AmeriCorps VISTA)
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment; and
- 20% of the original principal amount for each of the third and fourth full years of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Pre-Kindergarten, Childcare, or Head Start Cancellation form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
Eligibility
Effective August 14, 2008, the Head Start program was expanded to include eligibility for a borrower working as a full-time staff member in a pre-kindergarten or childcare program. A full-time staff member is someone who is regularly employed in a full-time professional capacity to carry out the educational part of a Head Start Program. The program must operate for a full academic year or its equivalent, and the borrower’s salary may not be more than that of a comparable employee working in the local educational agency. An authorized official of the Head Start Program must sign the borrower’s cancellation form to certify the borrower’s service.
- Childcare Program is defined as a program that is licensed and regulated by the state and provides childcare services for fewer than 24 hours per day per child, unless care in excess of 24 consecutive hours is needed due to the nature of the parents’ work.
- Pre-Kindergarten is defined as a state-funded program that serves children from birth to age six and addresses the children’s cognitive (including language, early literacy, and early mathematics), social, emotional, and physical development.
Cancellation Rate
The cancellation rate is 15% of the original principal amount for each complete full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Teaching Cancellation (Low-Income School) form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
This cancellation applies to all Federal Perkins loans and National Direct Student Loans.
Eligibility
To qualify for this yearly partial cancellation, the borrower must:
- teach full-time for a full academic year or two semesters which are completed and consecutive and that generally fall within a twelve-month period;
- teach full-time in a public or other non-profit elementary or secondary school system and be directly employed by the school system (educational programs below grade one may be included if they are part of the state's elementary program);
- provide direct and personal services to students through direct classroom teaching or classroom-type teaching in a non-classroom setting, or be providing educational services directly related to classroom teaching such as school librarians or school guidance counselors (a teacher's aide, social worker, or school psychologist may qualify for cancellation in some circumstances; however, a supervisor, administrator, researcher, or curriculum specialist is not a teacher unless he or she primarily provides direct and personal educational services to students); and
- teach in a school that is listed in the Directory of Designated Low-Income Schools of the Federal Register for that academic year. The directory is updated and published annually by the Federal government.
A low-income school is defined as:
- a school with more than 30% of its enrollment counted in the funding formula of Title 1 of the Elementary and Secondary Education Act of 1965, as amended.
- a public or other non-profit private elementary or secondary school that is located in the school district of a local educational agency that is eligible for assistance under Title 1 of the Elementary or Secondary Education Act of 1965, as amended.
- an elementary and secondary school operated by the Bureau of Indian Affairs (BIA) or operated on reservations by Indian tribal groups under contract with the BIA qualify as low-income schools.
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
Subsequent Year Provision
If you received partial cancellation for one year of service in a school listed in the Directory of Designated Low-Income Schools of the Federal Register, but the subsequent year the same school is not listed, you are still eligible to receive partial cancellation on the same school based on your prior-year qualification.
Questions about the inclusion or omission of a particular school should be directed to the state education agency contact in the state where the school is located, not the U.S. Department of Education.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Attach verification that your school is considered low-income from the Directory of Designated Low-Income Schools of the Federal Register.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Teaching Cancellation (Shortage Areas) form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
Eligibility
To qualify for this yearly partial cancellation, the borrower must:
- teach full-time for a full academic year or two semesters which are complete and consecutive and that generally fall within a twelve-month period;
- teach full-time in a public or other non-profit elementary or secondary school system and be directly employed by the school system (educational programs below grade one may be included if they are part of the state's elementary education program); and
- teach full-time in the fields of mathematics, science, foreign languages or bilingual education, or any other "field of expertise" that is determined by a state education agency to have a shortage of qualified teachers in that state. The majority of the classes being taught must be in the borrower's field of expertise.
A borrower who is teaching in science, mathematics, foreign language, or bilingual education qualifies for cancellation even if the state has not designated the subject area in which he or she is teaching as a shortage area.
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
If you are receiving or applying for an employment-related deferment or cancellation benefit, you are required to complete the Teaching Cancellation (Special Education/Handicapped) form below. If you have questions or concerns about cancellation and deferment benefits that relate to your employment, please contact Boston College directly at 800-294-0294.
