Request Information
Ready to find out what MSU Denver can do for you? We’ve got you covered.
Welcome to the Office of Financial Aid Debt Management Resource Page
This page is intended to help you understand and track your student loan debt, resolve issues with default and over-borrowing, review student loan repayment options, and develop an understanding of financial literacy. We want every MSU student to succeed throughout their college and professional career. This success is directly impacted by your ability to responsibly manage your student loan debt.
Student Loan Payment Pause - Updates
Student-loan payment pause expected to end
In response to the Covid-19 emergency, the U.S. Department of Education in 2020 paused payments and set interest rates to 0% for eligible federal student loans.
Congress recently passed a law preventing further extensions of the Covid-19 Loan Payment Pause. Student loan interest will resume starting on Sept. 1, 2023, and payments will be due starting in October 2023.
In preparation for these changes, please visit the Federal Student Aid Webpage for important FAQs. You can also check these 6 Ways to Prepare for Student Loan Repayment to Begin Again for helpful next steps.
Ensure that all your information is up to date on your loan provider’s website profile and your StudentAid.gov profile. This will ensure that the Department of Education and your loan provider can contact you with the latest essential information regarding the repayment of your loans.
The Office of Financial Aid and Scholarships at MSU Denver is committed to supporting our students and we are here to provide information and guidance. However, for specific matters regarding your loan, it’s best to work directly with your loan provider.
A Fresh Start for Borrowers with Federal Student Loans in Default
What is the Fresh Start Initiative?
On April 6, 2022, the U.S. Department of Education (ED) announced it would eliminate the negative effects of default for borrowers with defaulted federal student loans. This will enable approximately 7.5 million borrowers with defaulted federal student loans to return to repayment without any past due balance, just like every other borrower. This may also qualify enrolled students for continued financial aid eligibility.
This initiative, called “Fresh Start,” will increase the long-term repayment success of borrowers with defaulted federal student loans, provide substantial benefits to borrowers over the coming months, and last for a period of one year from the end of the payment pause, as described below.
Fresh Start will continue through one year after the COVID-19 payment pause ends. The payment pause ends December 31st, 2022, meaning Fresh Start will last until December 31st, 2023. You will lose access to all the benefits outlined for Fresh Start if you don’t act before the Fresh Start period ends.
Later this year, eligible borrowers’ defaulted loan(s) will be reported by the Department of Education as “current” rather than “in collections” to credit reporting agencies.
To learn more about Fresh Start, use this webpage:
Next Steps to be Considered for Continued Financial Aid Eligibility
Next Steps
- Submit Fresh Start Acknowledgment Form to the Office of Financial Aid and Scholarships.
- Fill out the FAFSA.
- Meet all eligibility requirements as determined by your FAFSA submission.
- Check your Student Hub for any outstanding financial aid requirements.
- Meet Satisfactory Academic Progress (SAP) standards.
The Office of Financial Aid and Scholarships will then determine if your defaulted loans qualify for the Fresh Start Initiative.
Loans Eligible For Fresh Start
If your loans are eligible, you’ll temporarily regain several student aid and credit reporting benefits. You’ll also get the opportunity to get out of default and keep those benefits for the long term.
Loans Eligible for Fresh Start:
- Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans
- Defaulted Federal Family Education Loan (FFEL) Program loans
- Defaulted Perkins Loans held by Department of Education
Loans Not Eligible for Fresh Start:
- Defaulted Perkins Loans held by schools
- Defaulted Health Education Assistance Loan Program loans
- Student loans remaining with the U.S. Department of Justice for ongoing litigation
- Direct Loans that default after the end of the COVID-19 student loan payment pause
- FFEL Program loans that default after the end of the COVID-19 student loan payment pause
If you’re not sure whether your loans qualify, you can call the Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hard of hearing 1-877-825-9923).
Important Note: FFEL Program loans that default during the COVID-19 payment pause will be taken out of default as a result of the expansion of COVID-19 relief. These loans aren’t eligible for Fresh Start.
Fresh Start: What Benefits Do You Get Now?
If you’re eligible for Fresh Start, you can now access federal student aid again. You can apply for federal grants and loans if you want to go back to school. This may help you complete an unfinished degree, possibly making it easier to repay your loans.
The collections relief you’ve gotten during the COVID-19 payment pause continues during Fresh Start. You’ll continue to get the following collections relief:
- Tax refunds (and child tax credits) will not be withheld.
- Wages will not be garnished.
- Social Security payments (including disability benefits) will not be withheld.
