Help Center
June 14, 2024 2025-08-27 9:11Help Center
Frequently Asked Questions
Whether you’re getting ready to graduate from college or have student loans that have been in repayment for a while, use this help center to find articles and answers to assist you in managing your student loan debt.
Common Questions
Where can I find forms?
You can view available forms at edrepay.com/repayment-forms.
Can I pay more than my monthly payment amount?
You can always pay more than your Monthly Payment Amount.
By paying more now, you could pay less over the life of the loan.
How do I apply for a lower payment
Federal loans have a variety of repayment options that can lower your monthly payment amounts and give you more time to pay back your loans.
With Income-Driven Repayment (IDR) plans, certain eligibility conditions apply and an annual renewal is required – so be sure to find out how these plans work.
How do I find out who all of my student loan servicers are?
You may access StudentAid.gov using your social security number, first two letters of your last name, date of birth and FSA ID. This website will list all of your student loans along with servicer names and contact information. You can use the web site to make inquiries about your Title IV loans and/or grants. The site displays information on loan and/or grant amounts, outstanding balances, loan statuses, and disbursements.
In order to find any alternative or private loans you have taken out for education, please pull your credit report for free at annualcreditreport.com.
How do I contact my servicer(s)?
View this list of servicers to find contact information for your servicer(s).
How does a grace period work?
A grace period is defined as an allotted amount of time during which you are not expected to make payments on your student loans after initially leaving school or dropping below half-time status.
Repayment for a FFELP Stafford and Direct Subsidized or Unsubsidized student loan begins six months after you graduate, drop below half-time enrollment, or withdraw from school. If you allow your six-month grace period to elapse after leaving school, your loan will not be eligible to receive a new grace period in the future. However, if you interrupt your initial grace period by going back to school, enroll in enough units to maintain at least half-time status in a qualifying course of study and file the appropriate student deferment form, you will be allotted another six-month grace period.
What are the repayment plans available for FFELP Stafford and Direct Subsidized or Unsubsidized Loans?
View this list of repayment plans for federal student loans.
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Friday: 8am – 6pm
General Information
What is the difference between federal student loans and private student loans?
Federal student loans are guaranteed by the federal government through the Direct Loan, FFELP, or Perkins Loan program. Federal loans include Subsidized and Unsubsidized, Parent PLUS, Grad PLUS, and Consolidation loans which come with flexible repayment terms to help students of various economic backgrounds gain access to higher education.
Private loans are not guaranteed by the federal government. They are similar to bank loans and their interest rates may be based on a variable index, such as Prime or LIBOR. The interest rate for private loans will depend on the borrower’s, and sometimes the co-borrower’s, credit history. Private loans are intended to close the gap between the amount students can borrow under the federal student loan programs and the cost of higher education.
I’ve heard of companies that might help me lower my monthly payment or reduce or forgive my student loan debt. Is this a good idea?
You must research the company carefully to ensure the offer is legitimate. Please keep in mind that you can always call your student loan servicer to inquire about available repayment options including the ones that may reduce your monthly payments considerably based on your income. You don’t have to pay someone for this assistance.
Can I qualify for a PLUS loan?
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child’s education expenses as long as certain eligibility requirements are met. Graduate and professional students may apply for PLUS Loans for their own expenses.
To be eligible for a Direct PLUS Loan for Parents:
- The parent borrower must be the student’s biological or adoptive parent. In some cases, the student’s stepparent may be eligible.
- The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court.
- The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.
- The student and parent must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the federal student aid programs.
How can I file a complaint against a company that misled me?
If you feel you were misled by a third-party debt relief company, these resources may be helpful to you to file a complaint against that company:
Payments, Interest, and Fees
How is student loan interest calculated?
Most student loans (including all federally guaranteed loans) use a method of interest accrual known as “simple interest.” The interest on your student loan(s) is calculated using the simple daily interest method and is based on the outstanding principal balance. Interest accrues daily on your loan(s) and the interest accrues separately from your principal balance. When a payment is received, it is applied to accrued interest first, and the remainder of the payment is applied to the principal balance. The amount of interest assessed on each payment may vary depending on variables such as the number of days between payments and whether all outstanding interest was fully satisfied by the last payment received.
To calculate your interest accrual, use the following formula:
- (Current Principal Balance x Interest Rate) ÷ 365.25 = Daily Interest Accrual Daily
- Interest x Number of Days since Last Payment = Total Outstanding Accrued Interest*
*Assuming your last payment satisfied all the outstanding interest on your account
Example
Mr. Smith has a $15,000.00 loan with a 6.8% interest rate. He made a payment 15 days ago which satisfied all outstanding interest on his loan. If he were to make a $150.00 payment today, how would his payment be applied?
