Temporary Repayment Arrangement

If you are like most of us, money does not grow on trees. Unexpected expenses, such as a car repair or medical bill can occur. Or maybe you have changed jobs, relocated, and are having to put down first and last month rent deposits.

If you are having difficulty making your MU loan payment please contact us immediately! Our staff is here to assist you. Do not let your loan go into default! Your loan might qualify for a temporary repayment arrangement (TRA).


What is a TRA?

The purpose of a TRA is to give you temporary help in regards to your MU student loan account. TRA is a status where you are allowed to pay a smaller amount on your monthly loan payment for a specific period of time; normally 6 months. At the end of the TRA period all past due amounts must be caught up. To request a TRA, complete our TRA form in full and return it to our office along with a copy of your latest tax return and copies of your last two paycheck stubs. If your TRA request is approved, your Student Loan Collections Advisor will contact you.


How does a TRA Work?
An example TRA:

• Your normal monthly loan payment is $30/month.
• Currently, you can only afford $20/month.
• We put your loan in a TRA for $20/month for 6 months.
• At the sixth month, assuming you were current at the beginning of the TRA, you would have a past due amount owed of $60. This $60 is the difference between what you should have paid each month ($30) over the past 6 months, and what you actually paid each month ($20) over the past 6 months.
• To catch up the past due amount on your TRA, your last (sixth) TRA payment would be for $80. This is the $20 TRA payment and the $60 past due amount.

What if I need more time than 6 months to bring my loan current?

If you are not able to bring all past due amounts current with your last TRA payment, you must contact your Student Loan Collections Advisor 6 weeks before the end of the TRA. You would make a new TRA agreement (not to exceed 6 months) for a new, higher monthly payment which would catch up the past due amounts. If your TRA agreement expires with a past due amount owed, you will be reported to the credit bureau as past due.
Unlike the William D. Ford Federal Direct Loan and the Stafford Loan programs, we do not capitalize any past due interest nor any past due payments. All past due amounts must be caught up.


Credit bureau reporting for a TRA

During the TRA, your account will report to the credit bureau as a "current, special handling" account provided you make every TRA payment on time. If you are late on a TRA payment, your account will report as past due.
If you miss three TRA payments in a row, your account will be removed from the TRA and your loan will be reported to the credit bureau at its true past due status.