Frequently Asked Questions

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Borrower

About CornerStone

CornerStone Education Loan Services was created by UHEAA to bring excellent customer service to students throughout the nation.

UHEAA is a subsidiary of the Utah State Board of Regents with the specific mission of assisting students with ties to Utah. CornerStone is a national service that was created to service federal student loans throughout the nation.

About Federal Loans

There are a couple ways to find out if you have a FFELP Loan or a Direct Loan:

  • Sign into Account Access. You will see a list of your loans with CornerStone. Account access provides details about each loan, including the loan type, the interest rate, the balance and more.
  • Visit the National Student Loan Data System (NSLDS). Check NSLDS to see a complete list of your FFELP Loans and Direct Loans. You’ll need your federal PIN to access the information.

Your responsibilities are the same whether you have a FFELP Loan or a Direct Loan:

  • Borrow only what you need.
  • Read your promissory note.
  • Pay on time.
  • Keep in touch with CornerStone.

You still have to repay your loan even if you don’t graduate.

Do You Have Transferred Loans?

Not necessarily. CornerStone will notify you of the loans we service. For additional details create an online account and sign into Account Access.

Please continue to make all payments for loans that remain with your previous servicer. If you aren’t certain about who services your loans, visit the National Student Loan Data System at nslds.ed.gov for a complete list of your FFELP Loans and Direct Loans and their servicers.

No, your transferred loans roll under the same account number. However, if you don’t have an account with CornerStone, you have to create one through: Create Account.

If you already have an account with us, your transferred loans roll under the same account number. If you do not have an account with us, we will assign you an account number. Look for your unique 10-digit number on all correspondence, billing statements, etc.

No. If you have a Stafford Loan (subsidized or unsubsidized), you get a 6-month grace period that begins the day after you graduate, leave school, or drop below half-time status and ends the day before your repayment period begins.

No, we received your current repayment plan from your previous servicer.

No, we received your due date information from your previous servicer.

Yes. Account Access allows you to make online payments from the bank account of your choice, schedule payments up to 60 days in advance, view details of your loan, and much more. If you haven’t signed up for an account yet, sign up today.

Yes. You need to enroll in paperless billing with CornerStone if you haven’t yet.

If your previous servicer approved your deferment or forbearance before your loan was transferred, you do not need to re-apply.

 

If you didn’t receive confirmation that your deferment or forbearance was approved before your loan was transferred, please contact us to find out what you need to do.

You don’t have to do anything. Your previous servicer will forward it to us.

Yes. You need to contact your service and let them know that CornerStone is the recipient of all future payments.

No. The 1098-E only applies to the time period after your loan was transferred. You’ll receive a 1098-E from every servicer where you paid $600 or more in interest.

As long as you’re enrolled more than half-time, your loan status is the same.

Yes. They will have their own account number that they can use to sign in.

Do You Have Direct Loans?

Origination fees are charged by the U.S. Department of Education when you borrow a Direct Loan. These fees are deducted when your loan is disbursed.

The origination fee is:

 

  • For loans awarded on or after December 1, 2013, the origination fee for Direct Subsidized or Unsubsidized Loans is 1.072%. If your loan was awarded after July 1, 2013 and before December 1, 2013, the origination fee was 1.051% and for loans awarded before July 1, 2013 the origination fee for Direct Subsidized or Unsubsidized Loans was 1%.

 

  • For loans awarded on or after December 1, 2013, the origination fee for Direct PLUS loans is 4.288%. For loans awarded on or after July 1, 2013 and before December 1, 2013, the origination fee was 4.204% and for loans awarded before July 1, 2013 the origination fee for Direct PLUS Loans was 4%.

Maybe. It depends on the type of loan you have:

  • Subsidized Loans – No. The government pays the interest on your loan while you’re in school.
  • Unsubsidized Loans – No. You don’t have to pay interest while you’re in school or while you have an in-school deferment. Although, paying interest early saves you money in the long run. Any interest you don’t pay during this period will be added to your principal balance (capitalized). Because interest is added to principal when it is capitalized, you will pay more over the life of your loan.
  • Parent PLUS Loans – Possibly. If you indicated on your Master Promissory Note that you wanted to defer your loan(s) while your student is in school half time or more, then no payments will be due, otherwise repayment starts immediately after disbursement. Please be advised that interest accrues from the day of disbursement, and any unpaid interest will be added to your principal balance when your loans enter repayment.