Calculate his Daily Interest Accrual to determine how much interest is due on his loan today:
- 6.8% (0.068) x $15,000 ÷ 365.25 = $2.7926
- $2.7926 x 15 = $41.889 (rounded to $41.89)
Mr. Smith’s $150.00 payment would first satisfy the outstanding interest balance of $41.89. The remaining $108.11 would be applied to his principal balance of $15,000.00.
This formula says to multiply your current principal balance by the interest rate and then divide the result by 365.25. The result is your daily interest accrual, or how much interest you would pay for one day. You can multiply this number by a specific number of days to calculate your interest accrual over a certain amount of time.
Example
- Current principal balance: $20,000.00
- Interest rate: 4.50%
- Days of interest needed: 30
Just plug in the numbers to calculate the approximate 30-day interest accrual: [(20,000 x .045) ÷ 365.25] x 30 = $73.92.
For more information detailing how different monthly payment amounts affect the amount of interest you pay over the life of your loan(s) visit the StudentAid.gov Loan Repayment Calculator.
How will my payments be applied?
All payments are applied first to outstanding interest, unless late fees* are assessed, and the remainder of the payment is applied to the principal balance. If you make a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest and fees, if applicable, are satisfied.
* The U.S. Department of Education does not assess fees for late payment of Federal Direct Loans.
Can I make a principal-only payment?
In order for a payment to go to your principal balance, all outstanding interest must first be satisfied, and the remainder of your payment will be applied to the principal balance.
I’d like to make a payment only to interest. How can I do that?
If your payments are currently suspended due to deferment, it will benefit you to continue making payments on the interest that accrues to avoid capitalization.
Any payment you make will, per regulation, be applied first to outstanding interest, unless late fees* are assessed, then your principal balance. Interest accrues daily; therefore, the amount of unpaid accrued interest changes daily. Any amount paid above interest accrued and late fees (if applicable) will be automatically applied to the principal balance.
* The U.S. Department of Education does not assess fees for late payment of Federal Direct Loans.
Why does the amount of interest my payment satisfies change each month?
Interest accrues daily; therefore, the amount of unpaid interest changes daily. Your current principal balance, interest rate and the number of days between payments determines the amount of interest that accrues each month.
Can I make payments via automatic debit?
Yes, Auto Pay allows you to make your student loan payments by automatically deducting them each month from a checking or savings account that you designate.
Payment Increases
Monthly payment amounts can increase when:
- Unpaid interest is capitalized – added to your unpaid principal balance – causing the interest to accrue on a higher balance, making your payments higher.
- Your loan has a variable interest rate and the rate increases.
- You’ve changed repayment plans.
- You elected a plan that temporarily lowered your payments for a period of time, which has now ended.
- Due to past periods of delinquency or inconsistencies in your payment history, an increase in your monthly payment is required in order to ensure the loan is paid off within its stated repayment term.
Loans Paid in Full
Once a loan is paid in full, consolidated, sold, or transferred, the loan’s status is reported to consumer reporting agencies.
Note that for 30 and up to 60 days after a loan is paid in full, the status may continue to reflect “In Repayment” online.
Who Sets interest Rates?
Interest rates on federal student loans are set by Congress.
All interest paid on U.S. Department of Education loans is deposited into the U.S. Treasury.
Interest rates on private loans are set by the lender at the time of loan origination.
The interest rate may be variable or fixed for the life of the loan, depending on the terms of your promissory note.
For variable rates, Congress or the lender sets the formula tied to a financial index that is used to periodically adjust your rate.
Past Due Payments
Interest accrues from disbursement until the loan is paid in full, regardless of whether you’re current or past due.
Benefits may be lost if your loan becomes past due – for example, you may lose an interest rate reduction benefit and your interest rate may increase.
What fees could potentially be added to my account?
Some lenders charge a late fee* if you do not make your payment on time. Usually, these fees are charged as a percentage of your monthly payment. Many lenders provide for a grace period before they charge a late fee. For example, if the lender’s grace period is fifteen days, a late fee would be charged sixteen days after the payment is due, if a payment has not been received.
* The U.S. Department of Education does not assess fees for late payment of Federal Direct Loans.
APR - Annual Percentage Rate
The Annual Percentage Rate (APR) is disclosed at the time you take out your loan. Refer to the disclosures issued to you during the application and disbursement process.
APR represents the annual cost of borrowing money, including interest, fees, and premiums, based on the expected term of your loan.
Interest Accrual
Interest begins to accrue on the day of disbursement and continues to accrue daily on your unpaid principal balance until the loan is paid in full.