Eligibility
To qualify for full-time teacher of "special education" and "handicapped" children, the borrower must:
- teach full-time for a full academic year or two semesters which are complete and consecutive and that generally fall within a twelve-month period;
- teach in a full-time public or other non-profit elementary or secondary school system and be directly employed by the school system (educational program below grade one may be included if they are part of the state’s elementary education program);
- provide direct and personal special education services to students through direct classroom teaching or classroom type teaching in a non-classroom setting;
- teach students who are infants, toddlers, children or youth with disabilities as defined in section 672 (2) of the Individuals with Disabilities Education Act or the majority of the students being taught must be handicapped children according to the definition of "handicapped" according to Federal guidelines; and
- exclusively teach students requiring special education services.
Note: A teacher of handicapped/special education children does not have to teach in a low-income school to qualify for this cancellation.
Handicapped students are defined [Individuals with Disabilities Education Act , Section 6102(a)(1)] as:
- children who are intellectually disabled, hard of hearing, deaf, speech or language impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, or otherwise health impaired; or
- children with specific learning disabilities who by reason thereof require special education and related services.
Special education students are defined as:
- infants and toddlers with disabilities are individuals from birth to age two, inclusive, who need early intervention services because they are experiencing developmental delays, as measured by appropriate diagnostic instruments and procedures, in one or more of the following areas: cognitive, physical, psychosocial, language or speech development, or self-help skills. Or, they may have a diagnosed physical or mental condition that has a high probability of resulting in developmental delay. At the state's discretion, individuals who are at risk of having substantial developmental delays if early intervention services are not provided may be included in this category [Individuals with Disabilities Education Act, Section 672(1)].
- children and youth with disabilities are children and youth from ages 3 through 21, inclusive, who require special education and related services because they have disabilities as defined in the Individuals with Disabilities Education Act, Section 602(a)(1). This section defines "handicapped children" as children who are intellectually disabled, hard of hearing, deaf, speech or language impaired, visually handicapped, seriously emotionally disturbed, orthopedically impaired, or otherwise health impaired and with specific learning disabilities who by reason thereof require special education and related services.
Cancellation Rates
- 15% of the original principal amount for each of the first and second full years of employment;
- 20% of the original principal amount for each of the third and fourth full years of employment; and
- 30% of the original principal amount for the fifth full year of employment.
General Requirements for Cancellation
- Borrower must apply for deferment and cancellation by obtaining the specific cancellation forms from Boston College.
- Borrower must provide employment verification; proof of license, registration, or certification; and any other documentation that the school requests to show that he or she qualifies for cancellation.
- Forms must be submitted by the deadlines established by Boston College.
- None of the loan may be canceled for services performed either before the date the loan was disbursed or during the enrollment period covered by the loan.
- Defaulted loan amounts are not eligible for cancellation. Only cancellations for time prior to acceleration will be allowed.
- No repayments made by a borrower during a period for which the borrower qualified for cancellation may be refunded.
Loan Deferment
Loan Deferment Charts
| Deferment Conditions | National Direct Loans (made before 10/1/80) | National Direct Loans (made on or after 10/1/80, but before 7/1/93) | Perkins Loans (made before 7/1/93) | Federal Perkins and Direct Loans (made on or after 7/1/93) |
|---|---|---|---|---|
| While enrolled as a student at least half-time (medical internship/ residency excluded) | ||||
| While seeking and unable to find full-time employment | Up to 3 years | |||
| While experiencing periods of economic hardship | Up to 3 years | |||
| While engaged in service that qualifies for cancellation | ||||
| While serving in an eligible internship or residency | Up to 2 years | Up to 2 years | ||
| While a member of the U.S. Army, Navy, Air Force, Marines, or Coast Guard | Up to 3 years | Up to 3 years | Up to 3 years | |
| While an officer in the Commissioned Corps of U.S. Public Health Service | Up to 3 years | Up to 3 years | ||
| While on full-time duty as a member of NOAA | Up to 3 years | |||
| While a mother of preschool-age children and starting or returning to work at a salary no more than $1 above minimum hourly wage | Up to 3 years | |||
| During period of hardship to the borrower (prolonged illness or unemployment)** |
(1) Defense Loans made before October 1, 1980, allow deferments of up to 3 years for students enrolled less than half-time.
(2) Includes graduate fellowship, fellowship-supported study, and approved rehabilitation programs.
(3) Spouse only.
(4) Spouse or other dependent.
*This deferment is followed by a six-month grace period before repayment begins. During the grace period, principal need not be paid, and interest does not accrue.