Direct Loans have the same repayment options as FFELP Loans, with two exceptions:

  • The income Sensitive Repayment Plan is not available for Direct Loans.
  • Several additional income driven repayment plans are available for certain Direct Loans, including Income Contingent Repayment, Pay As You Earn and Revised Pay As You Earn. Your required monthly payment is base on your eligible loan debt, household adjusted gross income, and family size. The payment amount may be recalculated annually and the maximum repayment period under an income driven repayment plan is 25 years.

You will receive an interest rebate of:

  • 0.5% of the principal amount of any Direct Stafford Loan first disbursed on or between July 1, 2010 and June 30, 2012.
  • 1.5% of the principal amount of any Direct PLUS Loan first disbursed on or between July 1, 2000 and June 30, 2012.

You have to make your first 12 monthly payments within 6 days of your due date to keep this rebate. If you don’t, it will be rescinded and added to your principal balance.

You are eligible for an interest discount of 0.25% for using automatic payments


Student Loans

About Student Loans

Subsidized means that the government pays the interest on your loans while you are in school and in periods of deferment. And for loans disbursed before July 2012, the government pays the interest while you’re in your grace period.

Unsubsidized means that you are responsible for paying the interest on your loans from the moment they are disbursed (even while you’re in school or deferment). Your interest can be capitalized (added to your principal) at specific times during the life of your loan.

Direct vs. FFEL

The main difference between Direct Loans and Family Federal Education Loan Program (FFELP) loans is the source of funding. The funds for FFELP loans came from financial institutions, whereas the funds for Direct Loans come directly from the U.S. Department of Education, from the U.S. Treasury.

Most repayment plans are the same, including standard repayment, extended repayment and graduated repayment; other repayment plans are specific to the loan program. Income-Contingent Repayment (ICR) is available only to Direct Loan borrowers and Income-Sensitive Repayment (ISR) is available only to FFELP borrowers. Income-Based Repayment (IBR) is a new program available to both loan programs. Pay As You Earn is a repayment program based on your income. For more information about repayment plans visit our Repayment Plans page.

Borrower Benefits

The largest borrower benefit offered by the Direct Loan Program is a 0.25% interest rate reduction on your student loans by signing up for automatic payments. This is the most noticeable borrower benefit. Other benefits include a reduction in the loan origination fee for making your first 12 payments on time. If you fail to make a payment on time (within six days of the due date) within the first 12 months, the origination fee will be added back to into the principal of your loan(s). If you have questions about the borrower benefits available to your loans contact CornerStone.


Loan discharge

What is Loan discharge?

Loan discharge is the process by which student loan debt can be eliminated, releasing the borrower from their obligation to repay their debt, provided they meet certain criteria.

There are many types of discharge, ranging from partial to full loan discharge. Below is a list of loan discharge types, as well as a short description of their eligibility requirements.

