A wealth of information about loan repayment, including details about when repayment begins, what happens if a student goes into repayment but then returns to school, what the latest interest rates are, and more, is at StudentAid.gov/repay. Make sure all of your students are aware of that URL so they can take control of their loan repayment. And take a look at the tips and resources we've provided on this page for your use.
Loan Servicers
Repayment Plans
Loan Consolidation
Loan Forgiveness, Cancellation, and Discharge
Options for Borrowers Having Trouble Making Payments
Getting Out of Default
Resolving Disputes
Repayment: What To Expect video(Result Type: General)
Description:
Video explaining what federal student loan borrowers can expect when their federal student loan enters repayment.
Resource Type:
Video
Also
Available in: Spanish-captioned video(Result Type: VIDEO)
Loan Repayment Checklist(Result Type: General)
Description:
Checklist helping borrowers manage and repay their federal student loans.
Resource Type:
Web Resource or Tool
Loan Servicers
If you're working with a student who isn't sure where to send payments for their loan, you should recommend Dashboard at StudentAid.gov/dashboard. Dashboard provides information about which loan servicer is handling a borrower's loan.
Talking point: The borrower should keep in touch with their loan servicer regarding any questions, problems, change of address, return to school, or anything that could affect repayment of the loan.
Repayment Plans
There are several federal student loan repayment plans available to borrowers. We suggest that each borrower review the options and decide which plan is right for them.
Talking points:
- Some repayment plans offer student loan repayment based on income.
- A borrower may change repayment plans at any time.
Loan Simulator(Result Type: General)
Description:
Online tool helping borrowers calculate federal student loan payments and choose a loan repayment option that best meets their needs and goals.
Resource Type:
Web Resource or Tool
Loan Consolidation
Help your students weigh the benefits and drawbacks of getting a Direct Consolidation Loan.
Talking points:
- Loan consolidation can simplify repayment because only one monthly payment must be made; but when you consolidate, you might lose some benefits that were attached to the underlying loans.
- Consolidation is not a type of refinancing to get a lower interest rate. A Direct Consolidation Loan has a fixed interest rate based on the average of the interest rates on the loans being consolidated.
Loan Forgiveness, Cancellation, and Discharge
In some instances, a federal student loan can be forgiven, canceled, or discharged. Examples of these circumstances include the borrower's work in public service or the borrower is totally and permanently disabled. Encourage borrowers to investigate their options carefully and continue to make payments on their loans until the forgiveness, cancellation, or discharge has gone through.
Public Service Loan Forgiveness graphic(Result Type: PDF)
Description:
Graphic that highlights the requirements for the Public Service Loan Forgiveness program. [1.72 MB]
Resource Type:
Infographic
Also
Available in: Text Version(Result Type: General)
Options for Borrowers Having Trouble Making Payments
If a borrower finds their payments too high, they should contact the loan servicer to discuss options, which may include
- changing the payment due date,
- switching repayment plans to get a lower monthly payment,
- getting a deferment or forbearance, or
- consolidating the loans.
Find more tips for avoiding default.
How To Manage Your Student Loans video(Result Type: General)
Description:
Video providing info on how to manage student loans, including changing repayment plans, and options for students who are having trouble making payments.
Resource Type:
Video
Also
Available in: Spanish-captioned video(Result Type: VIDEO)
Getting Out of Default
Unfortunately, too many borrowers wait until they're in default and find that their tax refund has been taken as payment before seeking help. If you're working with someone who's in default, reassure them that there are ways to resolve loan default, including repayment, rehabilitation, or consolidation. The important thing is for them to contact the loan servicer as quickly as possible.
Resolving Disputes
Sometimes a borrower might get discouraged because they don't agree with the amount the loan servicer says is outstanding or feel that a determination of default is wrong. Find out how to resolve disputes about federal student loans, including getting help from the Federal Student Aid Ombudsman Group.