Loan Repayments

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

Where do I send my payment?
Please make your check out to the Santa Barbara Foundation, and send it to: P.O. Box 3620, Santa Barbara CA 93130-3620.
When do I need to start 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 us of any address change by emailing [email protected].
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. We do 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 dealing with an unusual economic hardship. (Please note: In this case, deferral is granted once only, and only for a time period of three months.)
  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 funding from the Foundation?

Recipients are eligible for up to four years of undergraduate scholarship, and up to four years of additional funding through our medical/graduate scholarship program.  If you will be enrolled full-time in a Title IV-approved school and have not received four years of scholarship funding from us, please click on the Apply for a Scholarship 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?

We are 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 each month. Request that your bank includes your loan number on all correspondence, and make sure it is payable to the Santa Barbara Foundation.

How do I find out the current balance on my student loan account?
How will I know when my student loan is paid in full?
We 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?