Responsible Borrowing & Successful Repayment: What Every Federal Student Loan Borrower Should Know
Funding Your Education and Unlocking Your Potential
Federal student loans are an important investment in your future. Our goal is to empower you with the knowledge and tools you need to borrow responsibly, stay on track with repayment, and avoid default. Recent federal reforms—most notably the One Big Beautiful Bill Act (OBBBA)—strengthen repayment options and provide new opportunities for borrowers to manage their student loan debt successfully.
Below you’ll find a comprehensive overview of programs, tools, and support services designed to help you navigate your loan responsibilities with confidence.
1. Understanding OBBBA: New Benefits for Borrowers
The One Big Beautiful Bill Act (OBBBA)
Signed into law on July 4, 2025, the OBBBA simplifies federal student loan programs and introduces new repayment protections. These reforms allow schools to strengthen communication, update financial aid practices, and support borrowers in making informed decisions.
Key OBBBA‑related benefits for borrowers include:
Repayment Assistance Plan (RAP)
Launching in early Summer 2026, RAP is designed to help delinquent or at‑risk borrowers regain control through:
- Reduced monthly payments
- Waived unpaid interest
- Matching payments that lower your loan balance
Enhanced Loan Rehabilitation Opportunities
Beginning July 1, 2027, borrowers can rehabilitate a defaulted loan twice (previously limited to once). Rehabilitation restores loans to good standing and removes the default from your credit report.
Student Loan Default and Collections: FAQs
2. How We Support Responsible Borrowing
Transparent Financial Aid Packaging
Institutions are encouraged to review borrowing levels and provide clearer, more accurate aid offers as loan options and borrowing limits evolve under OBBBA.
Using Program‑Level Earnings Data to Make Informed Choices
Students and families can use the College Scorecard to review program‑specific outcomes such as:
- Median earnings
- Typical student debt
- Graduation rates
These insights help you select programs with strong long‑term value.
3. Entrance & Exit Counseling: Your First Step Toward Successful Repayment
Before receiving a federal loan, all borrowers must complete Entrance Counseling, which covers:
- How loans work
- Interest and repayment options
- How to avoid delinquency and default
4. Tools & Resources to Keep You on Track
Loan Simulator: Find the Best Repayment Plan
Use the Loan Simulator on StudentAid.gov to compare repayment plans and see how choices affect your long‑term costs. Learn More Here: Home | Federal Student Aid
Financial Literacy & Repayment Readiness Tools
Federal Student Aid provides resources to help you build good borrowing habits and understand the full loan lifecycle.
[fsapartners.ed.gov]
Repayment Toolkits for Borrowers
NASFAA provides ready‑to‑use borrower guides, social media content, and checklists to prepare you for repayment resumption and avoid pitfalls like scams.
[nasfaa.org]
5. Managing Delinquency & Avoiding Default
If You’re Behind on Payments
If you miss payments, you may become delinquent—and after 270 days without payment, your loan can enter default. Default can lead to:
- Wage garnishment
- Tax refund offsets
- Damage to your credit
[studentaid.gov]
School Outreach & Support for At‑Risk Borrowers
Schools are encouraged to:
- Conduct targeted outreach to delinquent borrowers
- Provide repayment plan guidance
- Encourage RAP enrollment
[creditandc…onnews.com]
Institutions can also use the NSLDS Delinquent Borrower Report (DELQ01) to identify and support students behind on payments.
[fsapartners.ed.gov]
6. If You Are in Default: Pathways Back to Good Standing
Loan Rehabilitation
Rehabilitation allows you to make agreed‑upon payments to restore your loan to good standing. OBBBA now allows two rehab opportunities starting in 2027.
The OBBBA changes this by allowing borrowers to rehabilitate a defaulted federal student loan twice.
This does not mean there are two different types of rehabilitation. Instead, it means:
✅ You can complete loan rehabilitation on the same loan up to two separate times.
If you rehabilitate a loan, later fall back into default, and meet the eligibility requirements again, you get one additional chance to rehabilitate that loan and restore it to good standing.
❗What This Means for Borrowers
- Rehabilitation #1: Restore loan to good standing, remove default from your credit report.
- Rehabilitation #2 (new under OBBBA): If you default again in the future, you have one more opportunity to repeat the rehabilitation process and again remove the default from your credit history.
