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.

fastweb-logo Quick Reference Guide on Choosing a Student or Parent Loan
The Rise of College Student Borrowing

Alert! The Department of Education Appropriations Act, 2019 includes a provision that allows individuals diagnosed with cancer to have their federal student loans placed in a deferment status while they undergo cancer treatment. The U.S. Department of Education is assessing the newly enacted law and will explain the new deferment conditions to customers on this page 🔗 as soon as more details are available. We encourage you to check back periodically. If you need assistance in the meantime, contact your federal loan servicer.

Your Federal Student Loan History

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Loan Servicers

All federal 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 or the National Student Loan Database System.

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

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;
  • Month two: chip away at (pay off) interest; [Some examples of the difference it could make are shown here:]
  • 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;
  • Month four: educate yourself on loan forgiveness;
  • Month five: connect with your servicer;
  • Month six: save and get ready with auto-pay.

  • Defaulted Student 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!”


    GRADUATES 🎓! Here are 8 common student loan mistakes (and how to avoid them): bit.ly/2WITyPX
    ED Homeroom