Federal student loans
When you graduate (or drop below half-time enrollment), you enter a grace period on your federal student loans. This is a short time—six months for Stafford Loans and nine months for Perkins Loans—before payments become due.
Federal PLUS Loans do not have a grace period; repayment generally begins within 60 days after the loan is disbursed.
During your grace period (or before you leave school), you should receive an exact repayment schedule from your lender. The repayment schedule will describe different options you have for repaying your loans.
Repayment plans
Stafford and PLUS Loan borrowers can choose from four repayment plan options, including:
- Standard repayment: Pay a fixed monthly amount (a minimum of $50) for up to 10 years. The actual length of repayment depends on the total amount borrowed.
- Extended repayment: New borrowers with federal student loans totaling $30,000 or more disbursed after October 7, 1998 can make fixed or graduated monthly payments for up to 25 years.
- Graduated repayment: Begin with lower monthly payments and then gradually increase your payment amount over the 10-year repayment term. Payments must at least equal the interest accrued on the loan.
- Income-sensitive repayment: Payments are based on a percentage of your gross monthly income. Payments must at least equal the interest accrued on the loan; and you must submit income verification to your lender to qualify. You must reapply each year.
If you don't select a repayment plan, you will automatically be enrolled in a standard repayment plan. You can change repayment plans annually and prepay your student loans without penalty. To estimate your payments under the different repayment options, use Nellie Mae's calculators.
Postponing repayment
If your grace period is ending and you meet certain conditions, you may be eligible to postpone repayment under deferment. Deferment conditions include:
- Returning to school at least half time;
- Participating in an approved graduate fellowship or rehabilitation training for the disabled;
- Seeking but unable to find full-time employment (maximum three years);
- Serving on active duty in the military or National Guard (maximum three years); or
- Experiencing other types of economic hardship (maximum the years).
In other cases, if you don't meet deferment conditions but you're still having difficulty repaying your loan(s), you may request forbearance from your lender. Forbearance is generally granted in one- to 12-month increments. It allows you to reduce your monthly payment amount or postpone payments altogether.
You must request deferment or forbearance from your lender. You should continue making payments until you receive notice that your request has been approved.
During deferment, interest does not accrue on subsidized Stafford Loans or Perkins Loans; however, interest does accrue on all loans during forbearance.
Online loan servicing
If you have loans from Nellie Mae or Sallie Mae, you can make several loan-related transactions conveniently online, including reviewing your account; making a payment; changing your address; and postponing a payment. Online servicing saves time and postage and gives you the flexibility to make repayment transactions at your convenience. Sign up for these services at Manage Your Loans.
Student loan cancellation/forgiveness
All or a portion of your federal student loan may be canceled (discharged) under certain circumstances.
Handling repayment problems
If you have problems or disputes related to repaying your federal student loans, you can contact the Federal Student Aid Ombudsman online or by phone: (877) 557-2575.
