Repayment FAQs

Deferment and Forbearance

All Loan Types

CFI reports your loans to the credit bureau every month regardless of the status of your loan(s). Keep in mind that a loan that is past due is reported as past due regardless of a pending deferment or forbearance. Therefore, you should continue to make payments on your loan(s) until CFI notifies you that your request has been approved.

All Loan Types

A short-term, temporary suspension of your payments or a reduction of your payment amount that is granted based on a request received from you. Forbearance is intended to help you if you're having financial difficulties and do not qualify for a deferment.

If CFI agrees to grant forbearance, you are responsible for the interest that accrues on your loan(s) during the period of forbearance. Although you are not required to make payments during a forbearance period, CFI encourages you to pay the interest during the forbearance period. CFI will capitalize the accrued, unpaid interest at the end of the forbearance period. Keep in mind that if you capitalize the interest, your principal balance increases and you will pay more interest in the long run.

All Loan Types

General Forbearance should only be used if absolutely necessary.

Pros

  • You do not have to make payments on your loans during the forbearance period.
  • You may avoid becoming delinquent by utilizing forbearance that is available to you.

Cons

  • The total amount of your debt may increase. Because you are responsible for the interest that accrues during the forbearance period, any accrued, unpaid interest will be capitalized (added to the principal balance of your loan) at the end of the forbearance period. In effect, you are borrowing more money to cover the interest that accrued during the forbearance period.
  • If accrued, unpaid interest is capitalized and added to your principal balance. At the end of the forbearance period both your scheduled monthly payment amount and the number of months required to pay your loans in full may increase.

All Loan Types

A short-term, temporary suspension of your payments that is initiated by CFI. You will be notified when an administrative forbearance is added to your loan(s) and you will have the option to decline the administrative forbearance period and make your payments instead.

During an administrative forbearance period, interest on your loans will continue to accrue. Although you are not required to make payments during a forbearance period, CFI encourages you to pay the interest during the forbearance period. In most, but not all situations, CFI will capitalize the accrued, unpaid interest at the end of the forbearance period. Keep in mind that if you capitalize the interest, your principal balance increases and you will pay more interest in the long run.

All Loan Types

A period of time during which you are not required to make payments on your loan because you meet the criteria for a specific deferment and have provided the required documentation. If you request a deferment and you qualify, CFI will grant the deferment, unlike forbearance, which is granted at the discretion of CFI.

One advantage of a deferment is if you have Subsidized Stafford loans, the federal government will pay the interest that accrues during the deferment period.

All Loan Types

Pros

  • You do not have to make payments on your education loan(s) during the deferment period.
  • You may avoid becoming delinquent during a deferment period.
  • If you have Subsidized Stafford loans, the federal government will pay the interest that accrues during the deferment period.

Cons

  • The total amount of your debt may increase. Because you are responsible for the interest that accrues on any Unsubsidized loans, both federal and private loans, during the deferment period, any accrued, unpaid interest will be capitalized (added to the principal balance of your loan) at the end of the deferment period. In effect, you are borrowing more money to cover the interest that accrued during the deferment period.
  • If accrued, unpaid interest is capitalized and added to your principal balance. At the end of the deferment period both your scheduled monthly payment amount and the number of months required to your loans in full may increase.

Contact the CFI Repayment Call Center at (919) 821-4743 or toll free at 866-722-2838 to discuss additional requirements and options available to you.

NC Student Assist Loan

In-School Deferment

  • Deferment is only available to NC Student Assist student borrowers who return to school on at least a halftime basis at an eligible non-profit Title IV institution after having already entered the repayment period.
  • Deferment is limited to a maximum of 36 months over the life of the Loan and should only be used if absolutely necessary.
  • Forbearance is intended to help you if you are having financial difficulties and do not qualify for deferment
  • Though it is not required, it is to your benefit to pay the interest that accrues during a deferment or forbearance period to avoid interest capitalization after the end of the period.

 

Federal Stafford Loan, Federal PLUS Consolidation Loan

Economic Hardship Deferment

  • Loans made on or after 7/1/1993.
  • You receive payments under public assistance program, serve in Peace Corps, or work full-time but make less than 150% of the poverty guidelines for your family size.

In-School Deferment

Military Deferment

  • While you are on active duty during a war or other military operation or national emergency or performing qualifying National Guard duty during a war, military operation or national emergency

Rehabilitation Training Deferment

  • Receiving rehabilitation services

Temporary Total Disability Deferment

  • Temporarily totally disabled where you are unable to work or earn money

Unemployment Deferment

  • Diligently seeking but unable to find full-time employment

All Loan Types

One of the major differences between a deferment and forbearance that you should keep in mind is that a deferment is automatically granted if you meet the requirements and submit a properly completed form whereas forbearance is granted at the discretion of CFI.

