ONLINE COUNSELING:
REPAYMENT OF YOUR PROSPECTIVE TEACHER SCHOLARSHIP LOAN PROGRAM, TEACHER
ASSISTANT SCHOLARSHIP LOAN PROGRAM OR TEACHING FELLOWS SCHOLARSHIP LOAN PROGRAM
OR MILLENNIUM TEACHER SCHOLARSHIP LOAN PROGRAM
WHAT YOU MUST KNOW
Your Responsibilities
You made a
commitment to repay the funds you received from the state of North Carolina when you signed the
promissory note(s) for your respective scholarship loan program. The goal of
the scholarship loan programs is to provide financial resources to students
with the expectation that these resources will be repaid through employment
(work service, as specified by your scholarship loan program) in the state of North Carolina. Therefore, if you have
completed your program and pass any licensing requirements, the preferred
method for you to repay your scholarship loan is by working in North Carolina.
If you do
not meet the work service requirement, then your loan must be repaid in cash
with up to 10% interest on the principal amount borrowed, depending upon the
terms of your scholarship loan promissory note.
Building/Maintaining
Good Credit
Repaying
loan obligations on time helps you:
-
Maintain your credit rating in good standing.
-
Avoid extended interest payments.
-
Avoid negative activity reported to credit bureaus.
-
Avoid additional monetary or other penalties imposed by
a collection agency or by legal action.
-
Apply payments to only principal and interest, not to
penalties and fees.
Repayment
Service
cancellation or cash repayment must begin as specified by your scholarship loan
program.
Service
Cancellation
If you
have questions about service cancellation, please consult your scholarship loan
administrator.
WHAT IF
YOU CAN’T MAKE A PAYMENT?
If you ever
have financial difficulties making cash repayments, contact the NCSEAA as soon
as possible before your account becomes past due. Contact us immediately to prevent default! Call one of our Repayment Counselors at 800-700-1775, Ext. 312, or
919-549-8614, Ext. 312.
We are
aware that occasionally circumstances arise that make repayment more difficult
or sometimes impossible. Our goal is to help you keep your account in good
standing and avoid additional collection actions for unexcused non-payment.
Depending
on your program, you may be eligible for temporary reduced
monthly payments if you provide appropriate documentation to justify the
reduction.
DEFAULT MEANS SERIOUS CONSEQUENCES
If you
default – that is, do not repay your educational loan as promised, you will
lose your eligibility for any state-funded assistance for education. Defaulting
on a loan results in serious consequences that can affect you and your
co-signers for many years.
Defaulting
on a loan means:
The
default status of your loan may be reported to national credit bureaus. This may seriously
damage you and your co-signers’ credit ratings and ability to obtain additional
credit for car loans, home mortgages or credit cards.
You will
be subject to an increase in your total debt as a result of assessment of
projected collection costs. These costs could add 25% or more to the principal and
interest balance. Collection costs are prorated as a portion of each payment
you make toward the principal and interest balance. Payments are applied first
towards collection costs owed, then towards interest accrued, and, lastly,
towards the loan principal.
NCSEAA
will pursue these collection actions for repayment of a defaulted loan:
-
Refer your account to a collection agency;
-
Seize your State tax refunds;
-
Contact your employer, if you are a State employee, for
wage garnishment of up to 10% of your disposable income;
-
Transfer your loan to the State Attorney General’s
Office for collection/legal action.
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this information.