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 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
Loan Servicers
If you're working with borrowers who aren't sure where to send payments for their loans, you should recommend they log in to their StudentAid.gov Dashboard. Their Dashboard provides information about which loan servicer is handling their loans.
Talking point: Borrowers 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 their loans.
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 borrowers 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 if a borrower works in public service or if a 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.
Options for Borrowers Having Trouble Making Payments
If borrowers find their payments too high, they should contact their 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.
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 whose loans are in default, reassure them that there are ways to resolve loan default, including repayment, rehabilitation, or consolidation. It's important for borrowers to contact their loan servicer as quickly as possible.
Featured Social Content for Borrowers in Default
Share our posts about getting out of default on your social media accounts to help the borrowers in your network understand their options.
See our posts for borrowers with defaulted loans on X (formerly Twitter), Facebook, Instagram, and LinkedIn.
Email the Borrowers in Your Network
Use the following email template to inform borrowers about strategies for making on-time student loan payments and getting their loans out of default.
Subject: Successfully Manage Your Federal Student Loans
[Insert Greeting],
The U.S. Department of Education (ED) has asked us to help make sure you have the information you need to successfully manage your federal student loans. Soon, ED's office of Federal Student Aid will email you important information, online tools, and other resources to help you stay on track repaying your student loans. You also may begin seeing useful information from ED on social media.
Collections on defaulted federal student loans will resume May 5. This means that if your student loan is in default, the federal government will begin to offset—or withhold money from your federal or state income tax refunds, Social Security payments, and other federal payments to repay your student loans.
To avoid delinquency (being late on a payment) and default, you should make on-time monthly payments on your federal student loans. There are many consequences of missing monthly payments, including negatively impacting your credit score. Below is a list of actions you can take to stay on track with repaying your student loans.
Successfully manage your student loans by doing the following:
- Consider enrolling in auto pay. This is your best option to never miss a payment and save 0.25% on your interest rate. Contact your loan servicer to enroll.
- Visit StudentAid.gov/loan-simulator to make sure you are on the best repayment plan for your current circumstances, especially if your financial situation has changed. The Loan Simulator tool may recommend an income-driven repayment (IDR) plan, which bases your monthly payment amount on your income and family size. If you're already on an IDR plan and your income has gone down or your family size has increased, you can ask your loan servicer to recalculate your IDR plan payment.
- Consider loan rehabilitation if you have loans in default. When your loan is rehabilitated, the default status will be removed from your loan, and collection of payments through wage garnishment or Treasury offset will stop. Visit StudentAid.gov/end-default to learn more.
Remember: Federal loan servicers will help you for free. You never have to pay for assistance with your federal student loans. Visit StudentAid.gov/repay101 for the most up-to-date information about student loan repayment.
[Insert your organization's name] is pleased to join ED in giving you the information, resources, and online tools you need to successfully stay on track with your student loans.
Sincerely,
[Organization Name]