The choice depends on individual circumstances but a deferment is usually the better choice because with subsidized Stafford loans, the federal government will pay the interest that accrues during the deferment period.

All Loan Types

Contact the CFI Repayment Call Center at (919) 821-4743 or toll free at (800) 722-2838 to re-evaluate your options.

All Loan Types

You are responsible for the interest that accrues during the deferment period unless your loan(s) is a subsidized Stafford loan. In which case, the federal government will pay the interest that accrues during the deferment period.

During an approved forbearance period you are responsible for the interest that accrues on your loans. Keep in mind any accrued, unpaid interest will be capitalized and added to your principal balance.

All Loan Types

Yes, you can still apply for a deferment or forbearance unless you are in default. You should contact the CFI Repayment Center at (919) 821-4743 or toll free at (800) 722-2838 to explore any other options which might be available to you.

All Loan Types

Yes, you must continue to make your payments unless you have applied for and been granted a forbearance to cover the payments that will come due while you're awaiting approval of your deferment. You will need to continue to make payments to protect your credit. CFI will notify you when your deferment has been approved.

All Loan Types

Contact the CFI Repayment Call Center at (919) 821-4743 or toll free at (800) 722-2838 for assistance.

Loan Interest

NC Assist

No. Both the NC Student Assist Loan and the NC Parent Assist Loan have a fixed interest rate. This means the loan will remain at a fixed rate for the entire life of the loan and will not change.

Federal Family Education Loan Program (FFELP)

Your interest rate may be variable depending on the type of loan and when it originated. Refer to your promissory note(s) or contact CFI at (919) 821-4743 or toll free at (800) 722-2838 to discuss your loan interest rate.

EXTRA Education Loans

Yes, your interest rate is variable and may change quarterly.

All Loan Types

Beginning on the date of disbursement, interest accrues on a daily basis at the applicable interest rate on the unpaid principal balance. Payments are applied first to accrued, unpaid interest, then to the unpaid principal balance.

All Loan Types

Capitalized interest is accrued, unpaid interest that is added to the principal balance of the loan.

NC Student Assist Loan

Interest begins to accrue on the loan from the date of the first disbursement. You are provided with a monthly statement notifying you of the amount of accrued, unpaid interest. If you do not choose to pay the interest that accrues on your loan(s) while you are in school, during your 6-month post-enrollment grace period, or during a deferment or forbearance period, the amount of that accrued interest will be capitalized (added to the current principal balance of your loan). In effect, you are borrowing more money to cover the accrued, unpaid interest. You will save money by paying the interest as it accrues! If you cannot pay all of the accrued interest, we suggest you pay as much as you possibly can.

NC Parent Assist Loan

Interest begins to accrue on the loan from the date of the first disbursement. You are provided with a monthly statement notifying you of the amount of accrued, unpaid interest. If you do not choose to pay the interest that accrues on your loan(s) prior to conversion to repayment (the date of the final disbursement on the loan), or during a forbearance period, the amount of that accrued interest will be capitalized (added to the current principal balance of your loan). In effect you are borrowing money to cover the accrued, unpaid interest.*

You will save money by paying the interest as it accrues! If you cannot pay all of the accrued interest, we suggest you pay as much as you possibly can.

* Because you must repay your loan(s) within the maximum allowable repayment period of 120 months, your scheduled monthly payment amount may increase due to interest capitalization, or you may have to make payments for a longer period of time if you were originally scheduled to pay for less than 120 months.

Federal Family Education Loan Program (FFELP)

If you were not eligible for federal interest benefits when you received your loan(s), you are responsible for paying the interest which accrues while you are in school, during your post-enrollment grace period, and during deferment periods. You are always responsible for the accrued interest during forbearance periods.

If you do not choose to pay the interest that accrues on your loan(s) while you are in school, during your post-enrollment grace period, or during a deferment or forbearance period, in most cases we will capitalize this amount. This means that we add this interest to your principal balance. In effect, you are borrowing more money to cover the accrued interest.

If interest is capitalized, your Scheduled Payment Amount may increase or you may have to make payments for a longer period of time (but you must repay your loan(s) within the maximum allowable repayment period established by federal regulations). You will save money by paying the interest as it accrues! If you cannot pay all of the accrued interest, we suggest that you pay as much as you possibly can. If you elect to pay, please send the remittance advice portion of you statement along with your check. You can also make your interest payment by signing on to Manage My Loans at http://www.cfnc.org/MyLoans.

