Repayment/Cancellation of Loans
Table of Contents
Repayment of Federal Loans
Federal loans have become a large part of many students' financial aid package. Loans are required to be repaid. Repayment terms and conditions depend upon the type of loan.
- Federal Direct Loans: Repayment begins 6 months after dropping below half time enrollment status or graduating. Repayment on Direct Consolidation loans begins at graduation or as of the date a student drops below half time enrollment.
- Federal Perkins Loans: Repayment begins 9 months after dropping below half time enrollment status or graduating.
Helpful Resources for Repayment
The National Student Loan Data System (NSLDS) provides a history of all Federal Loans you borrowed throughout your college career. Log in using your federal username and password. Each loan will appear showing the details of the loan and the servicer of each loan with the servicer's contact information. You will make payments to the loan servicer for each loan. Note that this site only includes Federal loan information and will not show any private or alternative loans.
The U.S. Department of Education Federal Student Aid website offers information for various stages of the financial aid process – including repayment. Click 'Repay Your Loans' for more information.
The repayment comparison calculator is a tool that can help you calculate your estimated monthly payments under several repayment plans.
Federal Loan Forgiveness, Cancellation, and Discharge
You must repay your loans even if you don't complete your education or can't find a job related to your field of study. In certain situations, however, you may qualify to have your federal student loan forgiven, canceled, or discharged. This means that you are no longer expected to repay your loan if you meet certain qualification requirements determined by the Department of Education.
Here are some examples of forgiveness/discharge reasons:
- Teacher Loan Forgiveness
- Public Service Loan Forgiveness
- Perkins Loan Cancellation and Discharge
- Total and Permanent Disability Discharge
- Death Discharge
The U.S. Department of Education Federal Student Aid website offers links to the various applications and requirements for forgiveness and discharge. Your federal loan servicer can also answer questions regarding your eligibility. If a person qualifies for forgiveness, cancellation, or discharge; the amount discharged may be considered taxable income per IRS regulations.
Private or Alternative Education Loan Repayment
You may have borrowed private or alternative educational loans during your college career. These loans are not associated with the Department of Education. Each lender determines its own repayment terms and conditions. It is important to contact your private loan lender(s) directly to find out your repayment options and payment estimates. Make sure you update your lender with your contact information if it changes throughout repayment as well.