**Principal may be deferred, but interest continues to accrue.
| Deferment Conditions | Stafford | Grad PLUS |
|---|---|---|
| At least half-time study at a postsecondary school | ||
| Study in an approved graduate fellowship program or in an approved rehabilitation training program for the disabled | ||
| Unable to find full-time employment | ||
| Economic hardship (includes Peace Corps Service) | ||
| Engages in service listed under discharge/cancellation conditions | ||
| Active Military Duty (for loans first disbursed on/after July 1, 2001); while borrower is on active duty during a war, other military operation, or national emergency |
Types of Loan Deferment/Forbearance
Economic Hardship Deferment
Economic hardship deferments can be granted for periods of up to one year at a time, not to exceed three years' total deferment. Borrowers must provide satisfactory documentation, as specified by the University, showing that they are within any of the following categories:
- Receiving an economic hardship deferment for either a Stafford or PLUS loan for the same period of time the Perkins loan deferment is requested
- Receiving federal or state public assistance (e.g., food stamps, Supplemental Security Income, etc.)
- Working full-time (over 30 hours/week) and under the poverty line
General Forbearance
Forbearance is a temporary postponement of payments. Unlike during deferment, interest continues to accrue on the account during forbearance. Interest may be paid as it accrues or may be deferred.
Borrowers must request forbearance in writing, stating the reason for the forbearance and provide support documentation as specified by the University.
General forbearance can be granted to borrowers experiencing the following:
- Financial hardship
- Poor health, as certified by a physician
- Full-time volunteering in a tax-exempt organization
- Other acceptable reasons, as determined by the University
General forbearances may be granted for up to one year at a time, not to exceed three years' total forbearance.
A borrower may defer repayment if he or she is enrolled and in attendance as a student in a course of study that is part of a graduate fellowship program approved by the Department of Education, including graduate or postgraduate fellowship–supported study (such as a Fulbright grant) outside the United States.
To receive deferment for enrollment in a graduate fellowship program, the borrower must provide certification that he or she is engaged in full-time study in an approved graduate fellowship program (or has been accepted by the program).
General Requirements
- The school grants a graduate fellowship deferment only to students enrolled in a course of study that is part of a fellowship program approved by the Department of Education, including graduate or postgraduate fellowship–supported study outside the United States.
- The borrower must provide certification that he or she was engaged in full-time study in a approved graduate fellowship program (or has been accepted by the program).
A borrower who is serving in a medical internship or residency program may be eligible for a mandatory forbearance for no more than 12 months at a time. If you continue to meet the eligibility requirements for the forbearance when your current forbearance period expires, you may request another mandatory forbearance.
To obtain this kind of forbearance, a borrower must provide the loan holder with specific documentation.
To qualify for a forbearance in an internship required for state licensing, the borrower must provide the loan holder with the following certifications:
- A statement from an official of the appropriate state licensing agency that successful completion of the internship program is a prerequisite for its certification of the individual for professional service or practice
- A statement from the organization offering the internship program certifying that a person must have a bachelor's degree to be admitted into the internship program and that the borrower has been accepted into its internship program
- The anticipated dates on which the borrower will begin and complete the program
Visit the link below to learn more about military deferment.
Borrowers must be serving as full-time officers in the Commissioned Corps of Public Health of the United States Public Health Service (USPHS) to qualify for USPHS deferment.
A borrower may defer repayment if he or she is enrolled in a course of study that is part of an approved Department of Education rehabilitation training program for disabled students.
To receive this deferment, the borrower must provide the school with proper certification. Documentation to support this certification must be kept in the student's file.
General Requirements
- A rehabilitation training deferment is granted only to students enrolled in a course of study that is part of an approved Department of Education rehabilitation training program for disabled students.
- The borrower must provide the school with the following certification:
- Certification that the borrower is receiving, or is scheduled to receive, rehabilitation training from the agency
- Certification that the agency is licensed, approved, certified, or otherwise recognized by a state agency responsible for programs in vocational rehabilitation, drug or alcohol abuse treatment, or mental health services; or by the Department of Veterans Affairs
- Certification that the agency provides or will provide the borrower rehabilitation services under a written plan that (1) is individualized to meet the borrower's needs; (2) specifies the date that services will end; and (3) is structured in a way that requires substantial commitment from the borrower
- Documentation supporting the student's eligibility for this deferment is kept in the student's file.
