Student Loans

Student Loans

When it comes to your student loans, keep in mind that you might not need to borrow the entire amount of loans that are offered to you. Borrow only what you absolutely need and give the rest back. Whether borrowing federal or private student loans, students should be aware of the details of their loans.

Before you borrow student loans, ask yourself:

  • Is it necessary to accept the full amount that is offered?
  • When does the repayment period begin?
  • Can I come up with some of the money another way?
  • What is my interest rate going to be? What is a good interest rate for this loan?
  • How long will it take to repay this loan?

Student Loan Repayment Course

You borrowed money to pay for school through student loans, and now you are in debt. Don’t worry—there are plenty of ways to face it head-on. Debt can seem overwhelming, but it doesn’t have to be. This lesson will help you fully understand your repayment options, so student loan repayment will feel more manageable.

In this lesson, you will learn about:

  • Your rights and responsibilities as a borrower.
  • Your repayment plan options.
  • How your payments relate to your spending plan.
  • Solutions to repayment challenges.
  • How to develop successful repayment habits.

Student Loan Repayment Course

Loan Repayment Resources

Deferment and Forbearance

Student Loan Repayment Estimator

Federal Student Loan Repayment Overview

View Your Federal Student Loan Borrowing History

To view your total loan borrowing and learn who your federal student loan servicer is, visit studentaid.ed.gov and log in with your FSA ID.

Next to “Loan Type” you will see a column named “Make a Payment”. Your federal student loan servicer will be listed, and if you click the link, you will be directed to their website.

Your federal student loan servicer is the organization that will collect your payments. In the meantime, visit their website to create an online account and update your contact information with them. It would be beneficial to call and speak to one of their loan representatives to learn about what repayment plans you may qualify for and also how repayment will work.

Repayment Plans

Repayment Plans

Standard Repayment

10 years

  • Quickest payoff.
  • Fixed monthly payments.

Pay As You Earn (PAYE)

20 years

Revised Pay As You Earn (REPAYE)

20 years

  • Monthly payments as low as $0 per month.
  • Payment amounts based on your household income (with spouse, if applicable) and family size. Reduced monthly payments are calculated using 10% of your discretionary income.
  • Extended repayment period.
  • Offers loan forgiveness after 20 years of qualifying payments (25 years for borrowers with Direct Loans obtained for graduate and professional study).
  • Must re-certify income annually.

Income-Based Repayment (IBR)

20-25 years

  • Monthly payments as low as $0 per month.
  • Payment amounts based on your household income (with spouse, if applicable) and family size. Reduced monthly payments are calculated using 15% of your discretionary income (10% for new borrowers).
  • Extended repayment period.
  • Offers loan forgiveness after 25 years of qualifying payments (20 years for new borrowers).

Income-Contingent Repayment (ICR)

20-25 years

  • Monthly payments as low as $0 per month.
  • Payment amounts based on your income, family size, and loan debt. Reduced monthly payments are calculated using 20% of your discretionary income or the amount you would pay under a fixed repayment plan over 12 years.
  • Offers loan forgiveness after 25 years of qualifying payments.

Public Service Loan Forgiveness (PSLF)

PSLF is a federally funded program that encourages people to work full-time in public service jobs. About 25% of Americans do! Your remaining balance of your Direct Loans will be forgiven after you have made 120 qualifying monthly payments while working full time for a qualifying employer.

  • Public service job
  • Full-time employment
  • Qualifying loans (Direct Loans only)
  • Qualifying loan repayment plan
  • On-time monthly payments made after 10/1/07

*The amount forgiven is tax exempt! Find out more at myfedloan.org/PSLF