Organize Your Loan Records
Anecdotal information form students and financial aid administrators suggest that most borrowers
do not keep very good records of their debts. The resistance on the part of borrowers is quite understandable
given the day-to-day academic and personal pressures that most college and graduate students experience.
It is natural for you not to want to add to these stresses with thoughts of collecting, reading and sorting
your loan papers, not to mention keeping a spreadsheet of what you owe.
As natural as this reaction may be, it is unproductive for three reasons:
1. It is impossible to manage a loan portfolio if you don't have critical information about its characteristic,
such as the amount borrowed, interest rates, and the addresses of lenders. In fact, data indicate the chances
of defaulting are less if you have certain basic information about what you have borrowed.
2. An unspecific awareness of what you have borrowed probably creates more anxiety than having this
information, because the unknown is always more frightening than the reality. Aside from making you
feel anxious, being unaware creates more real problems because you don't have enough information to take
action when it is necessary.
3. The longer you wait to begin collecting these data, the more difficult and time-consuming it will be
for you. In addition, the chances of error greatly increase the longer you put off organizing your loan files.
The following step-by-step exercise explains how to collect and organize your loan records:
1 . Scour your desktop and file drawers, storage boxes, and anywhere else you may have put documents related
to your educational loans. These documents include, but are not limited to application forms, promissory
notes, disclosure statements, correspondence form lenders, and information form the financial aid office that
can help you figure out how much you have borrowed.
2. Having gathered all the undergraduate and graduate loan documents in your possession, sort them by loan
program. The federally sponsored loans include:
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Health Education Assistance Loan (HEAL)
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Federal Stafford Loan (previously called GSL)
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Federal Supplemental Loans for Students (SLS)
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Health Professions Student Loan (HPSL)
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Nursing Student Loan (NSL)
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Federal Perkins Loans (previously called,
NDSL)
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Loans for Disadvantaged Students (LDS)
You also may have school-sponsored loans, or loans from private programs and other outside sources.
It is necessary to find and sort out the paperwork for these loans, too.
3 . After you have collected and sorted your papers, use file folders, or an accordion file(s), to organize
the documents according to loan program and lender/holder. Sometimes--not always--you may have loans
outstanding form the same program but to more than one lender.
4 . Use a safety deposit box/secure file cabinet for original documents, just in case.
5. Use a spreadsheet to list by academic year each loan you have borrowed according to type
(e.g., Stafford, Perkins or Alternative), the interest rate and the amount borrowed.
If your set of documents is not complete, it is possible that your list is also incomplete.
For example, the list may not include all your loans, or may include the wrong amount owed.
It is important to have a complete and accurate accounting of your loans. Inaccurate records can
lead to underpayment and overpayment. It can happen to you as it has happened to others. Underpayment
leads you into default; overpayment prevents you from using cash for other purposes.
A little detective work is needed if you have doubts about your loan records. One way to check your
information is by comparing your spreadsheet with the records in the financial aid office of the
school(s) you are attending or attended. Discrepancies between your spreadsheet and their records
will give you a place to begin confirming and updating information by contacting your lenders/holders,
their servicers, or the guarantee agency(ies).
6 If your are still in school, maintain your records by updating your spreadsheet every time you receive
a loan, and by reading and filing all your papers. Then use record your loans by type and lender/holder,
and update the name and address of your lenders/holders.
7. If your are about to graduate you should total your loans by type (e.g., Stafford, Perkins, HPSL)
and lender/holder, specifying the interest rate, noting the loan account number, and record the name
and address of the lender/holder. Don't forget to update the lender/holder information in case the
lender changes address or sells your loan. Then complete the calculation of your estimated monthly repayments.
Be patient as you produce your loan database. Unfortunately, there is no short cut. It does require gathering,
sorting and organizing your records. However, without this information, it is absolutely impossible to develop
a viable debt management plan that will preserve your financial stability and integrity. Also, take heart in
knowing that:
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Once your have established the foundation for your database, it is easy to maintain and takes
little time; and
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Your are not alone--if you have questions or need help, get in touch with your financial aid office,
or your lenders/holders and servicers.