  1. Closed School Discharge
    • If your school closes while you’re enrolled or soon after you withdraw, you may be eligible for discharge of your federal student loan. For complete details on this loan discharge type or to apply, please see the School Closure Discharge Application, or feel free to reach out to one of our customer service representatives.
    • Please be advised, your discharged amount may be considered taxable income.
  2. Unpaid Refund Discharge
    • If you withdraw from school after receiving a loan, your school may be required to return part of your loan money. You may be eligible for a partial discharge of your Direct Loan or FFEL Program loan if you withdrew from school, but the school did not return the portion of your loan that it was required to return under applicable laws and regulations. Check with the school to see how refund policies apply to federal aid at the school. Only the amount of the unpaid refund will be discharged. For complete details on this loan discharge type or to apply, please see the Unpaid Refund Discharge Application, or feel free to reach out to one of our customer service representatives.
    • Please be advised, your discharged amount may be considered taxable income.
  3. False Certification or Unauthorized Payment/Signature Discharge You may be eligible for this discharge if you fall into one of these circumstances:
    • Your school falsely certified your eligibility to receive the loan based on your ability to benefit from its training, and you did not meet the ability-to-benefit student eligibility requirements (for example, you did not have a high school diploma or General Educational Development certificate).
    • The school certified your eligibility, but because of a physical or mental condition, age, criminal record, or other reason, you would not meet state requirements for employment in the occupation in which you were being trained.
    • If you were a victim of Identity Theft, and as a result student loans were obtained in your name, you may be entitled to a discharge of your obligation to repay these loans. For complete details on this loan discharge type, please reach out to one of our customer service representatives.
    • An individual from a school signed your name on the application or promissory note without your authorization, or an individual from the school endorsed your loan check or signed your authorization for electronic funds transfer without your knowledge, unless the loan money was given to you or applied to charges that you owed to the school.
    • For complete details on this loan discharge type or to apply, please view the False Certification Loan Discharge Applications, or feel free to reach out to one of our customer service representatives.
    • All funds discharged in this manner may be considered taxable income
  4. Total and Permanent Disability (TPD) Discharge
    • All TPD claims are currently handled by Nelnet. To learn more, please visit the TPD Website
    • All funds discharged under TPD on or after January 1, 2018 and on or before December 31, 2025 will be considered non-taxable income.
  5. Death Discharge
    • In the event that you or your student passes away, your family is not responsible to pay any portion of the remaining loan balance. Your loans will be discharged.
      • All funds discharged due to death on or after January 1, 2018 and on or before December 31, 2025 will be considered non-taxable income.

Your Information

Keeping Information Safe

Identity theft is when someone other than you uses your personally identifying information (PII) without your knowledge to commit fraud and/or other crimes. PII includes your name, Social Security number or credit card number.

To avoid identity theft, you have to understand the ways your personally identifying information (PII) can be stolen.

  • Dumpster Diving. Thieves will look for bills and other PII in your trash. To make it more difficult for thieves to find your information in the trash, shred any documents that include any PII before throwing it away.
  • Skimming. Thieves can store your credit card or debit card numbers when your card is being processed. Make sure that you only use your credit/debit cards at reputable places. If people are acting suspicious or there are strange attachments on the credit/debit card machine do not use your card.
  • Phishing. Thieves will send you e-mails, text messages or phone calls posing as a bank or other financial institution to trick you into telling them your PII. Do not give your information to anyone over the phone especially if you didn’t initiate contact with the other person.
  • Change your Address. Thieves will use change of address forms to get your mail sent to a different address where they can intercept it. Keep track of the mail you receive and regularly check the address on file where you do business.
  • Stealing. Thieves still use low-tech ways to get your information, like stealing your wallet or purse to find your PII. Be aware of your surroundings and take precautions to protect your belongings.
  • Pretexting. Thieves will contact your financial institution, utility company or other institution to get your PII. Keep track of the contacts you have where you do business regularly.

The first steps you should take are to file a police report, check your credit reports, notify creditors and dispute any unauthorized transactions. Unfortunately, you might not know anything is wrong until after your information has been used. Follow the steps your financial institutions and other businesses give you to restore your standing.

Student Loan Assistance Scam Basics

Many student loan debt relief companies may charge fees to provide services that the U.S. Department of Education and CornerStone can provide for free. Visit the Department Of Education’s blog for more information.

We offer a variety of services including but not limited to:

  • Lowering or postponing your monthly payment
  • Offering consolidation, forgiveness, and discharge guidance
  • Changing your repayment plan
  • Assisting in the process of filling out forms

Report the company and the actions that have occurred to your state Attorney General. To check the status of your account, please contact one of our Customer Service Representatives immediately at 1-800-663-1662.

Updating Your Account

You can update your information in Account Access. Make sure to update information any time your contact information changes so you will get important information from CornerStone.

If you change your address or telephone through our web site, it will update in our system within two hours. However, if the update was made at the end of a business day, the change will not occur until the following business day.

