Some defaulted loans may qualify for the Fresh Start Program. Fresh Start will continue through one year after the COVID-19 payment pause ends. If your loans are eligible, you'll temporarily regain several student aid benefits. You'll also get the opportunity to get out of default and keep those benefits for the long term. For more information on the Fresh Start Program, click here: https://studentaid.gov/announcements-events/default-fresh-start

Another way to get out of default is to repay the defaulted loan in full, but that's not a practical option for most borrowers. There are two additional ways to get out of default if Fresh Start and full repayment are not options and they are: rehabilitating your loan(s) and consolidating your loan(s).

For assistance in getting out of default in Federal and Private Education Loans, our Alumni Support Center is here to help! Calling 1-866-508-0748 Option 7 or emailing alumnisupport@herzing.edu will start the process.

To be in default means that you have fallen very far behind on your federal student loan payments. There are many different options to clear your default. Reaching out to your lender or our Alumni Support Center (866-508-0748 option 7) can start you on the journey to getting out of default.

The consequences of defaulting can not only impact your ability to borrow but can impact your finances as well. Consequences include the following:

You lose eligibility for additional federal student aid.

The default is reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card.

In some professions, being in default can result in loss of professional license.

For more information on defaulted federal loans, click here: https://studentaid.gov/manage-loans/default

If you are employed by a U.S. federal, state, local, or tribal government or not-for-profit organization, you might be eligible for the Public Service Loan Forgiveness Program. Keep reading to see whether you might qualify.

The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

For more information visit https://studentaid.gov/pslf/

The terms forgiveness, cancellation, or discharge mean roughly the same thing, but they are used differently. They mean that you are no longer required to repay some or all of your loan.

If you’re no longer required to make payments on your loans due to your job, this is generally called forgiveness or cancellation.

If you’re no longer required to make payments on your loans due to other circumstances, such as a total and permanent disability or the closure of the school where you received your loans, this is generally called discharge.

It’s important to remember that outside of the circumstances that may qualify you to have your loans forgiven, canceled, or discharged, you remain responsible for repaying your loan—whether or not you complete your education, find a job related to your program of study, or are happy with the education you paid for with your loan. Even if you were a minor (under the age of 18) when you signed your promissory note or received the loan, you are still responsible for repaying your loan.

For more in-depth information of loan forgiveness, Please go to: https://studentaid.gov/manage-loans/forgiveness-cancellation

Herzing has the Alumni Support Financial Services (ASFS) Center to help you. Whether you graduate or leave before finishing your program, the Alumni Support Center can assist you with choosing a federal repayment plan that is right for you. The ASFS Center can be reached at 866-508-0748 option 7.

If you wish to navigate repayment on your own, we recommend starting with your lender. The lender will have resources on how to begin the repayment process through their website.

Repayment of most federal student loans begins six months after you leave college or drop below half-time enrollment.

PLUS loans enter repayment once your loan is fully disbursed (paid out). If you have received a PLUS loan as a graduate or professional student, the loans go into automatic deferment. This deferment means you won’t have to pay while you’re in school and are enrolled at least half-time. The deferment continues for an additional six months after you leave school or drop below half-time enrollment status.

If you’re a parent PLUS loan borrower, you can ask for a deferment. This deferment means you won’t have to pay on the loan while your child is enrolled at least half-time and for an additional six months after your child leaves school or drops below half-time status.

If you’ve started repaying your loans and then go back to school on at least a half-time basis, Herzing will send an automatic deferment to your lender for federal loans.

If you have loans from a private source, outside of federal loans, please refer to your individual loan agreement with your lender.

Independent undergraduate students are eligible for up to $57,500 in federal loan funding.
Most dependent undergraduate students are eligible for up to $31,000 in federal loan funding.
Graduate students are eligible for up to $138,500 in federal loan Funding. This amount will also include any loans taken out in your undergraduate career. For example, as a student you borrowed $12,300. This means you would have $126,200 remaining to use in a graduate program.
If you have reached the maximum, you can pay down your loans to become eligible for more loan funding.
To track the amount of loan funding you have used, please utilize the National Student Data System: https://nslds.ed.gov/nslds/nslds_SA/

If you got your Direct Subsidized or Unsubsidized Loan on or after July 1, 2022, and before July 1, 2023, it will have a fixed interest rate after the payment pause ends:
For undergraduate students, the interest rate for Direct Subsidized Loans and Direct Unsubsidized Loans is 4.99%.
For graduate or professional students, the interest rate for Direct Unsubsidized loans is 6.54%

If you received loans before July 1, 2022, your interest rates can be found here: https://studentaid.gov/understand-aid/types/loans/interest-rates#older-rates

The interest rate will also be listed in your account with your loan servicer.

Once you get your first loan disbursement, you will have a loan servicer assigned to you. They will use the contact information provided to Herzing to send you their notifications.

If you don't receive communications from your lender, you can find out who they are by going to the National Student Data System, https://nslds.ed.gov/nslds/nslds_SA/—using the same login as your FAFSA. NSLDS will give you information on all of your federal funds in one place.

If your schedule or funding options have changed and you need more loans to cover tuition and fees, you will be notified and just need to accept the increase in the loan amount through your financial aid portal.

If you want to increase your loans to receive excess funding (stipend), you will need to get in touch with your financial aid advisor and discuss your options. We want to ensure that you understand what increasing your loans will do to your repayment in the future.