Please feel free to contact ISM at 1-888-476-2002 or by email at
customersupport@ismloans.org
to discuss any questions or concerns you may have.
Q. I am having difficulty repaying my loans. What options do I
have?
A. There are many options available to you from graduated repayment
schedules to placing a deferment or forbearance on your account. Please contact
your student loan servicer to discuss what options are available to you.
Q. Will my credit be affected if I make a payment late?
A. Yes. Late payments may adversely affect your credit history.
Your loan status is reported to the major credit bureaus on a monthly basis.
Q. Why do I continue to receive delinquency calls and notices?
A. Federal regulations require due diligence attempts on all delinquent
loans. This is also a good time to advise you of your repayment options in order
to stop the delinquency and prevent your loan from defaulting.
Q. What is a deferment?
A. A deferment is a period of time during repayment in which the
borrower is not required to make monthly payments. A variety of deferments are available
for borrowers who meet certain qualifications. Generally, the borrower must supply
their lender with documents supporting their eligibility for deferment. An advantage
to deferments is that the federal government pays the interest on all of the borrower's
subsidized loans during the deferment period.
Q. What is forbearance?
A. Forbearance is a period of time during repayment in which the
borrower is not required to make monthly payments. The borrower is responsible for
all interest accrual during this period.
Q. Who pays the interest during a deferment?
A. The federal government pays the interest on all subsidized Stafford
loans. However, the borrower is responsible for any interest accrual on any unsubsidized,
PLUS, or Grad PLUS loans.
Q. If I am delinquent, will my lender automatically place a deferment/forbearance
on my account?
A. No. The delinquency will continue until you call and request
the deferment or forbearance.
Q. Can I make payments during a deferment or forbearance?
A. Absolutely. A deferment or forbearance relieves you of your
monthly payment obligation. However, it is always to your benefit to make any payments
you can during this period. All payments received will first be applied to any outstanding
interest and the remaining amount will be applied to your principal.
Q. Will I be notified once a deferment/forbearance is placed on
or removed from my account?
A. Yes. You will receive written notification from your student
loan servicer stating the type of deferment/forbearance that has been placed on
your account and when this condition will end. Also, prior to the end of this period,
you will be notified that your condition is about to end. You will also be given
your new payment amount and the next payment due date.
Q. What is default and how can it be prevented?
A. Your loans will go into default at 270 days delinquent. This
means that your loans will be turned over to the government agency that guaranteed
your loans for collection. You can prevent default by communicating to your service
provider any financial difficulties you may be experiencing. You may qualify for
a lower monthly payment, a deferment, or forbearance to assist you during this time.
It is beneficial to both you and your lender to work together to avoid default on
your loans.
Q. What is the FSA Ombudsman's Office?
A. The Ombudsman is a free service provided by the U.S. Department
of Education. They resolve disputes from a neutral, independent viewpoint. They
will recommend solutions, but do not have the authority to reverse decisions. They
are not an advocate or someone who will automatically take your side in a complaint.
It is their job to help develop fair solutions to complex and difficult problems.
Please log on to www.ombudsman.ed.gov for more information.
Q. When should I contact the Ombudsman's Office?
A. It is best to think of the Ombudsman as a last resort. They
will try to help when other approaches have failed. If you have a complaint, or
feel you have been treated unfairly, you should contact the company or office directly
involved. If after reasonable efforts you fail to get your issue resolved, contact
the Ombudsman's office.
Always remember if you have a question about anything on this site, feel free to
drop us a note at outreach@ismloans.org
and we’ll be happy to answer or elaborate on an item that is confusing or unclear.