Because of federal regulation, we are required to document all name changes. To update your name send one of the following documents:

  • A copy of your Social Security card with your new name;
  • A copy of your driver’s license with your new name;
  • A copy of your marriage certificate (if that’s why your name changed);
  • A copy of your passport with your new name;
  • A copy of military orders, documents or papers with your new name;
  • A copy of court documents filed for a name change;
  • A copy of a divorce decree (if your name changed because of divorce).

Once we have one of these documents, we will update our records with your new name.

If you need to change your Social Security number please send one of the following pieces of documentation. Make sure that the documentation you send has the same name that we have on file.

 

  • Your Social Security card or written verification from the Social Security Administration;
  • One of your W2 forms;
  • Your driver’s license with the Social Security number on it;
  • Official military documents, orders or papers with your Social Security number.

Prepayment

No. You may prepay all or any part of your principal balance at any time. Any prepayment will satisfy accrued interest first then will be applied to principal
Log onto Account Access and navigate to Payments & Billing then to Loan Payoff. You will be directed through a four-step process where you will be able to make a payment to repay the balance of your loans.

Third Parties

Simply put, a third party is anyone other than the loan borrower or endorser.

Unless your parents are endorsers on your student loans, they are considered third parties and cannot receive information about your loan. You can give them access to specific information about your loan(s) by filling out the Third Party Authorization form and returning to to CornerStone. This also applies to anyone else who is not the borrower or an endorser on the loan.

We can provide the same information we provide to a borrower to any authorized third party. However, while a borrower can request any and all changes to his/her account, an authorized third-party can only request changes to a borrower’s address and telephone information.

No information about a borrower’s account can be given to an unauthorized third-party. Without the permission of the borrower, we cannot even confirm that a borrower has an account with us, or disclose any information specific to the borrower’s account. We can, however, provide general information about student loans.

No. Third-party authorization only entitles the authorized party to receive information. For someone other than the account holder to perform any actions on an account they need to have a Power of Attorney.

These are written agreements giving the third party legal permission to talk directly to your federal loan servicer and make decisions on your behalf.

Loan Information

Sign into Account Access and navigate to View Loan Details. Here you can find your current principal balance, unpaid interest and total current balance. You can also find the date the loan was disbursed, the type of loan, and your loan status. If you click on View Details, you can see the current interest rate on all of your loans.

Log onto Account Access and navigate to View Loan Details. Here you can find your current principal balance, unpaid interest and total current balance. You can also find the date the loan was disbursed, the type of loan, and your loan status. If you click on View Details, you can see the current interest rate on all of your loans.

Log onto Account Access and navigate to Payments & Billing and then automatic payments. If you are signed up for automatic payments your payment information will be displayed. If not, you will see a link to download the automatic payment application.

Log into Account Access and navigate to Payments & Billing then click on Payment History. You’ll be able to see how much has gone to principal, fees, interest, and the total amount paid. You can also view detail about each payment.

You receive one six-month grace period for the duration of your loans. Once you have used your grace period, you will not receive any additional grace periods.

Although we disclose your repayment terms on a standard, 10-year schedule, we also offer alternate payment plans. These include graduated, extended (for qualifying borrowers), Income-Based Repayment, and Income-Contingent Repayment.


Automatic Payments

Automatic Payments Basics

Yes, we offer automatic payments. It’s free, it’s convenient, and you will qualify for a 0.25% interest rate reduction.

We know your time is valuable, and automatic payments simplify the repayment of your student loans.

Each month you will receive a billing statement. If you are currently enrolled in AutoPay, there will be a message on your statement indicating your payment will be processed electronically. You can also log into Account Access and navigate to Payments & Billing then to Automatic Payments. If you’re already signed up, it will list your account information and the payment information. If you haven’t signed up, it will prompt you to provide your banking information.

The payment will be withdrawn on the next business day, but will be posted to our system on the due date in order to keep your account current. The payment will never be drawn before the scheduled due date.

You must allow at least three business days prior to your payment due date in order to stop an automatic payment from being drawn. For payment due dates that fall on a weekend, notification must still be received three business days prior to your payment due date to cancel the payment before the withdrawal process begins.

