Repayment: What to Expect
Frequently Asked Questions
Go to nsldsfap.ed.gov and log in using your FSA ID. Then choose “Financial Aid Review” to access your loan history.
Federal student loans do not require payments while you are enrolled in school at least half-time (6 credits or more per semester). Once you graduate or go below half-time, you enter a grace period. When the grace period is over, repayment begins.
The following loans have grace periods as follows:
Direct Subsidized/Unsubsidized Loans: 6 months
Perkins Loans: 9 months
PLUS loans: The repayment period for all PLUS loans begins on the date the loan is fully disbursed, and the first payment is due within 60 days of the final disbursement.
However, a graduate student PLUS loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half time, and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower.
Parent PLUS loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower.
The aggregate/lifetime limits for Direct Subsidized/Unsubsidized Loans are as follows:
Pharmacy Students
Total (subsidized and unsubsidized combined): $224,000
Subsidized limit: $65,500
Graduate Students
Total (subsidized and unsubsidized combined): $138,500
Subsidized limit: $65,500
Independent Undergraduate Students
Total (subsidized and unsubsidized combined): $57,500
Subsidized limit: $23,000
Dependent Undergraduate Students
Total (subsidized and unsubsidized combined): $31,000
Subsidized limit: $23,000
They have no limits.
Get an estimate using a repayment calculator.
Visit the Department of Education website for descriptions of available plans and for repayment calculators.
Consider a single borrower earning $30,000 a year with $40,000 in federal education loans. Using the 2009 poverty line of $10,830 for the continental US, the monthly payment cap for each plan would be as follows:
- Standard 10-year repayment will be $460.32
- Income-contingent repayment will be $319.50
- Extended 25-year repayment will be $277.63
- Income-based repayment will be $171.94
Borrowers can change plans once a year.
Contact the servicer of your loans to determine what your monthly payments would be under a particular plan and choose the plan that makes the most sense for you financially.
Borrow conservatively while you are in school and try to pay interest on all unsubsidized loans while you are in school. You can request to receive interest statements from your servicer.
Federal student loans can be consolidated together through Direct Loans/the U.S. Department of Education.
Subsidized/Unsubsidized loans, Perkins Loans, and Grad PLUS loans can be consolidated together. Parent PLUS loans cannot be consolidated with student loans, but the parent may consolidate all previous parent PLUS loans together.
Private student loans cannot be consolidated with federal student loans (Subsidized/Unsubsidized, Perkins, PLUS) but may be able to be consolidated together. Check with the lenders of any private loans you have to see if they offer private loan consolidation and what the terms are.
You will have one monthly payment and one point of contact for your loans that are consolidated together. Your interest rate will be a weighted average of the interest rates on all the loans.
Contact your lender to ask about deferment and forbearance options.