Answers to Loan Repayment Questions

Federal Stafford Loans​

Repayment on the Subsidized and Unsubsidized Stafford loans begins six months after the student graduates or is no longer attending school at least half time.

Federal PLUS Loans

Repayment on the Parent PLUS loans begins 60 days after the last disbursement for the academic year.  The parent is given the option on the loan application to defer payments until either their student is no longer in school or until they are out of school for six months, if either of these options are chosen please note that interest is still accruing on the loan during this time.

Repayment on the Graduate PLUS loans begin six months after the student graduates or is no longer attending school at least half time.

Perkins Loans

Repayment on the Perkins loans begins nine months after the student graduates or is no longer attending school at least half time.

Please see the following link that will go over the current repayment plans offered by the Department of Education for federal loans.  If you are not in contact with your loan servicer prior to repayment they will automatically assign you the most common standard repayment option. If you would like to change your repayment plan you will need to contact your loan servicer, some changes can be done on their website or over the phone, some will require additional paperwork and/or documentation to be put into effect:
https://studentaid.gov/manage-loans/repayment
You can estimate your federal student loan payment by selecting the following link:

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
No, there is no prepayment penalty.  If you are able to pay more than your minimum monthly payment or before your loan enters repayment the less you will pay on the loan in total over the life of the loan.
For your federal student loans there are many reasons to be eligible for one of the above options, please see the following link for more information and if one is applicable to you please be in contact with your loan servicer:

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation

If you are unable to pay your student loans on time there are some options you should be aware that you have:

 1. Contact your loan servicer to discuss a different repayment option with a lower monthly payment.
 2. Contact your loan servicer to see if you qualify for a deferment on your loans.  This is a period of time where your loan payments are on hold with no interest accruing on the Subsidized portions of your loans.  Typical reasons to qualify are being unemployed, going through an economic hardship or being back in school at least half time.
 3. Contact your loan servicer to see if you qualify for a forbearance on your loans.  This is a period of time where your loan payments are on hold with interest accruing on all of your loans. 

If you are even one day late making your loan payment your loan is considered delinquent.  If your loan is delinquent for more than 90 consecutive days, your loan servicer will report you to the three major credit bureaus.

If you become 270 consecutive days or more past due on your loans your loan will be in default, at this point your lender can take some drastic action against you including but not limited to:
  • losing eligibility to borrow additional federal financial aid until the default is resolved
  • your loan being sent to collections
  • your federal and state tax refund can be taken by the IRS and applied to your outstanding loan debt
  • your wages may be garnished by your employer
  • legal action can be taken against you by your loan servicer

Helpful Websites:

  • Student Loans: Information about managing repayment and repayment options or if you have questions about student loans including loan consolidation. Students cannot apply for a consolidation loan while attending school.
  • Federal Student Aid: Overview of federal financial aid information pertinent to students before, during and after attending school.
  • National Student Loan Data System: (NSLDS) provides information on all of your loans including how much you owe and who is the servicer of your loan.
  • Student Loan Refinance: Gives students loan refinance options.