How to Manage Repayment of your Federal
Understanding the repayment process for your
federal student loans can go a long way toward building a solid
student loans are real loans, just like car loans or mortgages. You
must repay a student loan even if your financial circumstances
become difficult. Your student loans cannot be canceled because you
didn’t get the education or job you expected, or because you didn’t
complete your education (unless you couldn’t complete your education
because your school closed).
You need to make payments to your
loan servicer. Each servicer has its own payment
process, so check with your servicer if you aren’t sure how or when
to make a payment. You are responsible for staying in touch with
your servicer and making your payments, even if you do not receive a
more about repayment of your federal student loans.
The U.S. Department of Education
(ED) uses several loan servicers to handle the billing and other
services on loans for the William D. Ford Federal Direct Loan
(Direct Loan) Program and for loans originally made under the
Federal Family Education Loan (FFEL) Program but now owned by
Learn about loan servicers and how to determine who your loan
You have a choice of several
repayment plans that are designed to meet your needs. The amount you
pay and the length of time to repay your loans will vary depending
on the repayment plan you choose.
Get details about repayment plans
and calculate your estimated repayment amount under each of the
Learn what it means to
consolidate your loans,
how to apply for loan consolidation, things to consider before
consolidating your loans, the types of loans that qualify for
consolidation, and what happens after you consolidate your loans.
Deferment and Forbearance
Deferment and forbearance offer a
way for you to temporarily postpone or lower your loan payments
while you’re back in school, in the military, experiencing financial
hardship, or in certain other situations.
Find out more about deferment and
Cancellation, and Discharge
In circumstances such as certain
kinds of teaching service, total and permanent disability, or the
closure of the school where you were studying, your obligation to
repay your federal student loan may be removed.
Learn about forgiveness,
cancellation, or discharge
of federal student loans due to these and other situations.
NEVER ignore delinquency or
default notices from your loan servicer. If you don’t make
your monthly loan payments, you will become delinquent
on your student loan and risk going into default. Contact your
servicer immediately if you are having trouble making payments or
won't be able to pay on time.
Learn about federal student loan
default: Find out what
may happen if you default, what steps you can take to keep your loan
from going into default, and what your options are for getting out
If you have a
dispute about your loan,
you may be able to resolve it by simply contacting your loan
servicer and discussing the issue. If you need additional help, find
out what you can do to be better prepared before you seek help to
resolve a dispute.