A borrower may defer repayment of a Perkins loan while enrolled in at least half-time status at an eligible school of higher education (or a comparable institution outside the United States, approved by the U.S. Department of Education). Eligible schools will have a Federal School Code from the Department of Education. Half-time status is determined by the qualifying school where the borrower is enrolled. Generally, this is six hours per semester.
While an account is on deferment status, monthly payment is not required, and interest does not accrue. To request deferment, a student deferment form must be completed by the student and certified by the school they are attending.
After deferment, the borrower is entitled to a nine-month post-deferment grace period if he or she has not fully used up the original nine-month grace period prior to returning to school. If the original nine-month grace period has expired, the borrower is entitled to a six-month post-deferment grace period. During the post-deferment grace period, monthly payment is not required, and interest does not accrue.
A borrower may defer repayment of a Perkins loan for up to three years, if seeking and unable to find full-time employment. Documentation, as specified by the University, is required.
Loan Repayment
Student Loan Repayment Presentation Information Session (Spring 2024)
Grace Period
The grace period begins when the borrower falls below half-time student status. All Stafford Loans have a six-month grace period.
Repayment
Repayment begins after the grace period is completed. The standard repayment term for Direct Loans is ten years. You also have the option to consolidate your Direct Loans. For more information, visit the Loan Consolidation tab on this web page.
Billing
You will be billed by your lender or a billing service. It is important to keep your billing address and contact information up to date with your lender. Contact your lender with specific questions about billing cycles, methods of payment, or payment amount.
Monthly repayment begins upon expiration of the grace period. Prepayment of all or part of your Boston College loan can be made at any time without penalty.
Interest accrues monthly on the 10th. Payments are due by the first day of the following month. The University may impose a late charge if the scheduled payment is not made when due. Late charges may also be imposed if proper documentation to defer the payment is not submitted in a timely manner (as determined by the University). Payments are applied to accounts in the following order:
- Collection costs (if applicable)
- Late charges (if applicable)
- Accrued interest
- Principal
For answers to questions you may have regarding repayment, call the Office of Student Services at 800-294-0294 and ask to speak with a member of the Loan Staff. You may also email questions to borrower@gregorybgallagher.com.
Repayment Methods
- Billing Statements: If you elect this option, a billing statement will be mailed each month to the address on file. It is very important to keep your billing address updated with ECSI at all times. A missing billing statement does not alleviate your responsibility to make a payment. If for any reason you do not receive your billing statement, you may mail your payment to the mailing address below. You can also log in to your account on ECSI's website to view an image of your bill. You should then check the mailing address we have on file for you and update it if necessary.
- E-Billing: You may choose to receive a billing statement by email. Log in to ECSI's website to initiate this service.
- Electronic Payment (ACH): Sign up for this quick and easy loan payment method. Monthly payments are taken from your checking or savings account and transferred electronically to your loan account. You may choose your minimum payment or any amount higher that you like. You also have a choice of four possible withdrawal dates: the 1st, 10th, 15th, or 20th of each month. Choose the one that best fits your pay schedule. Log in to ECSI's website to initiate this service.
- Payments in Person: Payments can be made at the Office of Student Services, Lyons Hall, Room 101, Monday through Friday (excluding holidays), during our business hours.
- Payments Without a Payment Stub: If you have lost or misplaced your billing statement, please mail your check directly to ECSI (see address below). Be certain to include your account number (Eagle ID number) on the check. You may also log in to ECSI's website and make an electronic payment.
- Payments Made via Personal Computer (Online Banking): If you have automated banking services or use your personal computer to issue payments, please send them directly to ECSI (see address below). Note: This form of payment is the least efficient of all the available payment methods. Your bank will write a check on your behalf and send it without a payment stub. Often, this delays processing. You may want to consider switching to ACH (electronic payments) instead.
Payment Mailing Address
ECSI
181 Montour Road
Coraopolis, PA 15108-9408
Make checks payable to Boston College. Please write "loan payment" and your Eagle ID number on all checks.
Loan Forgiveness
The Department of Education is announcing major changes to the Public Service Loan Forgiveness Program (PSLF). These changes will begin as temporary but may become permanent. In an effort to keep our student loan borrowers updated, visit the TISLA website to keep up to date on all proposed changes. If you have further questions or need assistance please reach out to us at 800-294-0294 or via email at borrower@gregorybgallagher.com.
