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Student Lending FAQs
Answers to your questions
We have compiled these questions using input from several different areas including Regions' Customer Service Department. However, please remember an "FAQ" section is simply a listing of frequently asked questions. If your question is not answered here, feel free to call us at 1-800-REGIONS (1-800-734-4667).

 

 

 

How do I start the Student Loan Application process?
First, contact the Financial Aid Office at the school you will attend. They will give you a Free Application for Federal Student Aid (FAFSA) which should be completed by you and mailed to the government agency listed for analysis. From the Student Aid Report mailed to you and based on information received on the FAFSA, the school determines your eligibility for financial aid, including a student loan. You will receive an Award Letter from the school indicating the type of loan and amount you will be eligible to receive. You should then complete the Borrower section of the Master Promissory Note and return to the bank for processing.

 

 

Once the student and school sections have been completed on the FAFSA, how do I know which student loan to apply for?
Stafford Loans (Subsidized and Unsubsidized) are available for dependent and independent undergraduate or graduate students at eligible institutions. Parent PLUS Loans are available to credit worthy parents of dependent undergraduate students who attend eligible institutions. Graduate PLUS Loans are available to credit worthy Graduate/Professional students at eligible institutions.

 

 

Should I apply for a student loan even if my parents' income appears too high to qualify ?
Yes, the need analysis system is used to determine a student's expected family contribution, regardless of income. A number of factors are taken into consideration to determine eligibility. If you do not qualify for a Subsidized Stafford Loan, you may qualify for the Unsubsidized Stafford Loan.

 

 

What is the Unsubsidized Stafford Loan ?
This loan program is available to eligible students, regardless of family income. The term "unsubsidized" means that the government does not pay the interest for you while you are enrolled. Interest is variable and changes annually on July 1. Interest accrues and must be paid quarterly unless you request your lender to add the interest to your loan principal; it will be capitalized at repayment. Principal payments are automatically deferred while you are in school at least half-time.

 

 

Can a parent get a student loan for their child?
Yes, the parent can get a PLUS Loan, as long as the student and parent meet the eligibility criteria. Credit checks will be made on all PLUS loan borrowers and only parents who do not have adverse credit history based on federal regulations are eligible. Checks are co-payable to school and borrower and disbursed in multiple disbursements to the school.

 

 

When do I begin repaying my student loan?
Repayment of a SUBSIDIZED Stafford Loan begins following a 6 month grace period which starts upon graduation, termination of education or less than half-time enrollment. Interest on this loan is paid by the government while the student is enrolled in school. With an UNSUBSIDIZED Stafford Loan, the principal payments are automatically deferred while you are in school and through a 6-month grace period. Interest is not paid by the government and is paid quarterly by the borrower. You may request that the interest be deferred until principal payments begin, but the interest will accrue and be added to the principal balance at the time of repayment. Parent PLUS Loans require payment to begin within 60 days of the last disbursement of the loan. Graduate PLUS Loans are automatically deferred while you are in school so you can focus on your studies and not worry about your student loans. There is no paperwork to complete you automatically qualify. As an added convenience, we will postpone repayment on your Graduate PLUS Loans to align them with your Stafford Loans. You'll then have just one check to write each month for your loans. Borrower is responsible for the interest that accrues during this time. Unpaid interest will be capitalized.

 

 

How much financial assistance can I receive from a student loan?
Based on the college or university's academic year:

STAFFORD LOAN/Dependent Students (Subsidized and Unsubsidized):
Academic year 1 - $3,500
Academic year 2 - $4,500
Academic years 3, 4 & 5 - $5,500

STAFFORD LOAN/Independent Students (Subsidized and Unsubsidized):
Academic year 1 - $7,500 (At least $4,000 of this amount must be unsubsidized)
Academic year 2 - $8,500 (At least $4,000 of this amount must be unsubsidized)
Academic years 3, 4 & 5 - $10,500 (At least $5,000 of this amount must be unsubsidized)
Graduate/Professional - $20,500 (At least $12,000 of this amount must be unsubsidized)

PARENT PLUS LOAN
The Cost of Attendance (COA) per child (minus any other financial aid) is the only cap on PLUS loan borrowing limits. Credit checks are required and Regions has the following adverse credit criteria for this loan (as determined by federal regulations):

  • The applicant is 90 days or more delinquent on the repayment of any debt.
  • The applicant had been the subject of a default determination on any debt, foreclosure, tax lien, repossession, wage garnishment, bankruptcy discharge, write-off of a Title IV debt during the 5-year period before the date of the credit report.

GRADUATE PLUS LOAN
Graduate/Professional students can borrower up to the Cost of Attendance (minus any other financial aid). Credit checks are required but no credit history will not effect the approval process.

 

 

What is the Graduate PLUS Loan?
The Graduate PLUS Loan is an affordable, accessible way to cover the entire cost of your graduate school education. You can get a Graduate PLUS Loan even if you have no credit history.

After completing the Free Application for Federal Student Aid (FAFSA), available online , and applying for the maximum amount available in Federal Stafford loans, consider the Graduate PLUS Loan with Regions Education Lending. With the Graduate PLUS Loan, you can fund your entire cost of education (less financial aid). This includes Tuition, Supplies, Room and board, Living expenses and books. Who is eligible for a Graduate PLUS Loan? US citizen or non-citizen permanent resident Students attending school at least half-time Credit-ready students. No credit is OK.

