Why We Re Contacting You

Why We’re Contacting You

What You Need to Do

Please make a payment to bring these loans current. You can make a payment online at by telephone at (800) 663-1662; or by mail at the following address:

Department of Education

Cornerstone Education Loan Services

P.O. Box 105189

Atlanta, GA 30348-5189

If you are not able to make payments, please see the attached “Options for Title IV Loans” which explains payment options that may be available.

Additional Information

If these loans remain past due we will report information about the account to each national consumer reporting agency. Late payments, missed payments, or other defaults on the account may be reflected on your consumer credit report and adversely affect your consumer credit rating.

If you have questions we are available at the number above Monday through Thursday 6 a.m. to 7 p.m. and Friday 6 a.m. to 5 p.m., Mountain Time. We can also be reached by e-mail at . Our borrowers in the military may reach us toll-free at (844) 255-8326 or by email at

Loan Information

CornerStone Education Loan Services

OPTIONS FOR TITLE IV FEDERAL STUDENT LOANS

REPAYMENT OPTIONS

The following repayment options may be available to you. If you qualify, you can change repayment options at any time during your repayment period by contacting a CornerStone representative at (800) 663-1662.

Standard (FFELP and Direct) - On the Standard or Level Repayment plan, you pay the same amount for each installment payment throughout the entire repayment period, which cannot be more than 10 years. However, events like deferment or forbearance may cause changes to the monthly installment amount. This option is basically the fastest and most economical method of repayment.

Graduated (FFELP and Direct) – On this plan, you pay a small monthly amount (typically, interest only) at the beginning of the repayment period. Your payment will increase every two years and the length of your repayment period is up to 10 years. Although your payment amount will gradually increase with this plan, no single payment will be more than three times greater than any other payment. The amount of interest you pay over the life of the loan is higher with this option than with the Standard repayment plan.

Extended (FFELP or Direct) – To be eligible for this repayment option you must have loans that were first disbursed on/after October 7, 1998, and have an outstanding balance of principal and interest on your loans totaling more than $30,000. If you have FFELP Loans you must have more than $30,000 in FFELP Loans, if you have Direct Loans you must have more than $30,000 outstanding in Direct Loans. For example, if you have $35,000 outstanding in FFELP Loans and $10,000 in Direct Loans you can take advantage of this option for FFELP Loans but not your Direct Loans. You may choose either a Standard or Graduated repayment plan for an extended repayment period of 25 years. Your monthly payment will be lower, but the amount of interest you will pay over the life of the loan will be higher than with a Standard 10-year repayment plan.

Income-Based (FFELP and Direct) – On the Income-Based Repayment plan, your payments will be based on your Adjusted Gross Income (AGI), your family size, and state of residence. You must provide documentation to prove you have a financial hardship. Your installment amount may change every 12 months as you provide annual verification of your AGI and family size. The maximum repayment period may exceed 10 years and choosing this plan may qualify you for forgiveness of any remaining balance after 25 years. This repayment schedule is available for Stafford loans, PLUS loans made to graduate or professional students, and Consolidation loans (with no underlying loans made to parent borrowers).

Income-Contingent (Direct only) – On the Income Contingent Repayment plan, you must provide documentation about your Adjusted Gross Income (AGI) and family size. Your payment each month will be the lesser of (1) The amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor, or (2) 20% of your monthly discretionary income. If your payments are not large enough to cover the interest that accrues on your loans, the unpaid interest will be added to your principal balance (capitalized) once each year. Capitalization will not be more than 10% of the original amount you owed when you entered repayment; any interest above the 10% will continue to accrue but will not be capitalized. If your loans are not paid in full after 25 years of repayment, any unpaid amount will be forgiven. This repayment schedule is available for Stafford loans, PLUS loans made to graduate or professional students, and Consolidation loans.

Income Sensitive (FFELP only) – This repayment schedule provides a reduced monthly payment amount for a 12-month period. The payment amount is based on a percentage of your monthly gross income from all sources and the amount of interest that accrues on your loan(s) each month. You must request this schedule annually and supply all required documentation.

Pay As You Earn (Direct) – On the Pay As You Earn plan, your payments will be based on your Adjusted Gross Income (AGI), your family size, and state of residence. You must provide documentation to prove you have a financial hardship. Your installment amount may change every 12 months as you provide annual verification of your AGI and family size. The maximum repayment period may exceed 10 years and choosing this plan may qualify you for forgiveness of any remaining balance after 20 years. This repayment schedule is available for Stafford loans, PLUS loans made to graduate or professional students, and Consolidation loans (with no underlying loans made to parent borrowers).

POSTPONING REPAYMENT OPTIONS

If you can’t make any payments at all, then a deferment or forbearance might be the right choice to keep your loan(s) from entering default.

Deferment – Under certain circumstances you may qualify for a deferment (a postponement of your payments). The types of deferment available to you depend on when you took out your loans. Circumstances that may qualify for deferment include enrollment in school at least half time, active duty military service, economic hardship, or unemployment. Eligibility requirements are different for each type of loan, and documentation may be required. During periods of deferment accrued interest on your subsidized Stafford loans will be paid by the U.S. Department of Education, while unpaid accrued interest on your unsubsidized Stafford or PLUS loans will be capitalized (added to your principal balance) at the close of the deferment period. Capitalization of interest increases the total cost of your loans. There is no fee to receive a deferment.

Forbearance – If you are willing but financially unable to make your payments and do not qualify for a deferment, CornerStone may allow you to temporarily reduce the payment amount or temporarily postpone making payments. There is no fee to receive forbearance; however, unless you pay the interest as it accrues on both your subsidized and unsubsidized loans, it will be capitalized at the end of the forbearance period. Capitalization increases the total cost of your loans. Reasons for forbearance include but are not limited to periods when you are: experiencing a temporary financial hardship, serving in a medical or dental internship or residency program, serving in a national service position for which you receive a national service education award under the National and Community Service Trust Act of 1993, or when your monthly debt burden for FFELP or Direct loans equals or exceeds 20% of your total monthly gross income. You must request forbearance and provide any required documentation.

For more information on available deferment and forbearance options, login to your account online at Our interactive eligibility quiz can help you determine if your loan is eligible for a deferment or forbearance and provide guidance on the best options for postponing your payments. In some cases you may even be able to apply for a deferment or forbearance completely online.

FORGIVENESS or DISCHARGE

In certain circumstances you may qualify to be released from the obligation to pay all or part of a FFELP or Direct Loan. Forgiveness examples include the Teacher Loan Forgiveness Program and the Public Service Loan Forgiveness Program. Discharge examples include False Certification by the school, Identity Theft, and Total and Permanent Disability. Eligibility requirements differ for each type of discharge or forgiveness option. If you think you may be eligible, please contact a CornerStone representative. Please note: in most cases student loans are not dischargeable due to bankruptcy.

OFFICE OF THE OMBUDSMAN

CornerStone Education Loan Services strives to provide consistently high quality customer service. If you have a dispute concerning the terms of your loans, CornerStone has designated an ombudsman to assist you. We recommend you start here to resolve your concerns: (801) 321-7138. However, if you have worked with CornerStone but have been unable to resolve a problem directly with us, you can contact the Federal Student Aid (FSA) Ombudsman to resolve loan disputes and problems. If you require their assistance they can be contacted at the U.S. Department of Education; FSA Ombudsman; 830 Fifth Street, NE; Fourth Floor; Washington, D.C. 20202-5144. Toll free (877) 557-2575.