Federal Student Aid  

You can view any federal grants or loans you received at https://studentaid.gov/ . The FSA ID is the same one you used to file a FAFSA every year, and can be retrieved through the site if you forget it.   

FICO Score (Credit Score) 

FICO is the most common credit score used. The scores range from 300-850, with 850 being excellent. 

Your FICO score looks at five categories: 

• Payment History (35%): Whether or not you have paid past credit accounts on time. 
• Total Debt (30%): the total amount of debt that you have 
• Length of Credit History (15%): How long your credit has been active, how long since different accounts have been used, length of specific accounts, and the average age of all of your accounts. 
• Type of Credit Used (10%): This looks at your combination of credit cards, loans, mortgages, and retail accounts. Your student loans are part of your credit score. 
• New Credit (10%): What your new credit use is. Opening multiple accounts in a short amount of time looks risky. 

Everyone is eligible for a free credit report every year, which shows your debts, payments, and score. You can access this annually at: Free Annual Credit Report. 

There are other options to view your credit score, like CreditKarma, and if you have a credit card, most companies offer a snapshot of your credit score through their app.  

Loan Repayment 

Six months after graduating or dropping below part-time enrollment, your loans will go into repayment. You can see what your monthly payment would look like by using the Student Aid Loan Repayment Simulator: https://studentaid.gov/loan-simulator  

If you do nothing upon going into repayment, you will automatically be put into the Standard Repayment plan. This will divide your loan balance over 120 payments, and your loans will be paid off in 10 years.  

You can apply for an Income Driven Repayment Plan, and the monthly payment would be 10-20% of your income. These plans can take up to 25 years to pay your loans off.  

You can find information on all current federal repayment plans here: Repayment Plans | Federal Student Aid and you can apply for the Income Driven Repayment Plan here: Apply for or Manage Your Income-Driven Repayment Plan | Federal Student Aid 

Please note, these plans only apply to Federal Loans (Subsidized, Unsubsidized and PLUS). If you borrowed through an outside lender, you will need to contact them to set up your repayment plan. Alternative loans and the lender will show on your credit report.  

Understanding Collections: What It Means and Why It Matters 

If you have an unpaid balance with the school, you may hear that your account could be sent to collections. We know this can sound intimidating — but the goal of this page is to explain what it means, what happens, and what you can do. 

What Does “Collections” Mean? 

Collections is the process of working with a third-party company (a collection agency) to collect an unpaid debt. If your student account balance remains unpaid after multiple reminders and outreach attempts, the school may send the unpaid amount to a collection agency. 

Why Would an Account be Sent to Collections? 

Accounts are typically sent to collections when: 

• The balance remains unpaid after the due date 
• The school has attempted to contact you multiple times 
• A payment plan was not set up (or payments stopped) 
• The account remains unpaid after the school’s internal billing process ends 

What Happens if Your Account is Sent to Collections? 

If your account is placed in collections: 

• Your unpaid balance may be transferred to a collection agency 
• The collections agency may contact you by phone, email, and/or mail 
• You will be asked to pay the outstanding balance or set up a payment plan 

Depending on the situation, the collections agency may also: 

• Add fees or interest (if allowed by law and the agreement) 
• Report the debt to credit bureaus (which may impact your credit) 

How could collections impact you? 

Being sent to collections can have real consequences, including: 

Financial & Credit Impact 

• It could negatively impact your credit score 
• It can make it harder to qualify for: 
  • Apartments or housing 
  • Car loans 
  • Credit cards 
  • Future financing 

Additional Costs 

• You may owe more than the original balance due to fees or interest (if applicable) 

Stress & Time 

• Collections accounts can lead to frequent contact and ongoing follow-up until resolved 

The Most Important Thing: You Still Have Options 

If you have an unpaid balance, the best step is to contact us as soon as possible. In many cases, students can avoid collections by: 

• Paying the balance in full 
• Setting up a payment plan 
• Discussing available options before the account is transferred 

Need help? 

If you are unsure about your balance or want to discuss payment options, contact: 

Callie Zake by phone 517-264-7137 or email czake@sienaheights.edu 

You can also book your meeting using this link.
 

Student Collections FAQ 

What is a collections agency? 

A collections agency is a company that helps collect unpaid balances. If a student balance is sent to collections, the agency becomes the main point of contact for payment. 

Does being sent to collections mean I’m in trouble? 

No — it means your balance is unpaid and the school is moving the account into a formal repayment process through a third party. 

Will this affect my credit? 

It may, depending on the agency, the type of debt, and the reporting process. A collection account can potentially be reported to credit bureaus and impact your credit score. 

Can I still pay the school directly? 

In many cases, once the account is placed with a collection agency, payments should be made through the agency. If you are unsure, contact us right away before the account is transferred. 

What if I can’t afford to pay the full amount? 

You may still have options, such as: 

• A payment plan 
• Partial payment arrangements 
• Discussing next steps before the account is transferred 

The best thing to do is contact us as early as possible. 

What happens if I ignore collections calls or notices? 

Ignoring collections can make the situation harder to resolve. It may lead to: 

• More contact attempts 
• Additional fees (if applicable) 
• A longer-lasting impact on your credit 

What if I think my balance is incorrect? 

Contact the school immediately. We can review your account and confirm the balance before it is sent to collections. 

How long does a collections account stay on my credit report? 

This depends on the situation and credit reporting rules. If the debt is reported, it may remain on your credit history for years, even after it is paid. 

What should I do right now if I have a balance? 

If you have an unpaid balance: 

1. Review your account balance 
2. Contact us to ask about options 
3. Pay or set up an arrangement as soon as possible