The borrower is generally not responsible for the interest on Direct Subsidized and FFELP Subsidized Loans during in-school and grace periods, as well as during deferment periods.
Note that Congress temporarily eliminated the grace subsidy for Direct Subsidized Loans disbursed on and after July 1, 2012 and before July 1, 2014.
Refer to each loan’s promissory note for specific information regarding interest accrual and any applicable federal interest subsidy.
Capitalized Interest
Capitalization is when unpaid accrued interest is added to your unpaid principal balance.
For example, interest that is unpaid on some federal loans may capitalize quarterly during a forbearance period.
As a result of capitalization, more interest may accrue over the life of the loan, and the monthly payment amount may increase after capitalization.
Repayment Options
Can I postpone payment of my loan?
Deferment and forbearance options may be available to temporarily suspend payments. If you are unable to make payments of any amount, due to being in school, unemployment, experiencing economic hardship, or serving active duty in the military, deferment or forbearance may be the right option for you.
Traditional Repayment Plans
Three traditional repayment plans are generally available for federal loans:
- Standard
- Graduated
- Extended (with minimum qualifying balance)
Income-Driven Repayment Plans and the new SAVE plan
Income Driven Repayment (IDR) plans, including the new Saving on a Valuable Education (SAVE) plan (formerly the REPAYE plan), often provide a lower monthly payment compared to other plans as they are based on your income and family size rather than your loan amount. If your situation changes, you have options such as: having your IDR plan recalculated or switching to a new IDR plan.
You can apply online via StudentAid.gov/IDR. Follow the steps under “New IDR Applicants” to get started.
If I change my repayment plan, will the total amount I have to repay stay the same?
In general, the lower your monthly payment, the more interest you will pay over the life of your loan(s). Student loans accrue interest daily, so the longer you take to pay it back, the more interest you will accrue. You can use this Loan Simulator on StudentAid.gov to determine the amount of interest you would repay under various repayment plans.
Request a Deferment
A deferment is a federal student loan entitlement that allows you to postpone payments for a period of time.
You may be eligible if you’re unable to make payments while you’re in school, unemployed, experiencing economic hardship, or serving active duty in the military.
Additional less common types of deferment may be available, depending on the disbursement dates of your loans.
For eligible subsidized federal loans, you may not be responsible for interest that accrues during the deferment.
Note that Direct Subsidized Loans disbursed to first-time borrowers on or after July 1, 2013 may be subject to limitations on the maximum amount of interest the federal government will pay.
For other loans, you’re responsible for the interest that accrues during deferment.
For certain private loans that offer deferment options, you may be required to make payments while in deferment, according to each loan’s promissory note.
In-School Deferment
Federal student loans are generally eligible if you are enrolled at an eligible school at least half time. Payments aren’t typically required on federal loans while you’re in school.
If you’re eligible for an In-School Deferment and your school reports enrollment data to the National Student Clearinghouse or National Student Loan Data System, we should receive your information automatically and update your status accordingly.
If your school has not updated the National Student Clearinghouse or National Student Loan Data System, you can submit an In-School Deferment form so we can apply the deferment to your account.
Interest During Deferment
For eligible subsidized federal loans, you may not be responsible for interest that accrues during deferment.
Note that Direct Subsidized Loans disbursed to first-time borrowers on or after July 1, 2013 may be subject to limitations on the maximum amount of interest the federal government will pay.
Request a Forbearance
Forbearance allows you to postpone your payments temporarily. It’s offered to assist you in times of need.
You’re responsible for the interest that accrues during this time.
Interest that is unpaid may capitalize as often as quarterly and/or at the end of the forbearance period.
Capitalization is when unpaid accrued interest is added to your unpaid principal balance.
Impact of Forbearance
Keep in mind that interest will continue to accrue while in forbearance which could affect your repayment plan amount in the future. You can always make payments of any amount while in forbearance to reduce the impact of the interest if you are able.
How do I renew my IDR or have it recalculated?
Income Driven Repayment plans are required to be renewed annually. If you need to renew your IDR plan or have it recalculated due to a change in your financial situation, you may do so at StudentAid.gov/IDR. Follow the steps listed under “Returning IDR Borrowers” to get started.
What are the repayment options for the PLUS loan?
The Direct PLUS Loan Program for parents offers three repayment plans-standard, extended, and graduated-that are designed to meet the different needs of individual borrowers. The terms differ between the repayment programs, but generally borrowers will have 10 to 25 years to repay a loan.
What is the standard repayment plan for my loans?
The standard or “level” repayment plan is the default repayment schedule on any student loan. This plan automatically discloses payments for a 10 year repayment schedule with a $50 minimum monthly payment. However, the total time it takes to repay your loans may vary if you have a small balance.
