Repaying Your Loans

Planning for the repayment of your student loans takes some thought and an evaluation of your situation and options. Understanding your options, the hazards of default, and how to resolve federal student loan disputes are critical to your future financial health.

Loans begin to go into repayment when a borrower:

• Graduates from school
• Takes a Leave of Absence
• Withdraws from school
• Transfers to another school
• Drops below half-time enrollment 

 

 

NEWS AND UPDATES:

 

The Obama administration announced important updates to the Income Based Repayment Plan (IBR) and a Special Direct Loan Consolidation process to make it easier for borrowers to manage their student loan debt. 

Under the new IBR plan, beginning in January 2012, current students can cap their loan payment at 10 percent of their incomes with forgiveness after 20 years rather than 25 years of responsible payments.   

The U.S. Department of Education will offer Special Direct Consolidation Loans to eligible borrowers, beginning in January 2012. This is a short-term consolidation opportunity, ending June 30, 2012, for borrowers with 

• at least one student loan held by the Department of Education 
• at least one commercially-held FFEL loan

 

For more information and to read view the Administration's fact sheet about this initiative, please click here.

 

Please review the links to the left for more information regarding payment plans.