Repayment & Cancellation of 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 U.S. Department of Education Federal Student Aid website provides a history of all Federal Loans you borrowed throughout your college career, as well as access to a number of helpful tools and resources. Log in using your FSA ID (the username and password you use to complete the FAFSA). You will be taken to your Dashboard which provides a quick overview of your loan information and grant usage, if applicable. You’ll also see a number of tools and resources to assist you with many different questions you may have regarding your loans. You can access your loan information by clicking on “View Details” on your Dashboard. You can review your loan servicer(s) by clicking on “View Loan Servicer Details.”
The U.S. Department of Education Federal Student Aid website offers information for various stages of the financial aid process, including repayment. There are also a number of tools you can use, one of which being the Loan Simulator, which helps you calculate your estimated monthly payments under several repayment plans. It can also assist you in deciding whether to consolidate. Go to Manage Loans for more information.
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.