Repaying Loans and Financial Education

Who is your Loan Servicer?

The U.S. Department of Education uses several loan servicers to handle the billing and other services on loans for the William D. Ford Federal Direct Loan Program. You may view your loan service provider through the National Student Loan Data System (NSLDS). The NSLDS website provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

Loan Consolidation

Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.

Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist. For additional information on loan consolidation please visit: Federal Student Aid/Loan Consolidation

Making Payments

You need to make payments to your loan servicer. Each servicer has its own payment process, so check with your servicer if you aren’t sure how or when to make a payment. You are responsible for staying in touch with your servicer and making your payments, even if you do not receive a bill. For more information on loan payments please visit: Federal Student Aid/Loan Payments. For additional information about payment plans and Repayment Calculator visit: Federal Student Aid/Repayment Estimator

Deferment and Forbearance

Deferment and forbearance offer a way for you to temporarily postpone or lower your loan payments while you’re back in school, in the military, experiencing financial hardship, or in certain other situations. For additional information about Deferment and Forbearance visit: Federal Student Aid
  • Deferment: is a period during which repayment of the principal and interest of your loan is temporarily delayed.
  • Forbearance: you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your subsidized and unsubsidized loans.

Understanding Default

NEVER ignore delinquency or default notices from your loan servicer.  If you don’t make your monthly loan payments, you will become delinquent on your student loan and risk going into default. Contact your servicer immediately if you are having trouble making payments or won't be able to pay on time. 
Find out what may happen if you default, what steps you can take to keep your loan from going into default, and what your options are for getting out of default. at: Federal Student Aid