 

 

Who is considered an independent student?
An independent student must be at least 24 years of age by December 31 of the award year or meet one of the following criteria:

  • A graduate or professional student
  • A married student
  • A student who has legal dependents other than a spouse
  • A veteran of the Armed Forces of the United States
  • An orphan or ward of the court

 

 

Are there fees associated with a student loan?
Origination fees are included as a part of all student loans. Effective with loans guaranteed on or after May 1, 2006, Regions will waive the origination fee for students attending school nationwide. Parent and Graduate PLUS Loans will have origination fees deducted from loan proceeds.

Regions Bank will pay the 1% Federal default fee on the borrower's behalf on Stafford Loans or Graduate PLUS that are guaranteed by USAF or NELA from July 1, 2007 through June 30, 2008 and are serviced by Sallie Mae®.

 

 

Who actually approves my loan?
Approval is a joint process. The school determines the borrower's eligibility and eligible loan amount; the Guarantee Agency determines if the application meets our student loan policy.

 

 

How long does it usually take to get student loan funds disbursed for an approved loan ?
It takes approximately 5 days for the process from the time the loan application is received by Regions Education Lending until the funds are disbursed to the school. If the application is not completed correctly, it will be returned to the borrower and the loan approval time will be increased. Funds will not be disbursed earlier than the requested disbursement date from the school.

 

 

Can I qualify for more than one loan during one academic year?
If you are not eligible for the maximum loan amount on a SUBSIDIZED Stafford Loan, you may contact your school's financial aid office to discuss additional options such as: Undergraduate dependent students-Parents may apply for a Parent PLUS Loan for additional financial assistance. If the PLUS loan cannot be obtained, the student may be eligible for an UNSUBSIDIZED Stafford Loan. Undergraduate independent students – the UNSUBSIDIZED Stafford Loan. Graduate students: The Graduate PLUS Loan.

 

 

Can a student attending an out-of-state school apply for a student loan through Regions ?
Yes, as long as the school is eligible to participate in the Federal Family Education Loan Program and meets approval criteria for Regions.

 

 

If I have a question regarding my application as it is being processed, who do I call?
You can call Regions Education Lending at 1-800-858-7822. Please have your Social Security number available when calling.

 

 

How do I get deferment ?
A deferment can be requested by completing the "Request for Deferment" form obtained from the school or Loan Servicing Center. Borrowers are required to re-certify whenever the time period on the deferment form expires.

 

 

When I begin repayment on my student loan(s), how much are my monthly payments ?
The monthly payments will be determined by the total amount you borrow. The minimum payment amount is $50.00 per month and the normal length of repayment is 10 years. You should keep records on the amount you borrow in order to determine what your monthly payments will be and not overload your budget upon graduation.

 

 

Can I consolidate all my student loans?
For more information about loan consolidation, call Sallie Mae at 800-448-3533.

 

 

Why does Regions sell my loan to another agency ?
Selling your student loan allows Regions flexibility in our loan portfolio for additional loans to be made to new borrowers. It also allows us the opportunity to offer borrower services such as repayment incentive programs and 24/7 telephone and web support that we otherwise could not. It does not mean that you are in default, your credit is derogatory, or that we do not appreciate your relationship with our bank. Regions sells its loans to Student Loan Marketing Association (Sallie Mae) when a student enters repayment. If you have questions about your loan after it is sold, you may call 1-888-272-5543.

 

 

Can I have my monthly payment taken directly out of my checking or savings account ?
Yes, Sallie Mae (along with Regions) offers Direct Repay, a convenient way to repay student loans by transferring money from your checking or savings account to Sallie Mae for your monthly payments. This method of repayment may reduce your interest rate. Contact Sallie Mae at 1-888-272-5543 for more information.

 

 

Whom can I call to get more information about student loans?
You may contact Regions Education Lending at 1-800-858-7822, or you may call:

Contact Information
Loan Service Center
800-858-7822 		Donna Ready, Vice President, Regions Bank
601-987-1801
Bill Grizzard, Vice President
615-895-1830, Tennessee 		Jonna Gibson Baker, Account Executive
251-973-0409, Alabama
Anthony Bowles, Regional Manager
270-393-2313, IL/IN/KY/NC/TN 		Maggie Ward, Admin. Support
662-615-0505, All Areas
Carmen Concepcion, Account Executive
305-258-7687, South Florida 		Christie Payne, Sales Support FL
850-682-1516, FL/TX/AR/IA/IN/SC/NC
Trish Wallace, Sales Support
850-248-9423, All Areas 		Sandra Jackson, Accounting Assistant
601-987-1802, Jackson, MS
Jason Orgeron, Account Executive
225-673-2769, LA, East TX 		Jennifer Codemo-Thomas, Account Executive
770-614-0116, GA/SC
David Rock, Account Executive
727-772-0120, North & Central Florida 		Jackie Boone, Account Executive
601-992-5564, Mississippi
Clarissa Peereboom, Regional Manager
512-341-8362, TX/AR/LA 		Leslie DeFrates, Account Executive
217-488-6186, IL/IA/MO
Tammy Malone, Account Executive
479-632-3422, Arkansas 		Shannon Cross, Regional Manager
706-235-7318, AL/GA/MS/SC


 

 

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