The recently enacted College Cost Reduction and Access Act (CCRAA) creates a new loan forgiveness option for Stafford Loan borrowers who hold public service jobs. Borrowers who meet requirements outlined in the law may be eligible to have a portion of their student loan debt forgiven.
The borrower must work full-time in a public or private not for profit for 10 years prior to applying for forgiveness. Service cannot have begun until after July 1, 2008. Borrowers must make 120 installments on one of the Income Driven Payment Plans:
- Income-Based Repayment (IBR)
- Income Contingent Repayment (ICR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
The loan being forgiven must be a Direct Loan. You may have loans from private lenders (Stafford) and also Direct loans. You must first consolidate (see Loan Consolidation tab on this page) both of these making all your loans Direct loans before you can begin counting your service period. If you already have a consolidation loan with another company, you can consolidate again into a Direct Loan in order to take advantage of this benefit. (This is the only time you may reconsolidate without adding new money.)
Loans eligible for this benefit include:
- Direct Stafford Loans and FFEL Stafford Loans
- FFEL Stafford loans must be consolidated
- Federal Loan Consolidations can be completed at studentaid.gov
- Graduate Plus Loans
- Previously Consolidated Loans
- Perkins Loans (only if consolidated into a direct loan consolidation)
- Nursing Loans (only if consolidated into a direct loan consolidation)
For more information, visit the Federal Student Aid website.
To encourage individuals to enter and remain in the teaching profession, the Teacher Loan Forgiveness Program grants loan forgiveness of up to $17,500 for teachers in certain specialties, and up to $5,000 for other teachers who teach for five years in low-income schools and meet other requirements.
Several different forgiveness benefits are available. Be sure to read carefully in order to determine your eligibility. Contact your Stafford lender/servicer to initiate the process of forbearance while you are working in an eligible field. Specific documentation may be required by the lender/servicer.
Stafford Loan Teacher Forgiveness information can be accessed at the Federal Student Aid website.
Note: If you have a Perkins loan, there is a separate loan forgiveness program for Teachers known as “CANCELLATION” which you can access under the Loan Cancellation Tab on this page.
- Massachusetts Loan Repayment Program for Health Care Professionals
- National Health Service Corps Loan Repayment
- The Bureau of Health Workforce (BHW) now has a one-stop-shop portal that will allow nursing students to access and apply for various loan repayment and scholarship programs. To learn more, please visit the BHW portal.
- The National Health Resources & Services Administration (HRSA) oversees the Nurse Corps Loan Repayment Program. Through this program, qualifying nurses can get up to 85% of their student loan debt paid off in exchange for working two to three years in critical shortage health facilities in the United States.
The state of Massachusetts supports loan repayment programs for primary healthcare professionals, with the goal of incentivizing health professionals to practice in places with a shortage of healthcare providers.
Loan Consolidation
Loan consolidation combines several individual student loans with various interest rates and repayment schedules into one larger loan from a single lender. Consolidation loans are available for federal loans, including the Federal Family Education Loan Program (Stafford; PLUS), Perkins Loans, Health Professional Student Loans, Nursing Loans, and Direct Loans. You may not consolidate Federal Loans together with Private Loans—there are programs specifically for Private Loan consolidation. You may consolidate at any time during Grace or Repayment.
If you are in default on a federal education loan, you may receive a consolidation loan from the Direct Program if certain conditions are met. Your signature on the consolidation application and promissory note obligates you to the terms of the new loan. You do not have to consolidate all of your loans, but any loans you list on the application will be consolidated.
Note: Consolidating a Perkins Loan will result in loss of entitlements. You will no longer be able to apply for forgiveness (loan cancellation) for occupations such as teaching, nursing, social work, or law enforcement.
Important: Federal Student Loan Consolidation is free! You can consolidate your loans by visiting studentaid.gov. Do not pay anyone to consolidate your loans.
- Auxiliary Loans to Assist Students (made before October 17, 1986)
- Federal Insured Student Loans (FISL)
- Federal Parent Loans for Undergraduate Students (PLUS)
- Federal Perkins Loans
- Health Education Assistance Loans (HEAL)
- Health Professions Student Loans (including loans for disadvantaged students)
- Nursing Student Loans (NSL)
- Subsidized and Unsubsidized Federal Stafford Loans
- Single servicing company
- Fixed interest rate
- One monthly payment, generally lower than individual payments
- Full eligibility for deferment and forbearance
- Extended repayment term from 12 to 30 years, depending on the total loan debt
- Eligible for federal forgiveness programs
- Loss of grace period: Repayment starts within 60 days of disbursement
- Loss of benefits tied to underlying loans (e.g., Perkins loan cancellations)
- Loss of subsidized interest benefit on Perkins loans
- Possible increase in total repayment amount: The longer you take to pay off the loan, the more interest you will ultimately pay
The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate.
