The truth is that the difficult thing is not getting into college, but getting out of it. And for many, the problem only starts after graduation, when they have to pay the FIES debt.

Even if the interest seems like a good deal, you need to be aware of the deadline for repaying the debt, which is usually contacted after completing the course. If you don't get organized to make payments with ease, then you run the risk of going into default.

You can resolve most issues with late payments through prior financial planning on the part of students. The deadline to pay is long and maybe that's why some end up thinking about it at the last minute. And if with all the planning, the risks of going wrong still exist, imagine without preparation?

That's when unexpected expenses, emergencies, unemployment appear, making everything more complicated. But today, we want to show you that nothing is lost and you can reverse the situation. So to get out of default or not to get into it, stay with us and follow the tips!

Going to college is not easy at all, there are a lot of responsibilities with an internship, getting good grades and still delivering the TCC. In addition, those who participate in FIES need to worry about paying for the course.

According to the Ministry of Education (MEC) more than 500,000 Brazilian students who are part of the FIES are in arrears. Refinancing is therefore the way out for many Brazilians and here you will learn how to settle your debt with FIES and get rid of that headache.

The Student Financing Fund (FIES) is a MEC social program. This is therefore the leading student loan program that offers extremely favorable payment options.

With FIES, thousands of higher education vacancies are opened every year throughout Brazil by private institutions. This gives the opportunity for many young people who would not have the opportunity to pay for college to be able to attend a degree.

It's a great opportunity, but there are risks that students and parents need to be aware of.

Over the years, the program underwent some important changes that were very useful in a way. In 2018, FIES now has 3 types of contract, but rest assured that we will explain everything in the best possible way.

FIES 1 is for students with per capita income (per person) of up to 3 minimum wages. In this modality there will be no interest rate, which already makes life much easier for students. The idea is to offer 100,000 vacancies through this model.

FIES 2, on the other hand, is made for students with per capita income of up to five minimum wages and for residents of the North, Northeast and Midwest regions. In this modality, interest rates are charged and are at 3%, while vacancies are offered around 150 thousand.

In the case of FIES 3, it is aimed at students with per capita income of up to 5 minimum wages from all regions of Brazil. It is expected that this modality will serve around 60,000 vacancies and the interest rates have not yet been defined.

FIES is a great opportunity for those who want to take a degree and cannot afford the course fees. Debts start counting from the end of the course, that is, theoretically, you spend the entire period of study without worrying about payment at the end of the month.

And if, if the student does not start the payment at the scheduled time, during the amortization period – which is when the person needs to pay the financed balance – it is recommended that only the minimum payment stipulated in the contract be made.

Here, therefore, you will learn how to negotiate FIES debts without running the risk of not being able to pay off that debt, even with so many payment opportunities.

The payment works like this: the partner banks “lend” the money related to the cost of your course with easy conditions. According to the MEC, student finance payments start to be made after the first month of completion of the course, as the student has income. The maximum term to pay off the financing amount can reach 14 years.

But for those who are not employed, the payment will work from FIES slips with a reduced amount. Therefore, it is very important to respect the minimum payment in accordance with the program regulations.

That way, when there is a fixed source of income, the money will be automatically deducted from your payroll. In this case, you will pay higher installments due to the minimum payment period.

The answer is yes, but don't despair. Even though payment after completing the course is the most important thing, during college there is a fee you will need to pay for the usage phase. The amount consists of up to R$ 150 reais each quarter.

It is therefore worth remembering that you do not receive the financing money in your account, the financial institutions transfer everything directly to your educational institution.

The amendment consists of the half-yearly renewal of the contract. As the courses are divided into semesters every 6 months, this procedure is necessary so that possible changes that may occur in the contract can be included.

There are two categories of addition. Simplified means when there are no changes in financing clauses. And the non-simplified addition that happens when there is a change in the clauses. This process needs to be carried out through SisFIES and for that make a request to the CPSA.

By not being able to pay debts with financing, students with the loss of their diploma or being unable to practice their profession. But rest assured, non-payment of FIES will not prevent you from entering the job market.

First, what the student needs to know is that the FIES debt is not a bank debt like all others, but a debt linked to a federal agency. This means that the consequences are more serious than debts due to default of other natures.

So if you don't pay off your debts, you will possibly have very serious problems. If it's hard enough to get out of the red with common debts, let alone a debt to a federal agency. These are the possible consequences:

Negative name: Non-payment of debt puts your CPF in the register of defaulters of the credit protection agency such as SPC and Serasa, which makes it impossible for you to have access to credit and purchases in installments, for example

Registration in CADIN: with non-payment you become part of the Informative Register of Unpaid Credits of the Federal Public Sector. Which makes it impossible to open accounts, grant loans in the banking network and worse, which can lead to the seizure of assets and the blocking of Income Tax Refunds, only being released after payment of the debt.

This is one of the most recurring doubts. However, like other types of loans, debt with FIES does not expire until it reaches the mark of more than 5 years. What happens is that the credit protection agencies remove the debtor's CPF from the defaulters' register, but this does not prevent them from collecting the debt normally.

In your debt with FIES it is different, after 5 years of outstanding debt the name of the defaulter will remain negative. And he still runs the risk of having his assets seized and blocked to offset his credit with the Federal Government. So we think it's better to think twice or even more before deciding not to pay your debt with FIES.

Just as the FIES debt does not prescribe, it is also not possible for it to be forgiven. We are dealing with a bank loan and we agree that if you owe it, you have to pay it, there is no way out.

Depending on your debt level, it may seem like an impossible task, but with financial planning and control of your finances, things can finally take a positive turn. Making it possible to pay off the debt and get out of default.

The new rules for renegotiating the FIES come into force as of 2019. The renegotiation period opens every year between the months of April and July. So, first, it is necessary to pay attention to the deadline for renegotiation that is published on the MEC website.

Another important piece of information is that the value of the installments for any contract cannot be greater than 10% of the family's monthly income. And these installments are automatically deducted from the salary as it works in a payroll loan.

Payment begins to be made soon after the student earns a formal income, after completing the course.

Previously, the monthly financing fee had a limit of R$ 5 thousand reais, with priority given to medicine, engineering and undergraduate degrees, and now the MEC has not yet defined limits. Currently, the minimum amount to be financed is R$ 50 reais per month.

Another change that also happened was that previously only Caixa Econômica and Banco do Brasil were the only institutions that had the right to carry out the financing. With the new rules, private banks can finance only in modality 3. Modalities 1 and 2 are exclusive to the two banks mentioned above.

To renegotiate your debt, you need to go to the institution where the contract was signed and make a down payment whose value varies between 10% of the overdue debt and R$ 1,000 reais.

The remainder of the balance will be paid in installments, but the installment amount cannot be less than R$ 200 reais. After this renegotiation, you can now rest assured in relation to charges, because with the situation regularized, they will not happen. 

There are two forms of regularization: liquidation or total debt payment in installments. For liquidation, the installment can be paid in a single form with a reduction of 100% in late payment interest. Another way to pay the outstanding balance is to pay the debt in 4 months with interest reduction of 60%.

For those who choose to pay the total amount of the debt in installments, there are 3 forms of discounts. In up to 24 monthly installments, the interest reduction will be 60%. In up to 145 installments the interest reduction will be 40% and finally in 175 installments with interest reduction of 25%. The detailed step by step can be found below:

Anyway, paying the FIES after completing the course is very simple and the conditions are made as easy as possible to fit in your pocket. But, be very careful with debts and never under any circumstances let it accumulate. Did you like today's tips? So follow our other content!