📌 Important Note
Rehabilitation is still a limited-use option—each loan may only be rehabilitated twice total, not twice per default episode.
Consolidation Options
Borrowers may consolidate defaulted loans into a new Direct Consolidation Loan after making required arrangements with ED.
[studentaid.gov]
7. Your Role in Staying Informed
The Department of Education strongly urges institutions to ensure borrowers:
- Understand that loans must be repaid
- Review repayment options on StudentAid.gov
- Keep their contact information up to date
[bsk.com]
8. We Are Here to Help
Successful repayment starts with clear information, ongoing support, and proactive engagement. Whether you’re just starting your program or preparing for repayment, our financial aid and student support teams are committed to helping you make informed decisions every step of the way.
If you have questions about your loans, repayment options, or how to avoid delinquency and default, please contact our Financial Aid Office—we’re here to help you succeed.
FAFSA Codes
- Illinois Media School in O’Hare: 031018
- Illinois Media School in Chicago: 031018
- Ohio Media School in Cincinnati: E40449
- Ohio Media School in Cleveland: 030682
- Ohio Media School in Columbus: E01629
- Ohio Media School in Colorado: E00985
- Miami Media School: 030780
Pay Your Tuition Balance Here!
Resources to Fund Your Education
Federal Grants
Federal grants are federal funds that you do not have to pay back. The most well-known federal grant is the Pell Grant, which can be awarded to undergraduate students without a bachelor’s or professional degree.
Federal Loans
Federal loans, unlike federal grants, are federal funds that you do have to pay back. The benefit of federal loans over private loans is that you will often be able to get a much lower percentage rate on the interest you have to pay back.
Veterans Affairs (VA) Education Benefits
Covered individuals eligible for VA benefits may attend or participate in the course of education under Chapter 31 or GI Bill ® programs.
NOTE: A Covered Individual is any individual who is entitled to educational assistance under Chapter 31 Vocational Rehabilitation and Employment or GI Bill® benefits. GI Bill® is a registered trademark of the US Department of Veterans Affairs (VA).
Workforce Innovation and Opportunity Act
Individual campuses are also approved by their respective state board of education. Many of the schools are also approved for the Workforce Innovation and Opportunity Act (WIOA).
Monthly Payments
If you do not qualify for federal student aid or you are simply looking for other options, Media Schools offers the option to pay for your college education in monthly installments. This option will allow you to pay off your educational expenses interest-free.
College Completion Grant
Get ready to cash in on the opportunity of a lifetime! We’re offering a $3,000 grant designed especially for students who have earned a bachelor’s degree at an accredited 4-year college or university. And here’s the cherry on top: this generous grant is available to those who successfully complete their educational program at any of our Media Campus locations. Don’t miss out on this incredible chance to enhance your academic journey! Apply Now!
Default Prevention Assistance
The Beonair Network of media Schools has partnered with ECMC Solutions to provide student loan counseling and support to borrowers as they navigate federal student loan repayment. Contact ECMC Solutions by phone at 1-877-331-3262, or visit their website to make an appointment, connect through email, or web chat with a student loan counselor. The team at ECMC also offers a free webinar series to support borrowers as they navigate repayment.
Illinois Student Debt Assistance Act – Physical or Financial Hardship Withdrawal Policy
Consistent with the Illinois Student Debt Assistance Act, this policy establishes processes and procedures to assist students in limiting their student debt when a physical or financial hardship requires the student to withdraw from Illinois Media School after the 100% tuition add/drop deadline has passed, as well as implementing requirements of the Act as it pertains to access to student transcripts. This policy should be read in conjunction with other Illinois Media School policies related to student financial aid and student accounts. Go to Policy
Colorado Student Debt Assistance Act – Physical or Financial Hardship Withdrawal Policy
Consistent with the Colorado Student Debt Assistance Act, this policy establishes processes and procedures to assist students in limiting their student debt when a physical or financial hardship requires the student to withdraw from Colorado Media School after the 100% tuition add/drop deadline has passed, as well as implementing requirements of the Act as it pertains to access to student transcripts. This policy should be read in conjunction with other Colorado Media School policies related to student financial aid and student accounts. Go to Policy
Illinois Student Relief Update
Illinois Quarterly Budget and Expenditure Reporting
Miami Student Relief Update
Miami Quarterly Budget and Expenditure Reporting
Ohio Student Relief Update
Ohio Quarterly Budget and Expenditure Reporting
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