Managing Student Loans

After you graduate, leave school, or drop below half-time enrollment, you have a six month period of time before you have to begin repayment. This six month period of time is called the “grace period”. Your federal loan servicer will provide information about repayment and will notify you of the date your loan repayment begins.

You will be able to choose a repayment plan that meets your needs. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. Generally, you’ll have from ten to twenty-five years to repay your loans. Our office recommends that you explore the Direct Loan Repayment Plans and Calculators 🔗 for more information about the repayment plans and to calculate your estimated repayment amount under each of the different plans.


Guide 🔗 to repaying your federal student loans.

Guide to Repaying Your Loans (PDF)

Federal Student Loans: Repaying Your Loans (PDF)
Préstamos federales para estudiantes: Pago de sus préstamos (PDF)

Loan Servicers

All Federal Direct/Stafford, PLUS, and Graduate PLUS loans are now being serviced by one of the agencies listed on StudentAid.gov.  For specific questions about loan repayment or deferment, you can contact your federal loan servicing center directly. If you are not sure who your federal loan servicer is, you can look it up by logging into studentaid.ed.gov (preferred) or nslds.ed.gov (archaic).

For more information on loan servicers, please go to StudentAid.gov.


Student loan debt relief companies say they’ll help you get loan forgiveness—if you pay them. SCAM ALERT! Details: bit.ly/2RnhIvT 🔗
Posted Date: August 22, 2019

Author: Federal Student Aid

Subject: Deferment for Cancer Treatment for Direct Loan, FFEL, and Perkins Loan Program Borrowers

The Department of Education Appropriations Act, 2019, Title III of Pub.L. 115-245 created a new Cancer Treatment Deferment for borrowers in the William D. Ford Federal Direct Loan (Direct Loan), the Federal Family Education Loan (FFEL), and the Federal Perkins Loan (Perkins Loan) programs.

Statutory Requirements for the New Deferment

Qualified borrowers may receive a deferment on their qualifying loans while they are receiving cancer treatment, and for the six months following the conclusion of their treatment. The deferment has no fixed time limit.

A borrower may qualify for the deferment of their Direct Loans made on or after the date of enactment of Pub. L. 115-245 (September 28, 2018) or of their Direct Loan, FFEL or Perkins Loan Program loans which entered repayment on or before September 28, 2018. Loans which were made before September 28, 2018, but which were not in repayment on that date because the borrower was in an in-grace or in-school status are not eligible for the deferment and will not become eligible when they do enter repayment. In addition, a deferment cannot be granted for a period of treatment before September 28, 2018.

Like all other deferments, Perkins Loan borrowers receive a six-month post-deferment grace period before payments resume. This grace period is in addition to the six-month period of deferment that the borrower will receive after cancer treatment ceases.

Under the law, the following loan types will receive an interest subsidy during the deferment:

  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans made to students
  • Direct PLUS Loans made to parents
  • Direct Subsidized Consolidation Loans
  • Direct Unsubsidized Consolidation Loans
  • Direct PLUS Consolidation Loans
  • Federal Perkins Loans
  • Federal Subsidized Stafford Loans
  • Federal UnSubsidized Stafford Loans
  • Federal Subsidized Consolidation Loans

Note: While Federal Unsubsidized Stafford Loans receive an interest subsidy, the law does not permit the Department to reimburse FFEL Program lenders for the interest subsidy.

Under the law, the following loan types will not receive an interest subsidy during the deferment:

  • Federal PLUS Loans made to students
  • Federal PLUS Loans made to parents
  • Federal Unsubsidized Consolidation Loans
  • Supplemental Loans for Students (SLS)
  • Deferment Request Form

    The Department has received approval from the Office of Management and Budget for a new Cancer Treatment Deferment Request Form under OMB Control Number 1845-0154. The expiration date for the form is 7/31/2022. Borrowers, lenders, and their authorized servicers may begin using the attached OMB-approved form immediately.

