If you received a student loan from the Foundation, here are answers to some Frequently Asked Questions about loan repayment.

When must I begin repaying my student loan?

If you were awarded a Foundation Undergraduate Student Loan, you must begin repaying the loan six months after you graduate or separate from school. If you received a Harold R. Schwalenberg Medical School Loan, you must begin repaying the loan eighteen months after you graduate from medical school.

How will I know when my first payment is due?

You will be notified in writing of your repayment obligation and a statement will be mailed to your last address on file on or around the first day of the month in which your payment is due. Monthly Loan Payments are due to the Scholarship Foundation office by 12:00 p.m. (noon) on the 15th of each month. Payments received after this time are considered late. It is your responsibility to notify the Foundation of any address change by emailing loans@sbscholarship.org .

Do I need to repay the entire loan amount I borrowed?

Carefully review the terms of your undergraduate student loan agreement. Starting with Foundation loans made in May 2010, 100% of the loan amount borrowed must be repaid. Prior to this date, the terms of undergraduate student loan agreements stated that when 50% of the loan has been repaid in a timely manner, the remaining balance is forgiven and the loan is considered paid in full. Note: failure to make timely and full payments or failure to respond to Foundation inquiries means that your account will be sent to a collection agency and interest will accrue.  For students with undergraduate loans awarded prior to the 2010-2011 academic year, you will be responsible for repaying 100% of the total amount borrowed if your account is sent to collections.

Under the terms of the Harold R. Schwalenberg Medical School Loan, if you continue to practice substantially full-time as a general/family practitioner, or as an internist, you are entitled to a matching credit of 50% of the total loan amount borrowed.

What will my monthly payment be?

Your monthly payment is set at one-percent of the total loan amount you borrowed, or $50, whichever is the greater amount. The Foundation does not charge interest on loans unless your loan is sent to a collections agency (please see above).

Am I eligible to defer repayment on my student loan?

You may be eligible for deferment of your Foundation Student Loan repayment based on one of these five reasons:

1. You have been notified that you are expected to begin repayment of your student loan, but you are still full-time enrolled in an approved college or vocational school program. Please note, however, that the amount of time an undergraduate loan may be deferred for graduate school enrollment (all except full M.D. programs) is limited to four years.
2. You are in an unusual economic hardship situation.
3. You have a documented illness or injury that prevents you from working or attending school for an extended period of time.
4. You will be serving for a period of time in the Peace Corps, AmeriCorps, or on a mission related to your church.
5. You are in a branch of the U.S. Military Reserves and you have been called to full-time active duty status.

If you believe that one of these reasons applies to your situation, please click on the following link and print out and then complete the PDF Loan Deferment Request Form.

Make sure that you attach the required verification documents and mail the form and documents to: Scholarship Foundation of Santa Barbara, P.O. Box 3620, Santa Barbara, CA 93130.

You will receive a written response granting or denying your request for deferment. It is your responsibility to send the Loan Deferment Request Form with verification of enrollment or a medical excuse prior to when your first payment is due and to meet all loan obligations while the deferment request is being reviewed. Deferments are granted on a year-to-year basis. Students need to submit a new Loan Deferment Request Form and required documents each year.

Can I apply for additional scholarship and/or loan funding from the Foundation?

Recipients are eligible for up to four years of undergraduate scholarship and loan funding, and up to four years of additional funding through our Medical/Graduate Program (Medical/Gradate scholarship or Medical loan).  If you will be full-time enrolled in a TItle IV-approved school and have not received four years of scholarship or four years of loan funding, please click on the Apply for a Scholarship & Loan link in the menu above.  To determine your application type, please follow the links to our online application and look for further details. 

Can the Foundation debit the student loan payment directly from my checking account each month?

The Foundation is not able to process direct debit transactions at this time. However, you can make online arrangements with your bank to send auto-pay checks from your bank account to the Foundation each month. Request that your bank include your loan number on all correspondence.

How do I find out the current balance on my student loan account?

Call our office at (805) 687-6065 or e-mail your request for balance information to loans@sbscholarship.org. When you contact the Foundation about your loan, please have your loan number ready and include your loan number on all correspondence.

How will I know when my student loan is paid in full?

The Foundation will notify you in writing the month after which your account is paid in full.

What if my question is not addressed in any of the above topics?

Call the Foundation office at (805) 687-6065 or e-mail loans@sbscholarship.org. Remember: it is your obligation to keep the Foundation informed of your current address and contact information. Any change in your address or other contact information should be reported immediately.