- Collection calls will not be made.
The Department of Education stopped reporting your default status in the government credit reporting system (CAIVRS).
Many lenders, especially for loans that are backed by the government, will reject applicants who are marked as “in default” in the government credit reporting system. With this Fresh Start benefit, you may become eligible for certain types of government-backed loans, such as mortgages.
Normally, you can rehabilitate a loan only one time. But Fresh Start will not count as your one chance at rehabilitating your loan(s). If you go into default again and want to rehabilitate your loan(s) later, you can.
The same is true for rehabilitating during the COVID-19 student loan payment pause. If you rehabilitated your loan(s) during the payment pause, that won’t count as your one chance at rehabilitating your loans.
Fresh Start: What Benefits Can You Get Later This Year?
Under an IDR plan, your monthly payment amount can be as low as $0. That’s because on an IDR plan, your monthly payment is based on how much money you make (income) and your family size.
Defaulted loans are not eligible for any of our student loan forgiveness programs. But if you take advantage of Fresh Start, you’ll get out of default status. Then you’ll regain the ability to apply for forgiveness programs, including Public Service Loan Forgiveness.
When you go into default, you lose access to short-term relief options, including forbearance and deferment. Because of Fresh Start, you’ll be able to get out of default. Then you’ll be able to request short-term relief, if you choose.
Thinking of Borrowing? Know Your Loan Limits.
It’s important to remember that regardless of the financial cost of your education, there are annual and aggregate Federal Direct Loan limits for undergraduate and graduate students.
Please refer to the following chart outlining the annual and aggregate Federal Direct Loan Limits:
|
Annual Loan Limits for Dependent Student
|
|||
|
Grade Level by Credits
|
Combined Base Limit For Subsidized and Unsubsidized Loans
|
Additional Limit for Unsubsidized Loans
|
Total
|
|
Freshman (0-29)
|
$3,500
|
$2,000
|
$5,500
|
|
Sophomore (30-59)
|
$4,500
|
$2,000
|
$6,500
|
|
Junior/Senior (60+)
|
$5,500
|
$2,000
|
$7,500
|
|
Annual Loan Limits for Independent Students
|
|||
|
Grade Level by Credits
|
Combined Base Limit For Subsidized and Unsubsidized Loans
|
Additional Limit for Unsubsidized Loans
|
Total
|
|
Freshman (0-29)
|
$3,500
|
$6,000
|
$9,500
|
|
Sophomore (30-59)
|
$4,500
|
$6,000
|
$10,500
|
|
Junior/Senior (60+)
|
$5,500
|
$7,000
|
$12,500
|
|
Teacher Certification
|
$5,500
|
$7,000
|
$12,500
|
|
Annual Loan Limits for Graduate and Professional Students
|
|||
|
Graduate
|
N/A
|
N/A
|
$20,500 (Unsubsidized loan only)
|
| Lifetime Maximum Loan Limits | ||
| Dependent students: | Maximum SUB $23,000 | $31,000 Total |
| Independent Students: | Maximum SUB $23,000 | $57,500 Total |
| Graduate | Maximum SUB $65,500** | $138,500 Total |
**As of July 1, 2012 graduate students are only eligible for unsubsidized and Graduate PLUS loans.
Note: If you indicated on your FAFSA that you will be a graduate student, you will need to submit the GRADMT form to the Office of Financial Aid so we may award your Federal Direct Loans according to the graduate level aggregate limits. This form may be downloaded and printed at our Forms page.
Don’t over-borrow
Over-borrowing or going into EXCESS of your aggregate loan limits will prevent you from receiving any Federal Student Aid! In order to regain financial aid eligibility, you must make satisfactory arrangements with your loan holder and turn in the appropriate documentation to our office. Acceptable documentation may include but is not limited to:
-Payment confirmation from your loan servicer that you have paid the excess amount
-Loan Summary Sheet from Direct Loans confirming you have consolidated all loans that were in excess
To review your loan amounts and determine your loan holder, you must log in by visiting www.studentaid.gov
Transfer Student? Know your loan limits
As a transfer student, it is your responsibility to know your annual loan limits for Federal Direct Loans and have all pending disbursements cancelled at your previous school before transferring to MSU Denver. This ensures a more accurate award package.
Before accepting a Federal Direct Loan at MSU Denver, you must inform the Office of Financial Aid and Scholarships of any disbursements you received at another school during the academic year. Failure to notify our office of any loans you received at another school during the year can result in your existing loans being reduced and billed in order to keep within the annual loan limits. This could result in a balance owed (by you) to MSU Denver.