EXTRA Education Loans

Interest begins to accrue on the loan from the date of the first disbursement. You are provided with a monthly statement notifying you of the amount of accrued, unpaid interest. If you do not choose to pay the interest that accrues on your loan(s) while you are in school, during your 6-month post-enrollment grace period, or during a forbearance period in most cases we will capitalize the interest amount. This means that we will add this interest to your principal balance of your loan. In effect, you are borrowing more money to cover the accrued, unpaid interest. You will save money by paying the interest as it accrues! If you cannot pay all of the accrued interest, we suggest you pay as much as you possibly can.

All Loan Types

Please review the IRS website at https://www.irs.gov/taxtopics/tc456.html, review Pub. 970 Tax Benefit for Education, use the "Student Loan Interest Deduction Worksheet" available from the IRS Form 1040 or 1040A or contact your tax advisor.

How long is the repayment period?

NC Assist Loans

The repayment period is 120 months. However, there is a minimum payment for your loan(s) that may result in a repayment period less than 120 months.

Federal Family Education Loan Program (FFELP) Loans

The standard repayment period is 120 months. However, there is a minimum payment for your loan(s) that may result in a repayment period less than 120 months. Additionally, the repayment period for your loan(s) may be greater than the standard repayment period. For more information, see “What should I do if I am having trouble making my monthly payments?”

EXTRA Education Loans

There is a tiered repayment period based on the total EXTRA Education loan amount borrowed (i.e., total loan amount for all EXTRA Education loans) is as follows:

Minimum

Maximum

Repayment Period

Less than

$7,500.00

10 years

$7,500.00

$9,999.99

12 years

$1,000.00

$19,999.99

15 years

$20,000.00

$39,999.99

20 years

$40,000.00

$59,999.99

25 years

$60,000.00

and Above

30 years

However, there is a minimum payment for your loan(s) that may result in a repayment period less than 120 months.

Paying Off Your Loans

NC Assist Loans

The repayment period is 120 months. However, there is a minimum payment for your loan(s) that may result in a repayment period less than 120 months.

Federal Family Education Loan Program (FFELP) Loans

The standard repayment period is 120 months. However, there is a minimum payment for your loan(s) that may result in a repayment period less than 120 months. Additionally, the repayment period for your loan(s) may be greater than the standard repayment period. For more information, see “What should I do if I am having trouble making my monthly payments?”

EXTRA Education Loans

There is a tiered repayment period based on the total EXTRA Education loan amount borrowed (i.e., total loan amount for all EXTRA Education loans) is as follows:

Minimum

Maximum

Repayment Period

Less than

$7,500.00

10 years

$7,500.00

$9,999.99

12 years

$1,000.00

$19,999.99

15 years

$20,000.00

$39,999.99

20 years

$40,000.00

$59,999.99

25 years

$60,000.00

and Above

30 years

However, there is a minimum payment for your loan(s) that may result in a repayment period less than 120 months.

NC Assist Loans

For an NC Student Assist Loan, there is a six-month grace period after the borrower ceases to be enrolled at least halftime at an eligible non-profit Title IV institution. Repayment begins immediately following the six-month grace period.

For an NC Parent Assist Loan, repayment begins after the final disbursement of the loan has been made.

Federal Family Education Loan Program (FFELP) Loans

For a Federal Stafford Loan, there is a six-month grace period after the borrower ceases to be enrolled at least halftime at an eligible non-profit Title IV institution. Repayment begins immediately following the six-month grace period.

For a Federal PLUS Loan made to either parents or graduate students or Federal Consolidation Loan, repayment begins after the final disbursement of the loan has been made.

EXTRA Education Loans

For an EXTRA Education Loan, there is a six-month grace period after the borrower ceases to be enrolled at least halftime at an eligible non-profit Title IV institution. Repayment begins immediately following the six-month grace period.

Have Another Loan Type?

Please refer to the back of your promissory note for this information. If you should still have questions, contact CFI. Call us at (919) 821-4743 or toll free at (800) 722-2838. We're happy to discuss options available to you.

All Loan Types

Payments are first applied to any past due loan(s), then payments are allocated across all loan(s).

When a payment is applied, it is first applied to accrued interest on the loan and then to the outstanding principal balance.

For each multiple of the scheduled monthly payment amount received by us, your payment due date is advanced by one month, unless you request otherwise.

If you make only part of the scheduled monthly payment amount (partial payment), the payment due date will be advanced by one month after enough partial payments are received by us to cover the scheduled monthly payment amount.

