Student Loan Repayment Q & A
Below are Question & Answer situations that MHS feels might be helpful in understanding the $2,500 student loan component:
Q1: If I don’t graduate from college, will MHS help repay my student loans?
A1: No, students need to graduate to be eligible for any loan repayment.
Q2: If I graduate from college but have no CES funds remaining, will MHS help repay my student loans?
A2: No, MHS can only help repay loans if you have CES funds remaining after college graduation.
Q3: What does MHS need to begin the process of helping to repay my student loans?
A3: MHS needs 1) copy of college diploma, 2) final academic transcript of college grades, and 3) your student loan repayment schedule – all within six months of your graduation from college.
Q4: What is a student loan repayment schedule?
A4: A repayment schedule is an official arrangement from your student loan lender stating your overall loan amount, your monthly repayment and payment due date, and the address to mail your payment to. This repayment schedule is a real obligation, and there are very serious consequences for failure to meet it (such as default, garnishment of wages, and difficulty/inability to secure future loans).
Q5: Where does MHS send the loan repayment check?
A5: MHS sends the check directly to the student loan lender/servicer. No checks are sent directly to the student.
Q6: If I borrow more in loans than I have left in my CES account, how much will MHS help repay?
A6: MHS can only use the level of funds remaining in your CES account to help repay your loans. For example: If you borrow $10,000 towards standard college costs but only have $4,000 in CES remaining, MHS can only pay $4,000 of your student loans.
Q7: How many years can I take to graduate and still get help repaying my student loans?
A7: Students have six years from their CES activation date to complete their degree and receive CES help in repaying their student loans.
Q8: Will MHS help repay student loans for semesters that I was not eligible to receive CES funds?
A8: No, MHS will only help repay student loans from terms if you were eligible for CES funds during those terms. For example: If you were on Academic Suspension for a spring semester, MHS would not help repay any student loans taken during that spring term.
Q9: Will MHS help to repay loan debt that I used to pay books, supplies, travel, or other indirect college costs?
A9: No, MHS only supports normal TFRB (tuition, fees, room and board) costs under the CES program. So, any loans taken for other uses would not be eligible to be repaid. For example: If you borrowed the required $2,500 during the school year for TFRB and then borrowed another $1,000 for books and supplies that same school year, MHS would only help you repay the $2,500.
Q10: What if I graduate with an Associate’s degree and then start my Bachelor’s degree but never complete the Bachelor’s degree — what loans will MHS help to repay?
A10: MHS can only help repay loans for the Associate’s degree — the degree you completed. Since you never completed the Bachelor’s degree, those loans are not eligible for CES repayment.
Q11: Does MHS help repay loans taken during a summer term?
A11: Most students will be borrowing the required $2,500 in loans during the basic academic year (fall and spring semesters) so they will normally not be borrowing loans for standard costs during the summer. There may be some exceptions to this general rule that can be reviewed on a case-by-case basis.
Q12: What if I was a commuter and paid for my own meal allowance versus borrowing student loans to pay for my meal allowance?
A12: MHS would help reimburse you up to $2,500 per academic year, just like we would help repay student loans. Again, this assumes you were CES eligible, have graduated from college, submit the proper documentation, and have CES funds remaining in your account.
Q13: What if my family paid $2,500 of my bill each year so I didn’t need to borrow student loans?
A13: MHS would help reimburse your family for the expenses just like we would help repay the student loan if you would have borrowed them. Again, this assumes you were CES eligible, have graduated from college, submit the proper documentation, and have CES funds remaining in your account.
Q14: Will MHS pay any interest that accrues on my student loans?
A14: If, through no fault of your own, you qualify to receive all or a portion of your $2,500 loan as a Direct Unsubsidized Loan (accrues interest while you are in college), MHS will attempt to pay the interest after you graduate. This assumes you have enough CES funds to do so and meet all other requirements.
Q15: Are there any deadlines for filing the required documentation and getting my loan repayment assistance from CES?
A15: Yes, you have to submit all requests and documentation within six months of your college graduation date.
Q16: My student loan had an origination fee that I had to pay upfront. Will the CES loan repayment plan pay that fee?
A16: The origination fees are part of the original $2,500 you borrowed and are therefore eligible for CES repayment.
Q17: My school gave me a Perkins loan rather than/in addition to a Stafford loan. Will MHS pay this off as part of the repayment program?
A17: MHS will help to repay up to $2,500 per academic year in student loans for eligible college graduates. If you have Perkins loans, MHS can certainly direct some/all of your repayment funds to the Perkins loan, but we will not pay more than $2,500 per academic year towards your overall loans.