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Federal Subsidized/Unsubsidized Stafford Loans
- Grace Period
- 30 Days Letter - Letter with
definitions of important terms.
- 60 Days Letter - Letter
outlining student responsibilities.
- 90 Days Letter - Letter
outlining and discussing the borrower's rights.
- 120 Days Letter - Letter
informing the borrower that payments will begin in two months. Also
inquiring about mail from lender or servicer.
- 150 Days Letter - Letter
stressing the importance of loan payment. Also informing the borrower
that the grace period will expire in 30 days. Inquire about repayment
schedule and book from lender or servicer. Inquire about the need for
deferment/forbearance.
- 180 Days Letter - Letter
informing the borrower that the grace period has ended and the payments
begin. Inquire if the borrower has received their repayment schedule
book.
Pre-Claim Intervention
- 90 Days Letter - Letter
advising the borrower of the perils of default.
- 120 to 150 Days Letter -
Letters of delinquency on loan. The borrower is advised of
consequences for default and instructed to make all efforts to avoid
defaulting.
- 150 to 175 Days Letter -
Letters of serious delinquency and possible claims in a short period of
time. Default is imminent.
- 180 or More Days Letter -
Letters that inform the borrower that the pre-claim period has ended and
that unless contact is made with the servicer the account will be defaulted,
along with details of the consequences for the defaulting student loan.
Borrowers will be
contacted by phone, if possible, to inquire about problems they may be
experiencing with servicers or lenders. A three-way conversation will be
established if needed. They are notified of their loan status and other
pertinent information. Explanation of forbearance, deferment and the
possibility of loan consolidation are given to borrowers.
Servicers are contacted on
a regular basis to inquire about changes of status for borrowers, also to
corroborate information given to McKenzie Financial Services Inc. staff by borrowers.
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