All Loan Types

All payments are due and considered timely if received by the 10th of the month.

All Loan Types

The due date is the 10th of the month. If you would like to pay on a different date, we strongly encourage you to pay ahead one month, so you are paid one month in advance; then you can make your scheduled payment on any day of the month you would like without risk of being delinquent.

All Loan Types

Automatic Draft Information

  • You may choose to have your payments automatically drafted each month from an account at your financial institution. This is referred to as automatic draft or recurring payments.
  • If you elect this method, your payments will be automatically drafted on or about the 10th of each month, but no sooner than the 10th of each month, and will be applied to your loan(s) as of the 10th of the month (Effective Date).
  • In addition to the convenience and reduced chance of being late on a payment, if you elect automatic draft (recurring payments) as your payment method, you may receive an interest rate reduction of 0.25% which will save you money over the life of your loan.

Other Payment Methods Information

  • Payments made online are applied effective the date they are submitted.
  • Payments received from third-party processors are applied effective at the date that the file is received from the processor.
  • Payments mailed or personally delivered to College Foundation, Inc. will be applied as of the date the payment is received.

All Loan Types

You can pay your loan in full anytime without penalty. Sign on to Manage My Loans to get your pay-off amount and other information related to your loan(s) or call (919) 821-4743 or toll free at (800) 722-2838 to get your payoff amount.

Send your payment and any correspondence to the following specially-designated address if you are paying your loan in full early:

College Foundation, Inc.
P.O. Box 40856
Raleigh, NC 27629-0856

All Loan Types

There is no penalty for prepaying your loan. Prepayment will save you money due to reduced interest costs.

NC Assist Loans

If you're having problems making your monthly payments because of a short-term situation (for example, loss of job), you may qualify for a forbearance. Also if you have an NC Assist Student Loan, and you return to school as at least a half-time student, you may be eligible to defer your payments. This deferment has a maximum allowable time period of 36 month.

You should contact CFI to discuss your options. Call us at (919) 821-4743 or toll free at (800) 722-2838 or email us at [email protected]. We're happy to discuss options available to you.

Federal Family Education Loan Program (FFELP) Loans

If your payments are set up under the Standard Repayment Plan and you're in a situation where you anticipate continual problems making your monthly payments under this plan (for example, you've just started working in your chosen career), you may want to consider one of the three alternative repayment plans:

  • Income-Based Repayment Plan (IBR) - This repayment plan was developed to assist borrowers who are having difficulty making their payments because they have high student debt levels relative to their incomes. The program is available for Stafford Loans, PLUS Loans to graduate students, and Consolidation Loans with no underlying parent PLUS loans. Borrowers must exhibit a partial financial hardship (PFH) as defined by federal regulations to enroll in an IBR plan. PFH is based upon the borrower's income, poverty level for the borrower's state of residence, family size, and student loan indebtedness. Borrowers must recertify family size and income each year. This plan became available July 1, 2009. For more information on IBR, click the IBR link.
  • Graduated Repayment Plan - You start with a lower monthly payment at the beginning of your repayment period, then gradually increase it over the course of the repayment period.
  • Income-Sensitive Repayment Plan - You make a monthly payment based on a percentage of your monthly gross income.
  • Extended Repayment Plan - You extend payments for a lengthened repayment term of up to 25 years. (Available only to borrowers who received their first loan on or after October 7, 1998, and have more than $30,000 in outstanding principal and interest through the Federal Family Education Loan Program [FFELP]).

 

Income-Based Repayment (IBR) Calculator

Download Income-Based Repayment (IBR) PDF form

If you're having problems making your monthly payments because of a short-term situation (for example, loss of job), you may qualify for a deferment or forbearance. If you still have questions, please contact the CFI Repayment Call Center.

Contact the CFI Repayment Center for any questions regarding deferment, forbearance, or repayment options at (919) 821-4743 or toll free at (800) 722-2838.

Have Another Loan Type?

You should contact CFI to discuss your options. Call us at (919) 821-4743 or toll free at (800) 722-2838. We're happy to discuss options available to you.

All Loan Types

There is no grace period for late payments. Please contact us if you are having difficulty paying by the due date each month. Call us at (919) 821-4743 or toll free at (800) 722-2838. We're happy to discuss options available to you.

All Loan Types

If you are a student borrower, you may have payments deferred for a period of time if you return to school on at least a halftime basis.

All Loan Types

Yes, we report information on loans that are current and on loans that are delinquent to all national credit reporting agencies monthly. Therefore, maintaining your payments on an up-to-date basis can help you build a good credit score.

