Stafford & PLUS Loan Repayment Benefits

For Stafford and PLUS loans first disbursed on or after 7/1/08 that are serviced by HESC on behalf of your lender (including NTHEA):

• 0.25% interest rate reduction for signing up for auto debit once the loan is in repayment¹

Check out the chart below to see how much you may be able to save over the life of your loan(s) just by signing up for auto debit.

Savings are based on a 6.8% fixed interest rate Stafford loan, 10-year repayment term (120 payments), and a standard repayment plan. Savings are applied to the principal balance outstanding so that payment amounts will not change, but the repayment period is shortened; however, the option to lower monthly payments is available.

1) Applies to Stafford and PLUS loans that are first disbursed on or after July 1, 2008. NTHEA or your lender reserves the right to change or discontinue the program at any time without notice, but previously qualified loans will not be affected.

For NTHEA owned Stafford and PLUS loans first disbursed or that enter repayment status between 7/1/07 thru 6/30/08:

• 0.75% interest rate reduction for signing up for auto debit once in repayment²
• Up to 6% in total principal reductions for making on-time payments once in repayment²
• 1% after 12 months, 2% after 24 months, and an additional 3% after 36 months of on-time payments.
• Up to the final $599 of the account will be forgiven once the balance is paid down to less than $600³

Check out the chart below to see how much you may be able to save.

Savings are based on a 6.8% fixed interest rate Stafford loan, 10-year repayment term (120 payments), a standard repayment plan, participation in auto debit through our servicing agent and the maximum ELF benefit. Savings are applied to the principal balance outstanding so that payment amounts will not change, but the repayment period is shortened; however, the option to lower monthly payments is available.

2) Applies to Stafford and PLUS loans that are first disbursed or enter repayment status on or after July 1, 2007 through June 30, 2008. Principal reductions are calculated on the total principal amount outstanding after the 12th, 24th and 36th full scheduled qualifying payment is made. NTHEA reserves the right to change or discontinue the program at any time without notice, but previously qualified loans will not be affected. Other terms and conditions may apply.
3) The Early Loan Forgiveness (ELF) Program applies to all loans held by NTHEA at the time of forgiveness. The ELF Program is limited to one benefit per borrower, borrower must be in repayment to be eligible, and the borrower must have made at least one full payment on the loan(s). NTHEA reserves the right to discontinue or make changes to the ELF Program at any time without notice, but previously qualified loans will not be affected. Other terms and conditions may apply.

For NTHEA owned Stafford and PLUS loans first disbursed prior to 7/1/07:

• 0.25% interest rate reduction for signing up for auto debit once the loan is in repayment⁴
• 2.5% interest rate reduction after the initial 48 monthly payments are made on-time⁵
• Up to the final $599 of the account will be forgiven once the balance is paid down to less than $600⁶

Check out the chart below to see how much you may be able to save.

Savings are based on an 8.25% Stafford loan, 10-year repayment term (120 payments), a standard repayment plan, participation in auto debit through our servicing agent and the maximum ELF benefit. Savings are applied to the principal balance outstanding so that payment amounts will not change, but the repayment period is shortened; however, the option to lower monthly payments is available.

4) Applies to borrowers who enter repayment after August 1, 1999.
5) Applies to Stafford loans first disbursed on or after August 1, 1996 and PLUS loans first disbursed on or after July 1, 2004.
6) The Early Loan Forgiveness (ELF) Program applies to all loans held by NTHEA at the time of forgiveness. The ELF Program is limited to one benefit per borrower, borrower must be in repayment to be eligible, and the borrower must have made at least one full payment on the loan(s). NTHEA reserves the right to discontinue or make changes to the ELF Program at any time without notice, but previously qualified loans will not be affected. Other terms and conditions may apply.