Stafford and PLUS Loan Repayment Benefits

As you are aware, our country experienced some very rough financial times due to the credit crisis, and unfortunately, we were not spared the effects. Therefore, it was with great regret that we were forced to modify our borrower benefits for loans that did not enter repayment status by April 1, 2010. Notification was sent on March 17, 2010 to all NTHEA borrowers who were affected by this change. To view a copy of this letter, click here.

In order to review a complete list of the borrower benefits that you may be eligible to receive, please select from the following two options below:

Select a Repayment Status below for more information
Loan(s) Entered Repayment Status prior to April 1, 2010
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.
Amount Borrowed Appr. Savings Repay. Months Reduced to:
$5,000 $77 119
$10,000 $154 119
$20,000 $306 119
$30,000 $460 119
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.
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 repayment (1% after 12 months, 2% after 24 months, and an additional 3% after 36 months of on-time payments)2
• 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.
Amount Borrowed Appr. Savings Repay. Months Reduced to:
$7,500 $1,634 102
$15,000 $2,669 105
$25,000 $4,050 106
$50,000 $7,500 107
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.
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 $6003

Check out the chart below to see how much you may be able to save.
Amount Borrowed Appr. Savings Repay. Months Reduced to:
$5,000 $984 104
$10,000 $1,368 109
$20,000 $2,137 112
$50,000 $4,444 113
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.
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.
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. The .75% interest rate reduction benefit does not apply during any period of $0 monthly payments under an Income-Based Repayment plan, and any $0 monthly payment under an Income-Based Repayment plan does not count toward the on-time payment benefit requirements. For borrowers with a loan(s) eligible to qualify for the .75% interest rate reduction for auto debit and/or the 1%-2%-3% principal reductions for on-time payments based on origination date or repayment status date, no other auto-debit or on-time payment benefit will be applied to the loan(s). 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 Family Education Loan Program loans first disbursed prior to July 1, 2008, acquired by NTHEA before July 1, 2016, 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); loan(s) paid off by consolidation are not eligible for the ELF benefit. The ELF benefit amount is based on the final balance once the loan(s) is paid down to less than $600. No refunds will be issued if an account is paid in full prior to reaching the “less than $600” threshold. 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.
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) Applies 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. Any $0 monthly payment under an Income-Based Repayment plan does not count toward the on-time payment benefit requirements. 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.
Loan(s) Entered Repayment Status on or after April 1, 2010
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:

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

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 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 repayment6

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.
Amount Borrowed Appr. Savings Repay. Months Reduced to:
$5,000 $77 119
$10,000 $154 119
$20,000 $306 119
$30,000 $460 119
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.
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 repayment7
• Up to the final $599 of the account will be forgiven once the balance is paid down to less than $6008
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 repayment9
• Up to the final $599 of the account will be forgiven once the balance is paid down to less than $6008
6) 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. For borrowers with a loan(s) eligible to qualify for the .75% interest rate reduction for auto debit based on origination date or repayment status date, no other auto-debit benefit will be applied to the loan(s). 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.
7) 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.
8) The Early Loan Forgiveness (ELF) Program applies to all Federal Family Education Loan Program loans first disbursed prior to July 1, 2008, acquired by NTHEA before July 1, 2016, 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); loan(s) paid off by consolidation are not eligible for the ELF benefit. The ELF benefit amount is based on the final balance once the loan(s) is paid down to less than $600. No refunds will be issued if an account is paid in full prior to reaching the “less than $600” threshold. 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.
9) 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.
NOTE: 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.