    As reflected on the request form, for the borrower to receive a deferment, a Doctor of Medicine or Osteopathy who is legally authorized to practice medicine must certify that the borrower is or was receiving cancer treatment in the physician’s care, and the dates of that treatment.

    Lenders or their authorized servicers may only approve a deferment for up to one year of treatment (followed by a six-month post-treatment deferment period) based on the physician’s initial certification. If a borrower’s treatment period lasts longer than 12 months, the physician may re-certify that the borrower is continuing to receive cancer treatment at the conclusion of the one-year period by completing a new Cancer Treatment Deferment request form. The Department will send reminders to borrowers in its loan portfolio that they may request to have their deferment extended if they are still receiving cancer treatment after 12 months of deferment have elapsed. If the borrower does not submit a new request and physician certification the borrower will still receive the extra 6-month post-treatment deferment period at the end of the 12 months of treatment.

    The Department recognizes that borrowers undergoing cancer treatment may have a mix of loans that qualify for the deferment and those that don’t. Consequently, the deferment form is not only a request for deferment, but also allows the borrower to request a forbearance on any loans that do not qualify for the deferment. The Department will automatically provide an administrative forbearance to borrowers who have a mix of qualifying and non-qualifying loans. For borrowers with loans held by the Department who request a cancer treatment deferment and who only have non-qualifying loans, the Department will grant the borrower a discretionary forbearance. We encourage FFEL Program and Perkins Loan Program participants to grant a discretionary forbearance to borrowers who have some or only have non-qualifying loans.

    Printing Instructions

    The form is provided only in PDF format. Program participants are responsible for ensuring that the form they use is the form approved by OMB. No changes may be made to the form except as expressly provided below.

    The form must be printed with black ink on white paper. The typeface, point size, and general presentation of the form may not be changed from the version approved by OMB. Any blank spaces at the top, bottom, or sides of the form may be used for bar coding or other information. In addition, contact and submission information can be pre-populated in the section of the form designed for that purpose.

    Reminder

    As a reminder, any form which has an expiration date in the past (meaning the form is expired) remains valid for use until the Department publishes a new version of the form with an updated expiration date.

    Attachments/Enclosures:

    Cancer Treatment Deferment Request Form in PDF Format, 953KB, 3 Pages

    Login to FSA

    Countdown to Repayment

    Are you a recent graduate? Prepare yourself for the end of your grace period by following the steps written in this Web article by Great Lakes, a federal loan servicer:

    In summary:
    Month one: Find out what you owe and when.

    Login to FSA

    Month two: chip away at (pay off) interest.

    Some examples of the difference it could make are shown here (click below):

    If you pay the interest as it is charged…
    If you do not pay the interest and it is capitalized…

    Loan Amount
    $19,000 subsidized and 8,000 unsubsidized
    $19,000 subsidized and 8,000 unsubsidized

    5% Interest on unsubsidized loans as disbursed over four, trimester years and after six month grace period
    $1,000 (paid as accrued)
    $1,000 (unpaid and capitalized)

    Principal to be Repaid
    $27,000
    $28,000

    Monthly Payment
    $286
    $297

    Number of Payments
    120
    120

    Total Repaid
    $34,365 + $1,000 upfront
    $35,637

    Difference
    $272

    If you pay the interest as it is charged…
    If you do not pay the interest and it is capitalized…

    Loan Amount
    $27,000 unsubsidized
    $27,000 unsubsidized

    5% Interest on unsubsidized loans as disbursed over four, trimester years and after six month grace period
    $3,200 (paid as accrued)
    $3,200 (unpaid and capitalized)

    Principal to be Repaid
    $27,000
    $30,200

    Monthly Payment
    $286
    $320

    Number of Payments
    120
    120

    Total Repaid
    $34,365 + $3,200 upfront
    $38,438

    Difference
    $873

    Month three: evaluate payment plans.

    Looking to lower your monthly payments and/or your overall payment amount? Use FSA’s Repayment Calculator to find your savings under each repayment plan.


