The Repayment Process
Repaying your student loan is an important responsibility. To help you manage repayment, we offer numerous resources and helpful information about your responsibilities as a borrower and the repayment options that are available to you.
- Stay organized and keep copies of your loan documentation and forms.
- Communicate regularly with your loan servicer and update them when important changes happen. Also, contact them if you have trouble making payments.
- Keep a phone log and take notes, including who you talked to, the time of the call and what decisions were made, when speaking to someone about your loan.
- Research options to reduce the total amount of interest repaid.
- Consider your repayment options or consolidation to determine what's best for your situation.
- Know how much you owe by looking up your student loans on StudentAid.gov.
- Ask questions about your loans when you speak with your servicer.
- Set up automatic payments.
- Pay more than the minimum.
- Look into discharge and forgiveness.
- Make student loan payments a part of your personal budget.
- Deferment allows you to temporarily postpone or reduce your student loan payments for a specific period if you meet certain criteria. Eligibility for deferment is typically tied to specific circumstances, like being enrolled in school at least half-time, experiencing economic hardship, or serving in the military. You generally need to apply for deferment with your loan servicer and provide documentation to prove your eligibility.
- Forbearance is a temporary relief option that allows borrowers to either pause their monthly payments or make smaller payments for a specified period of time. It's usually requested when a borrower is facing financial difficulties due to situations like job loss, medical expenses, or changes in income.
Repayment Options
In most cases, students with federal student loan begin repaying them six months after they graduate, leave school., or drop below half-time enrollment. This initial period is referred to as a ‘grace period.’ A grace period gives you time to get financially settled and to select your repayment plan. During this time, payments are not required, but interest may continue to accrue on certain types of loans, such as Direct Unsubsidized Loans. PLUS loans, for example, typically go into repayment as soon as the funds are disbursed.
Paying off student loans is a significant financial obligation, and selecting the right repayment plan is crucial for managing this debt effectively. Your chosen repayment plan significantly affects your monthly payment amount, the total interest paid over the life of the loan, and how quickly you can become debt-free. Visit StudentAid.gov to find a repayment option that works best for you.
What if I can't make my payments?
If you’re struggling to make part or all of your student loan payment, contact your loan servicer as soon as possible to discuss your options.
You may want to consider a different repayment option that would allow you to make smaller payments when you start repaying your loan, and gradually increases the amount of your payment over time. If you can’t make a payment at all, you may want to consider deferment or forbearance.
The primary distinction of forbearance compared to deferment, is that interest continues to accrue on all types of loans during forbearance. If this accrued interest isn't paid during the forbearance period, it may be added to the principal balance, increasing the total amount owed.
Speak with your loan servicer about your options.