Signing Up For Automatic Payments

You can sign up for automatic payments through your online account. For more information, visit our Automatic Payment Page.

Your online request will be processed automatically; however, if you’ve already been billed for the current month, your automatic payments will not begin withdrawing until your next due date. Generally, bills are sent out 21 days prior to your due date. If you’ve already received your bill, please make a manual payment to cover your outstanding bill. Once you’re enrolled in Autopay, your online portal will indicate your upcoming direct debit date, and the amount to be withdrawn.

Updates To My Automatic Payments

If you need to change your current banking information, you will need to reapply with your updated information. If you’re looking to adjust the additional amount being withdrawn each month, or cancel your Autopay, give one of our Loan Specialists a call today!


Enrollment Questions

Your Enrollment Status

If your school has the capacity to update the National Student Loan Data System (NSLDS), they will automatically notify us of your enrollment status. If your school does not have access to the National Student Loan Data System (NSLDS), you will need to request that they send us an Enrollment Verification Report.

In School

If you chose to pay the interest on your unsubsidized loans while you’re in school, just make sure to keep paying. Also, if you move, get a new phone number, or change your e-mail address be sure to let CornerStone know so we know how to get in touch with you.

After School

First of all, CONGRATULATIONS! Graduating from college is a serious accomplishment. Here are some other things to keep in mind:

  • Make sure to keep CornerStone up to date if you change your address, phone number or e-mail address
  • If you have a grace period, start planning on how you will start paying your student loans.
  • We will send you information as you get closer to repayment. Please follow any instructions included in the correspondence we send.

If you have consolidated loans, you no longer have a grace period. If you have not consolidated your loans, you have likely already used your one allotted grace period.


Payments

Payment Basics

The amount of time it will take for you to pay off your loans depends on the amount you borrowed, your interest rate, and your repayment period. Click here to try our student loan payoff calculator to give you an idea about how long it will take before you pay off your loans.

When we receive a payment we apply the payment to any accrued interest and fees first and then to principal.

We do not take payments by credit cards or debit cards.

The four main ways to make a payment are AutoPay, online payments, payments over the phone and payments through the mail.

The easiest way to make a payment is by using AutoPay. You can set up your payment to be withdrawn on time each month without worrying about finding a stamp or remembering to call us. Plus you can get an interest rate reduction for using AutoPay. Click here for more information about using AutoPay.

Due to the unsecure nature of sending cash through the mail, we do not accept cash payments. However, you’re welcome to send a money order or personal check. You can also make a payment or over the phone.

Log into Account Access and select Payments & Billing then follow the instructions on that page to make a payment.

Yes. You can always make a payment free of charge by calling our customer service department.

Log into Account Access and navigate to Payments & Billing then click on Payment History. You’ll be able to see how much has gone to principal, fees, interest, and the total amount paid. You can also view detail about each payment.

If the payment was made by the borrower through Check-by-Phone, on our web site, or any other way the you initiated the payment, we will re-submit it to the your bank ONE TIME. That means you could have another NSF charge if it is returned again. If the payment was made through AutoPay we WILL NOT re-submit it to your bank.

Within 120 days of the date your school disbursed your loan money (by crediting the loan money to your account at the school, by paying it directly to you, or both), you may return all or part of your loan to us. You do not have to pay interest or the loan fee on the part of your loan that you return within 120 days of the date that part of your loan is disbursed. If you received an up-front interest rebate on your loan, the rebate does not apply to the part of your loan that you return. Your loan will be adjusted to eliminate any interest, loan fee, and rebate amount that applies to the amount of the loan that you return.

The two ways to make a payment are over the phone and through mail. If you’d like to make a payment by mail, our mailing address can be found on our Contact Us page.

If a co-borrower is making a payment over the phone with a representative, they will need be prepared to verify the following information about the primary borrower:

  1. Full SSN
  2. Full Name
  3. Date of Birth
  4. Bank routing and account number

Payment Timing

Your payment may still be in transit. It is currently taking us 30 days to receive payments from your previous servicer. Once we receive the payment, it will be applied to your account.

