When repaying a Direct Consolidation Loan, you may choose from as many as four repayment plans with various term selections. * Standard Repayment Plan: You will pay a fixed amount each month until your loan(s) are paid in full. Your monthly payments will be at least $50 for up to 10 to 30 years, based [...]
Posts under ‘Student Loan Repayment’
Can I change repayment plans?
Most borrowers may change repayment plans at any time. However, borrowers who are required to repay under the ICR plan must make three consecutive monthly payments before changing to another plan. There is no limit to the number of times borrowers may change plans. A borrower may change to the ICR plan at any time. [...]
You can make a payment now by credit or debit card
Student loan borrowers in default now have more options than ever before to repay their student loans. The U.S. Department of Education’s (Department) Default Resolution Group is assisting individuals in default. This site will provide you with information on the following loan programs: Federal Family Education Loans (FFEL), which include Federal Stafford, Federal Consolidation and [...]
Can I consolidate my loans if I am enrolled in school?
Yes and No. Effective for Direct Consolidation Loan applications received on or after July 1, 2006, borrowers who are enrolled in school cannot consolidate loans that are in an in-school status. These are loans that have not yet entered or used up the 6-month grace period entitlement. Borrowers still can consolidate loans that are in [...]
Borrowers Currently Enrolled in school can no longer Consolidate Their Loans
The Higher Education Reconciliation Act of 2005 eliminated the provision that allowed a FFEL or Direct Loan borrower who is enrolled in school on at least a half-time basis to request to enter repayment early on his or her Stafford Loans if the lender approves. Repayment is now defined as not beginning until 6 months [...]
Income Contingent Repayment(ICR) Plan
A repayment plan that bases your monthly payment on your yearly income, family size, and loan amount. As your income rises or falls, so do your payments. After 25 years, any remaining balance on the loan will be forgiven, but you may have to pay taxes on the amount forgiven. Each year your monthly payment [...]
What is Student Loan Repayment Grace Period?
After borrowers graduate, leave school, or drop below half-time enrollment, loans that were made for that period of study have several months before payments are due. This period is called the “grace period.” Grace periods extend from 6 to 12 months after borrowers leave school: Most FFEL and Direct Loans have 6- month grace periods. [...]
Delinquent Student Loans
Delinquency status indicates that borrowers’ accounts have become past due on payment. This occurs when borrowers’ loan payments are not received by the due dates. Accounts remain delinquent until borrowers bring their accounts current with payments, deferments, or forbearances. If borrowers’ accounts have become delinquent and the borrowers are unable to make payments, deferments or [...]
Student Loan Repayment period
Repayment of Consolidation Loans begins within 60 days of the disbursement of the loan. The payback term ranges from 10 to 30 years, depending on the amount of education debt being repaid and the repayment option you select. Education loans not included in the Consolidation Loan are considered in determining the maximum payback period. You [...]
Student Loan Balance Disputes
If you claim to have repaid a portion of the loan which is not reflected in your current balance, or to have repaid the loan in full, you should send copies of the canceled payment instruments (i.e. checks, money orders, etc.) used toward repayment of the loan and any other pertinent information to the agency [...]