Stafford & PLUS Loan Repayment Benefits

As you know, due to unforeseen financial circumstances, we have been forced to modify our borrower benefits for loans that did NOT enter repayment status as of April 1, 2010.  These loans will not be eligible to receive either of the following benefit options:

               1.  NTHEA’s Rate Reduction Benefits Program*
                         •  2.5% interest rate reduction after 48 on-time payments

                2.  NTHEA’s Borrower Savings Program**
                         •  1% principal reduction after 12 on-time payments
                         •  2% principal reduction after 24 on-time payments
                         •  3% principal reduction after 36 on-time payments

* Applied to Stafford loans first disbursed on or after August 1, 1996 through June 30, 2007 and PLUS loans first disbursed on or after July 1, 2004 through June 30, 2007.
** Applied to Stafford and PLUS loans that were first disbursed or entered repayment status on or after July 1, 2007 through June 30, 2008.

As previously disclosed, NTHEA continues to reserve the right to change or discontinue borrower benefit programs at any time without notice, but previously qualified loans will not be affected. It is with deep regret that we were forced to exercise this option of modifying our benefits.  It is our intention to monitor our future financing costs, and if it should become feasible again, we will consider offering our borrowers additional discounts.

For borrowers whose loan(s) entered repayment status on or after April 1, 2010, below are the benefits you may be eligible to receive:

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. The interest rate reduction does not apply during any period of $0 monthly payments under an Income-Based Repayment plan. 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 the final $599 of the account will be forgiven once the balance is paid down to less than $600³

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. The .75% interest rate reduction benefit does not apply during any period of $0 monthly payments under an Income-Based Repayment plan. 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 federal loans first disbursed prior to July 1, 2008 and held by NTHEA at the time of forgiveness. The ELF Program is limited to one benefit per borrower; the borrower must be in repayment to be eligible and 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
• Up to the final $599 of the account will be forgiven once the balance is paid down to less than $600⁵

4) Applies to borrowers who enter repayment after August 1, 1999. The .25% interest rate reduction does not apply during any period of $0 monthly payments under an Income-Based Repayment plan. 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.
5) The Early Loan Forgiveness (ELF) Program applies to all federal loans first disbursed prior to July 1, 2008 and held by NTHEA at the time of forgiveness. The ELF Program is limited to one benefit per borrower; the borrower must be in repayment to be eligible and 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.