    Follow thisTwitter_Logo_Bluethread to learn how switching plans helped these three borrowers.
    Month four: educate yourself on loan forgiveness.
    Page One from USEDLoanrepayment
    This presentation was created for financial aid administrators; however, it has current information on student loan repayment options and loan forgiveness programs.


    Twitter_Social_Icon_Square_Color FFEL/Perkins Loan Borrowers, click here.
    If you’re considering Public Service Loan Forgiveness, make sure your payments count!

    Here are 5 ways you may be able to get your student loans forgiven.

    Learn more: bit.ly/2HFt37U
    Month five: connect with your servicer.

    Month six: save and get ready with auto-pay.

    Have a Federal Direct Loan? Never miss a payment AND get an interest rate deduction by signing up for automatic debit. Learn more at bit.ly/2UAVi0U.
    Twitter_Social_Icon_Square_Color The Power of Additional Payments on a Typical Loan

    What kind of impact would making additional payments on your student loans have? 🤔 Glad you asked.

    Defaulted Student Loans

    Consequences of Default

    Loan Repayment Options

    There are multiple Federal Loan Repayment Options.


    The following companies are an alphabetized selection of banks curated by Student Loan Hero that will assist you in refinancing your student loans, should you wish to do so. These links take you to external sites not operated or owned by EOU. EOU does not endorse or recommend any bank and takes no responsibility for any consequences resulting from your actions with said bank. These banks listed are not your only options. Please consider carefully before making a choice. Most of the time, you should only consider refinancing your private or alternative student loans and not your federal loans. Refinance? (Infographic) Your federal loans can be consolidated at studentloans.gov, if necessary. Please make sure to review your federal loan benefits in detail before deciding to refinance or consolidate your federal loans.

    US Department of Education Loan Repayment & Forgiveness Presentation

    This presentation was created for financial aid administrators; however, it has current information on student loan repayment options and loan forgiveness programs.

    Take a few minutes to review this important information

  • US Department of Education Loan Repayment & Forgiveness Presentation
  • ED Homeroom
    🔗 Student Loan Forgiveness (and Other Ways the Government Can Help You Repay Your Loans)

    Articles and Resources on the Web on the Subject of Student Loans


    Top Six Ways to Reduce What You Owe by Great Lakes Educational Loan Services 🔗

    There’s a lot of information to take in when it comes to your student loans. Follow the Wizard 🔗 to Find Ways to Reduce Your Debt!

    GreatLakesWizard

    A Montag. (2018, Sep 19). Kevin O’Leary shares his No. 1 piece of advice for paying off student loans. CNBC Make It. Retrieved from https://www.cnbc.com/2018/09/19/kevin-olearys-top-advice-for-paying-off-student-loans.html


    Beware: You never have to pay for help with your student loans.
    Make sure you understand which companies and claims are legitimate. 🔗

    Borrowers have reported receiving phone calls, emails, letters, and/or texts offering them relief from their federal student loans or warning them that student loan forgiveness programs would end soon. Usually, the so-called student loan debt relief companies offering these types of services don’t offer any relief at all. Often they’re just fraudsters who are after your money.

    Here are some examples of the false claims made in these communications:

    • “Act immediately to qualify for student loan forgiveness before the program is discontinued.”
    • “You are now eligible to receive benefits from a recent law that has passed regarding federal student loans, including total forgiveness in some circumstances. Federal student loan programs may change. Please call within 30 days of receiving this notice.”
    • “Your student loans may qualify for complete discharge. Enrollments are first come, first served.”
    • “Student alerts: Your student loan is flagged for forgiveness pending verification. Call now!”


    Link to Homeroom, The Offical Blog of the U.S. Department of Education. 8 Common Student Loan Mistakes
    GRADUATES 🎓! Here are 8 common student loan mistakes (and how to avoid them): bit.ly/2WITyPX
    ED Homeroom