To avoid being over-awarded at MSU Denver, please follow these simple steps:
- Cancel any pending financial aid disbursements at your previous school before transferring
- Download an Overlapping Loan Clearance Letter (OVERLP) on our Forms page and have it filled out by a financial aid administrator at your previous school.
- If you are unable to get the OVERLP form filled out by your previous school, have your financial aid administrator email our office at [email protected] to confirm how much aid you received and that all pending disbursements are cancelled.
Note: Your previous school may also contact us directly by looking up our contact info on the National Student Loan Data System (NSLDS).
Graduation & Proration
Per Federal regulations, MSU Denver must prorate the loan amounts of graduating seniors who are attending only one semester of an academic year.
Proration limits the amount of subsidized and/or unsubsidized loans a graduating senior can borrow.
Teacher Licensure students who are student teaching in their final semester are not subject to proration of
Federal Direct Loans; however, their budgets will be changed to a single term.
The total of all awarded aid cannot exceed a student’s assigned budget.
| Loan Proration Limits Chart
INDEPENDENT DEPENDENT
|
Repayment Options
Know Your Repayment Options: Calculators and Payment Plans
As a Federal Stafford Loan borrower, you should plan to budget at least 8% of your total monthly income after graduation to be paid towards your student loan debt. Therefore, it’s important to familiarize yourself with the various repayment plans available: standard, extended, graduated, income contingent and income-based. How much you pay and how long you take to repay your loans will vary depending on the repayment plan you choose. Consolidation loans also have varying repayment plans.
To get an idea of your monthly loan payments after you graduate, refer to the online repayment calculator that applies to the repayment plan you are considering.
Payment Plans
Standard Repayment Plan – You will make fixed monthly payments to repay your loan in full within 10 years (not including periods of deferment or forbearance) from the date the loan entered repayment.
Graduated Repayment Plan – Your payments will be lower at first and then will increase, usually every 2 years. You must repay your loan in full within 10 years (not including periods of deferment or forbearance). At a minimum, your payments must cover the interest that accumulates on your loan between payments.
Extended Repayment Plan – You will make fixed or graduated monthly payments and repay your loan in full over a period of time, not to exceed 25 years (not including periods of deferment or forbearance). To be eligible, you must have more than $30,000 in Federal Stafford Loan debt and you must not have had an outstanding balance on a Direct Stafford Loan on Oct. 7, 1998.
Income-Contingent Repayment Plan (ICR) – Your monthly payment amount will be based on your annual income (and that of your spouse if you are married), your family size, and the total amount of your Federal Direct Stafford Loans. As your income changes, your payments may change. If you do not repay your loan after 25 years under this plan, the unpaid portion will be forgiven. You may have to pay income tax on any amount forgiven. This plan is not available for parent PLUS loans.
Income-Based Repayment Plan (IBR) – Your required monthly payment is set at an amount that is intended to be affordable based on your income and family size. To initially qualify for the IBR plan, you must have a partial financial hardship. You are considered to have a partial financial hardship if the monthly amount you would be required to pay on your eligible loans under a Standard Repayment Plan with a 10-year repayment period is more than the monthly amount you would have to repay under the IBR Plan. If you repay under this plan for 25 years and meet other requirements, you may have any remaining balance of your loan(s) forgiven. For more detailed information about this plan or to download an IBR fact sheet, go to the Federal Student Aid website.
If students have private loans on top of their federal loans, it can become a lot to manage between the various different loan servicers. Loan consolidation is NOT the best option for everyone, however you can click below for more information & to determine if it may be a good option for you.
Consolidation Loans – This option allows you to combine your loans into a single Direct Consolidation Loan, which simplifies repayment and allows you to extend the repayment period. Keep in mind that while your monthly payments may be lower, you may pay more interest over the life of the Direct Consolidation Loan. To determine which of your loans may be eligible for a consolidation, visit the Direct Loan Consolidation website.
Avoiding Default
If you are late on any monthly payment, your loan is considered delinquent and your loan servicer will send you a reminder that your payment is late. Keep in mind that you are responsible for ensuring your loan servicer has your most up-to-date address on file. If you become 270 days delinquent in making your loan payments you will go into DEFAULT.
Consequences of going into default are as follows:
- The entire unpaid amount of your loan becomes due immediately.
- You will lose eligibility for any federal student aid and most other federal benefit programs.