Postpone Payments

Please contact us to determine if you qualify for alternate repayment options.

Both a deferment and a forbearance postpone payments on your loans. During a deferment, the government will pay the interest on your subsidized loans. During a forbearance, interest will accrue on all of your loan types. One other difference is that deferment is an entitlement, so if you qualify for deferment you can receive it; forbearance is discretionary and is applied based on business decisions at CornerStone.

An unemployment deferment lasts for 6 month at a time. An economic hardship deferments last for 12 months at a time. You have an allotted 36 months of each type of deferment for your entire loan term. Forbearance is discretionary, and may last for up to 12 months at a time.

You may postpone your payments through deferment or forbearance. You can take the deferment/forbearance eligibility quiz by logging into Account Access, where you can apply online for forbearance and deferment. The forms are also available here or you may call us and request that the forms be mailed to you.

Delinquency

We report the status of your loan(s) at the end of each month. Negative marks will be submitted if the account is 90 or more days past due at the end of the month.

If the negative reporting was valid and verifiable, the credit reporting cannot be removed.

We will stop calling when we receive and process your forms. Until then, your account will still show up on our system as delinquent, and while your account is delinquent we are required to contact you.

You may postpone your payments through deferment or forbearance. You can take the deferment/forbearance eligibility quiz by logging into Account Access, where you can apply online for forbearance and deferment. The forms are also available here or you may call us and request that the forms be mailed to you.

Paid Ahead Status

If your account is current and you make a payment towards your loan(s) that is greater than your monthly minimum, the remainder of your payment will start to satisfy future bills.

For example: If your monthly payment is $50.00 and you make a $100.00 payment, your current bill, as well as next month’s bill will be satisfied.

When you’re in a paid ahead status, your billing statement will reflect as $0.00 due. The bill will also include language at the bottom of the statement informing you of the date and the amount due for your next payment.

You are still welcome to make payments while in a paid ahead status. Be advised that even though you aren’t required to make a payment, interest will still accrue daily. Any payments made in a paid ahead status will be applied to outstanding interest first, followed by your principle balance.

A benefit of being in a paid ahead status is that it can shorten your repayment timeline. Also, if you continue to make payments while in a paid ahead status, more of your payment will go towards the principle balance and in turn, you’ll pay less interest over the life of the loan.

While in a paid ahead status you aren’t eligible for forbearances or deferments; however, because your loan(s) is paid ahead, you shouldn’t need to request these options. You can skip the bills that are already satisfied without worrying about needing to postpone a payment. As soon as your loan(s) is no longer paid ahead, you will become eligible for postponement options once again.

You will also not be unable to change your due date while in a paid ahead status. Once the status has been lifted, you can change your due date by simply giving us a call!

Absolutely! If you would like to be removed from the paid ahead status, please contact us.

Be advised, in-order to remove you from a paid ahead status, your loans may be subject to re-disclosure. Your account is re-disclosed in order to recalculate your monthly payment based on your total loan balance and how many remaining terms (months) you have left to repay your loan(s). This may result in a lower monthly payment. If your monthly payment decreases, you are welcome to make a payment higher than your monthly minimum; however, this could cause you to enter a paid ahead status again.


Billing & Interest Questions

Bill Timing

All borrowers in repayment are sent a monthly bill. To make it easy to make a payment before your bill is due, we will send bills 21 days before the due date.

We will post your payment to your account within 24 – 48 hours after we have received it.

Billing Preferences

Log into Account Access and go to Account Profile then click on Change Paperless Enrollment then select the checkboxes next to the information you’d like to receive electronically; read and click that you agree with the agreement; and click Update Paperless Enrollment. Once you’ve updated your information, you’ll receive a confirmation e-mail. You can also make sure that your e-mail address is correct on the Account Profile page, take a minute to make sure it’s correct because if it isn’t you won’t be able to get our e-mails.

Understanding Your Billing Statement

Understanding Interest

Interest is the cost of borrowing money. It is usually represented as a percentage of the principal balance (the amount you initially borrowed). For example, if your interest rate is 5% and you borrowed $100, when you pay back the $100 you will pay 5 additional dollars ($105 total) for the privilege of borrowing the money.