PLUS Loan borrowers: If you consolidate an 8.5% PLUS Loan, your interest rate will DECREASE to 8.25% due to the federally mandated maximum, so long as the PLUS Loans are consolidated.
HEAL Loan borrowers: If you consolidate HEAL loans, the portion of the Consolidation Loan that repays the HEAL loans has a variable interest rate that changes annually.
The maximum time you are allowed to repay your Federal Consolidation Loan varies, depending on the amount of the loan and any outstanding amounts you owe on other educational loans that you do not consolidate. Below are some common repayment lengths.
| Amount | Years to Repay |
|---|---|
| <$10,000–19,999 | 15 |
| $20,000–39,999 | 20 |
| $40,000–59,999 | 25 |
| $60,000 to $600,000 | 30 |
- Standard Repayment Plan
- Extended Repayment Plan
- Graduated Repayment Plan
- Income-Sensitive Repayment Plan
- Income-Contingent Repayment Plan (Direct Loan Program only)
- Income-Based Repayment Plan (beginning 7/1/09)
Loan Default
If you default on your student loan, you face serious penalties:
- Your school or lender will report your default to the national credit bureaus. You will be assigned the worst possible credit rating, which remains on your credit report for seven years after you pay your loan in full. This credit rating may have severe consequences on your ability to obtain a credit card or financing for a home or car.
- Your loan may become immediately due and payable in full. You are not eligible for deferments, forbearances, or alternative repayment plans.
- Your school or lender may turn your account over to a professional collection agency, in which fees and other additional costs are added to your principal balance.
- Your wages may be garnished. federal regulations allow up to 10% of your income after taxes to be taken away until your loan is paid in full—without going to court first.
- Your Federal Treasury payments (such as federal income tax refund and Social Security benefits) can be taken and applied to your defaulted loan. Your state income tax refund can also be taken.
- You will not receive any federal or state student financial aid if you decide to return to school.
- Your account may be assigned to the Department of Education, which may sue you.
- You may be denied employment with a federal, state, county, city, or local government; or your existing employment with such agencies may be terminated.
- You may be denied a professional license required for your profession.
If you're having problems making your student loan payments contact your loan holder immediately. Unlike other consumer debt, such as credit cards, you have options. You may be eligible for a deferment, forbearance, loan consolidation, or loan cancellation/discharge.
If you experience financial difficulties due to unemployment, illness, or other economic hardships, don't be embarrassed or afraid to ask for help. Your loan holder can talk with you about your options.
Also, you might consider contacting a local, non-profit consumer counseling organization for advice about managing all of your personal finances. Visit the National Foundation for Credit Counseling website to locate an agency near you or to use their online debt advice service.
Locate Your Loans
National Student Loan Data Systems (NSLDS)
The NSLDS is the U.S. Department of Education's central data warehouse for student aid. It receives data from schools, agencies that guarantee loans, the Direct Loan program, the Pell Grant program, and other U.S. Department of Education programs. The NSLDS provides a centralized, integrated view of Title IV loans and Pell Grants that are tracked through their entire cycle, from aid approval through closure.
All U.S. colleges and universities are required to report enrollment data to the NSLDS on a monthly basis. If you are going on to another college or university, the NSLDS is where your lenders will get the information necessary to grant your student deferment.
Borrowers, using their FSA ID, can log onto the Federal Student Aid website to make inquiries about their Title IV loans and/or Pell Grants. The Student Aid website displays information on loan and/or grant amounts, outstanding balances, loan status, and disbursements. For more information, visit the Federal Student Aid website.
Student Loan Ombudsman
Federal Student Aid Ombudsman Group
The Federal Student Aid Ombudsman Group is dedicated to helping resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans.
The Ombudsman Group is a final resource for individuals after exhausting customer service avenues. Before contacting the Ombudsman, borrowers concerned about student loans should contact their loan holder. Current students should first contact their financial aid or loan office.
Massachusetts Student Aid Ombudsman Group
You can contact the Massachusetts Office of Student Loan Ombudsman by calling 888-830-6277 or visiting mass.gov/student-loan-assistance.