- Your loan servicer will report your default to national credit bureaus which will lower your credit score. This will then result in higher interest rates on future loans you may take out, meaning you would pay back a much higher amount on the loan when it goes into repayment.
- Your loan servicer may sue you, garnish all or part of your federal and state tax refunds and other federal or state payments, and/or garnish your wages so that your employer is required to send your loan servicer part of your salary to pay off your loan.
- You will have to pay reasonable collection fees and costs, plus any court cost and attorney fees.
- You will no longer be eligible for any loan deferments.
If you are having trouble repaying your loans, contact your loan servicer! In most cases, your loan servicer will work with you to help determine the best option for you. Options include:
- Changing repayment plans – You loan servicer will determine if this option is applicable.
- Deferment – This option allows you to temporarily stop making payments on your loan.
- Forbearance – This option allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments. If you don’t meet the eligibility requirements for a deferment but are temporarily unable to make your loan payments such as during an illness, you may qualify for forbearance.
In order to get out of default and restore your eligibility to receive federal student aid, you will need to Contact your loan servicer immediately. If you are unsure who your loan servicer is, you may need to log in to Federal Student Aid. Keep in mind that if you have several defaulted loans with different loan servicers, you will need to contact each servicer individually.
After contacting your loan servicer your options will be as follows:
- Repay or satisfy the loans in full. This will allow you to obtain a paid in full letter from your loan servicer.
- Make six consecutive on-time monthly payments. The monthly payment amount will be determined by your loan servicer. After your sixth on time payment you will be eligible for a reinstatement letter that will restore your eligibility to receive financial aid. A reinstatement may only be granted once by your loan servicer.
- Consolidate your defaulted loans. You will need to contact the Direct Loan Consolidation Center to see if your defaulted student loans can be consolidated. Once your loans are consolidated by Direct Loans, you will receive a Loan Summary sheet that must be forwarded to the Office of Financial Aid.
- Rehabilitate your loans through your loan servicer’s loan rehabilitation program. Advantages of rehabilitation include:
-
- Your loans will no longer be considered to be in a default status.
- The default status reported by your loan holder to the national credit bureaus will be deleted.
- You will be eligible for the same benefits that were available on the loans before the loans defaulted. This may include deferment, forbearance, and Title IV eligibility.
- Wage garnishment ends and the Internal Revenue Service no longer withholds your income tax refund.
To learn more about loan rehabilitation please visit the Getting Out of Default page.
Once your loans are officially out of default status, you must submit documentation from your loan servicer to the Office of Financial Aid in order for your financial aid eligibility to be restored. Keep in mind that any incomplete or insufficient documentation will hold up your financial aid file.
| MSU Denver Cohort Default Rate Statistics |
|||||
| Cohort Fiscal Year | Official Default Rate | Number of Borrowers in Default | Number of Borrowers in Repayment | Enrollment Figures | Percentage Calculation |
| 2019 | 2.8 | 126 | 4,492 | 24,781 | 18.13% |
| 2018 | 6.8 | 350 | 5,130 | 25,004 | 20.52% |
| 2017 | 8.9 | 462 | 5,168 | 25,082 | 20.60% |
*The fiscal year 2019 national cohort default rate is 2.3 percent.
Resources
Visit My Federal Student Aid to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender for your loans.
The following are loan servicers for federally held loans made through the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program.
Loan Servicers
FedLoan Servicing (PHEAA)
1-800-699-2908
Granite State – GSMR
1-888-556-0022
Great Lakes Educational Loan Services, Inc.
1-800-236-4300
HESC/Edfinancial
1-855-337-6884
MOHELA
1-888-866-4352
Navient
1-800-722-1300
Nelnet
1-888-486-4722
OSLA Servicing
1-866-264-9762
Entrance Counseling:
Federal Student Aid
1-800-433-3243
https://studentaid.gov/entrance-counseling/
Master Promissory Notes:
Federal Student Aid
1-800-433-3243
https://studentaid.gov/mpn/
For everything you need to know about Direct Consolidation Loans, including an online application:
Direct Loan Consolidation Center
1-800-433-3243
Loan Consolidation
To set up payments on defaulted student loans that have been turned over to the Department of Education:
(Contact your servicer)
Getting Out of Debt
The Teacher Loan Forgiveness Program (Colorado Residents only) was created to encourage individuals to enter and continue in the teaching profession. For more information visit the Loan forgiveness programs for teachers Colorado website.
The Federal Student Loan Forgiveness Program (PSLF, Federal Program) was created to encourage individuals to enter and continue in the public sector. For more information visit the PSLF website.