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As a college student, if things change regarding your status in school or contact information, it's a good idea to notify your loan servicing agency. Your college or university will notify them if you leave school, drop below a part-time status or graduate. However, if you transfer to another school and fail to contact them, they may start the grace period and subsequent repayment process on your student loans. Even if they can't find you to send you a billing statement, once the repayment process begins you are obligated to make the payments. By notifying them that you have transferred to another school and providing proof, you can extend your deferment period and avoid any problems.
Your loan servicing agency also needs to know how to contact you after you have begun the repayment period on your student loans. If you move or change your phone number, contact them immediately with correct information. Failure to do this could result in mail being lost or misdirected.
I work for a major student loan servicing center. Your tip is INCORRECT! It is never the responsibility of the school to report enrollment. Reporting any change to a student's enrollment is the responsibility of the student. This language is clearly stated in the verbage of the Master Promissory Note, or Promissory Note a borrower would sign to receive school funds. Your tip is incorrect and misleading. Students should be made aware it is their responsibility to notify the servicer of any changes. You should also be made to amend the part of your tip dealing with a student's demographic information. The way you phrased your statement would lead a student to believe it is merely a "good idea" to update their servicer with correct demographic information. Students should be made aware that if they fail to update the servicer of an address change and they do not receive bills, the delinquency on their account will still accumulate. Their account will be put into a skip-tracing status in an effort to locate the borrower, however, the delinquency will still accumulate. Once the account reaches the threshold for number of days delinquent, the servicer can and will process a default claim on them. Defaulting can have a serious, long-term impact on a student's credit, finances and life. That is more serious than mail being lost or misdirected. If you are going to offer tips to student's on debt repayment, you need to communicate to them how important it is to keep their information accurate and up-to-date.
|Jennifer Mathes, Ph.D.|