Managing Student Loans
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.
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.
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:
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.
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.
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.
Countdown to Repayment
Month two: chip away at (pay off) interest.
Some examples of the difference it could make are shown here (click below):
Month four: educate yourself on loan forgiveness.
This presentation was created for financial aid administrators; however, it has current information on student loan repayment options and loan forgiveness programs.
Learn more: Student Loan Forgiveness
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 about Automatic Debit.
Defaulted Student Loans
Need to get out of student loan default? Don't stress—you have options! pic.twitter.com/XUp2PXoGBb
— Federal Student Aid (@FAFSA) December 28, 2018
If you’ve defaulted on your federal student loans, you may get a reduced refund after #TaxDay. If this happened to you, a notice of an offset was sent to your last known address. Find out your options to get out of default: https://t.co/MS3TuWTMS1 pic.twitter.com/nG1UIF5cqZ
— Federal Student Aid (@FAFSA) April 15, 2019
A Consolidation Loan allows you to combine multiple federal education loans into one loan with one simple monthly payment. Learn more about pros and cons of consolidation here: https://t.co/FzFFhe9M2U pic.twitter.com/bXNRt96q6F
— Federal Student Aid (@FAFSA) May 29, 2019
Loan Repayment Options
— Federal Student Aid (@FAFSA) March 11, 2019
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
Take a few minutes to review this important information
Wondering about student loan forgiveness options? Get more info here
Public Service Loan Forgiveness (PSLF): https://t.co/t56lgPUTU7
— Federal Student Aid (@FAFSA) February 28, 2019
— Federal Student Aid (@FAFSA) March 22, 2019
— Federal Student Aid (@FAFSA) March 29, 2019
— Federal Student Aid (@FAFSA) December 30, 2018
Articles and Resources on the Web on the Subject of Student Loans
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!
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
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!”
STUDENT LOAN SCAM NOTICE!
Several students have reported receiving robocalls from fake student loan forgiveness companies promising to relieve them of their loans for a small price. Don't believe them and pass this on to your friends & family. https://t.co/VXgi8VR9vB pic.twitter.com/g6ObVTTwNs
— Federal Student Aid (@FAFSA) December 10, 2018