Default

All Loan Types

Default typically occurs when you consistently fail to make installment payments for a specified period of time during the repayment period. CFI may also declare your loan(s) to be in default if you fail to meet other terms of your promissory note or other written agreement(s) with CFI. If your loan(s) is declared to be in default, CFI will transfer your loan(s) to North Carolina State Education Assistance Authority (NCSEAA), the guarantee agency.

All Loan Types - Borrowers and Co-signers

Failure to repay your loan as promised - defaulting - can cause significant problems for you.

First, your loan will be turned over to the North Carolina State Education Assistance Authority (NCSEAA). NCSEAA is the guaranty agency for your loan. Your default will be reported to all national credit bureaus. Second, even if you default, collection efforts to do not stop. Eventually, the guaranty agency or the U.S. Department of Education (if you have defaulted on a Federal Family Education Loan) may also:

  • Sue you
  • Obtain a judgment for a lien against your current or future real property
  • Garnish your wages
  • Seize any NC Lottery winnings you may win
  • Notify your employer if you work for the state or federal government
  • Report to all national credit bureaus that you did not fulfill your loan obligation
  • Withhold your federal and state income tax refunds
  • Cause you to lose any professional license you may hold

 

A co-signer’s defaulted loan will be reported to credit agencies and any or all of the above actions may be taken against the co-signer as well.

Avoiding default is very important. If you run into difficulty making your loan payments, immediately contact us. If your loans have already been defaulted, don't give up hope, you CAN get back on track. Contact NCSEAA toll free at 800-544-1644 to discuss your options to repay your defaulted education loans.

General Repayment

NC Assist

Under certain circumstances, your loan may be canceled or forgiven. For example, your loan may be forgiven if you become totally and permanently disabled. Please contact us at (919) 821-4743 or toll free at (800) 722-2838 to discuss your situation.

Federal Family Education Loan Program (FFELP)

Under certain circumstances, your loan may be canceled or forgiven - for example, if you become totally and permanently disabled or die. Your loan may also be canceled if your school closes or if the school falsely certified your eligibility for the loan. Some loans may be eligible for partial or complete cancellation based on certain service or employment, such as teacher loan forgiveness.

There is also Public Service Loan Forgiveness (PSLF) program. 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. College Foundation does not service direct loans. The information on this program is provided for your convenience should you have direct loans serviced by other loan servicers.

Please contact us at (919) 821-4743 or toll free at (800) 722-2838 to discuss your situation.

EXTRA Education Loans

Under certain circumstances, your loan may be canceled or forgiven. For example, your loan may be forgiven if you become totally and permanently disabled. Please contact us at (919) 821-4743 or toll free at (800) 722-2838 to discuss your situation.

Federal Family Education Loan Program (FFELP)

If you have a loan at a school that closes while you are attending, you may be eligible to have your loan discharged. Please contact us at (919) 821-4743 or toll free at (800) 722-2838 to discuss your options. However, if you do not qualify for loan discharge, you must pay back your loan.

A co-signer or surety guarantees the loan. If the student borrower does not pay the debt, the co-signer or surety is required to pay. CFI will send monthly statements to both you and the borrower so you can stay informed about the status of the loan.

It is important that you understand that CFI reports statuses of all loans monthly to all major credit reporting agencies. We report current and delinquent loans on both the borrower’s and the co-signer’s or surety’s credit. How payments are made can have an effect on your credit score as well as the borrowers score.

Sureties are only associated with EXTRA Education Loans. Co-signers are only associated with NC Student Assist Loans only. Additional information on co-signing is available in the FAQs on the www.NCAssist.org website at: NC Assist Co-Signer FAQ

All Loans

Send your dispute correspondence to the specially-designated address:

College Foundation, Inc.
P.O. Box 40856
Raleigh, NC 27629-0856

NC Assist Loans

Yes. When your loan is in the repayment period and you pay your loan by automatic draft (auto-draft) from your bank or credit union account, we will reduce your interest rate by 0.25%. Contact us at (919) 821-4743 or toll free at (800) 722-2838 if you have any questions

All Other Loans

Your loans may be eligible for various incentives. Contact the CFI Repayment Call Center at (919) 821-4743 or toll free at (800) 722-2838 for assistance.

All Loans

You may be able to identify an individual to act on your behalf. Contact the CFI Repayment Call Center at (919) 821-4743 or toll free at (800) 722-2838 for assistance.

All Loans

To sign up for automatic draft, go to “Things To-Do” on the homepage of www.CFNC.org/MyLoans