Student loans are simple interest which means that you pay interest only on the principal balance. As your principal balance is paid off less interest will accrue on your account.

Interest accrues daily on your student loans.

Interest Rates

Interest rates for federal student loans are determined by federal law. Please visit NSLDS or log into Account Access for more information about your interest rates.

You can reduce your interest rate by choosing to enroll in automatic payments. We reduce your interest rate by 0.25% if you choose to have your payments automatically withdrawn.


Miscellaneous Questions

Capitalization

Capitalization is the addition of unpaid interest on a loan to the loan’s principal balance. Basically, the unpaid interest becomes part of the principal balance.

Capitalization occurs when your loan goes into repayment. For example, if you had a forbearance on your loans and the forbearance ended, any interest that accrued while your loan was in forbearance will be capitalized.

Endorsers

An endorser (or co-signer) agrees to repay the loan if the borrower does not. When a PLUS loan is denied due to the applicant’s adverse credit, the applicant (borrower) may get a credit-worthy endorser.

Co-borrowers (or co-makers) are jointly responsible for repayment of a loan. Co-borrowers are present only on spousal consolidation loans. Endorsers (or co-signers) are only responsible to pay if the borrower does not. Endorsers are present only on PLUS loans. When a PLUS borrower cannot get a loan because of poor credit, he/she may find a credit-worthy endorser to “co-sign” on the loan.

Taxes

In 2004, the IRS established new rules permitting tax deductions for capitalized interest paid by student loan borrowers. At the same time, the IRS also established rules permitting student loan borrowers to deduct a portion of any origination fees charged. You can find specific information about how to calculate the amount of capitalized interest and origination fees you may deduct by consulting IRS Publication 970 titled “Tax Benefits for Education,” available on the IRS website located at www.irs.gov. Your tax advisor can also help you with this issue.

Mortgage Questions

Yes. We can create that letter and send it in one to two business days. We can mail it or fax it to your mortgage lender. You can also print a loan verification letter right now by logging into Account Access.


Consolidation

Consolidation

Much like a consolidation loan for other types of debt, Federal Direct Loan customers can combine all of their student loans into one new loan that is guaranteed by the Department of Education. This allows customers to have their loans serviced in one place.

There are several pros and cons to consolidation. Please review the following list before making a decision:

Pros:

  • All loans serviced in one place
  • Extended terms (months ) to repay, which may result in a lower monthly payment
  • More repayment options
  • Expanded loan forgiveness options
  • No origination fees

Cons:

  • Extended terms may increase the total amount of interest paid
  • Loss of borrower-benefits (i.e. Interest discounts provided by your previous Guarantor)
  • Loss of qualifying payments towards IDR forgiveness
  • Loss of qualifying payments towards Public Service Loan Forgiveness (PSLF)

For additional information regarding consolidation, please visit https://studentaid.ed.gov/sa/repay-loans/consolidation

You can apply online at StudentLoans.gov. If you are interested in consolidating your loans, you may do so online at StudentLoans.Gov. If you have been happy with the service you have received thus far, you have the opportunity to select CornerStone, among others, as your new servicer.

The Department of Education has assigned Navient to originate and process all new consolidation loans for NFP’s (Not-For-Profits). Once your loan has been created, it will be transferred to the servicer you selected on your application.

You can send all consolidation related paperwork to the following address:

CornerStone
c/o Navient LCP – E1140
PO Box 8005
Fishers IN 46038 – 8005

The Department of Education has selected Navient to originate and process any new Consolidation Loans for all NFP’s (Not-For-Profits). They can be reached by any of the following ways:

The interest rate on a new consolidation loan is a fixed rate calculated from the weighted average of the loans you’re looking to consolidate. This rate is rounded to the next highest 1/8th of a percent, with a cap of 8.25%. The rate is fixed for the life of the loan.

Consolidation Loans enter repayment once they have been transferred to your servicer. If you have any questions regarding your repayment options, please contact one of our Customer Service Representatives.