What is the Income Sensitive Repayment Plan?
The Income Sensitive Repayment Plan lowers your monthly payment amount by basing your payments on a percentage of your income (from 4% to 25%). Borrowers must meet certain criteria to qualify for this plan. This plan only applies to loans that were disbursed under the Federal Family Education Loan Program (FFELP).
What is the Income-Contingent Repayment Plan?
The Income-Contingent Repayment Plan is only available for loans disbursed under the Federal Direct Loan Program (FDLP). Under this plan, the monthly payment amount is set based on your AGI, family size, interest rate and the outstanding balance on your loan(s). The monthly payment amount is adjusted annually based on changes in annual income and family size. There are additional benefits such as restricted capitalization, loan forgiveness, and interest subsidies that may also be available while on this repayment plan.
When do my loan payments begin?
FFELP Stafford and Direct Subsidized or Unsubsidized Loan
The first payment on your FFELP Stafford or Direct Subsidized or Direct Unsubsidized Loan will be due the very next month that follows the conclusion of your six-month grace period. For example, if your grace period ends in the month of December, your first payment will be due in January.
PLUS and GradPLUS Loan
For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.
PLUS Loans made to graduate and professional student borrowers (GradPLUS) may be deferred during the six-month period that begins the day after the end date of a deferment during which the borrower was enrolled at least half time. Interest will continue to accrue on the loan during these periods.
Loan Discharge and Forgiveness
How do I qualify for loan forgiveness?
Depending on your circumstances, you may be eligible to have your loan forgiven or discharged. You may review a complete list of the available loan forgiveness, cancellation and discharge options or you can visit StudentAid.gov/forgiveness.
Public Service Loan Forgiveness (PSLF)
PSLF is a federal program that forgives the remaining balance on your Direct Loans if you work full time for a qualifying employer AND make 120 qualifying payments under qualifying repayment plans.
Learn more about PSLFTeacher Loan Forgiveness
Under the Teacher Loan Forgiveness Program, if you teach full time for five complete and consecutive academic years in a low-income school or educational service agency, and meet other qualifications, you may be eligible for forgiveness of up to $17,500 on your Direct Subsidized and Unsubsidized Loans and your Subsidized and Unsubsidized Federal Stafford Loans.
Learn more about TLFDisability or Death
In the event of disability or death, federal student loans may be discharged (canceled).
Learn more about discharge and cancellationSchool Enrollment
In School
Federal student loans in the student’s name generally have an initial in-school period while the student is enrolled at least half-time, followed by a grace period, during which payments are not required.
Federal loans made to parents usually have no in-school period and enter repayment immediately after disbursement.
Interest may also accrue during this time on certain loans, as provided in each loan’s promissory note.
Even if you aren’t required to, making payments while you’re in school can help you in the long run. Any payments you make can save you money over the life of the loan.
I have a Parent PLUS loan and the student is in school
If you have a Parent PLUS loan and the student you took the loan out for is enrolled at an eligible school at least half-time, you may qualify for a Parent PLUS Borrower Deferment.
Tax Reporting
Form 1098-E
You may be able to deduct up to $2,500 of the interest you pay each year on qualified student loans, which could reduce your taxable income on your federal tax return.
Form 1098-E is a Student Loan Interest Statement for borrowers who have paid $600 or more in eligible student loan interest during the calendar year.
You may be able to deduct an amount lower than $600. Consult your tax advisor if you have questions.
The amount of interest paid on your student loan account is provided to you by the end of January each year. An IRS 1098-E, Student Loan Interest Statement may be mailed to you or the information may be available on your January billing statement or online, depending upon your loan program and the amount of interest paid.
Military Service Members
Military No-Interest Accrual Benefit
You are eligible for the Military No-Interest Accrual (MNIA) benefit while you are serving active duty or National Guard duty, during war, other military operations, or certain national emergencies, located in a hostile area that qualifies you for special pay (“MNIA Qualifying Duty”).
During MNIA Qualifying Duty, you do not have to pay interest on your Direct Loans made on or after October 1, 2008, for up to 60 months.
Other Military Benefits
There are more benefits beyond SCRA and the Military No-Interest Accrual that may help you as a service member.
For example:
HEROES Act Waiver
While you are on active duty, the U.S. Department of Education waives many documentation requirements attached to program benefits.
Student Loan Repayment Program
Borrowers are eligible if they are participating in a program that would qualify them for partial repayment of their loans by the Department of Defense.
Military Service Deferment
You may be eligible for a deferment during active duty or post-active duty.
Loan Consolidation
Apply to Consolidate Federal Loans
If you have at least one eligible federal loan that was not previously included in a federal consolidation, you may be eligible to consolidate through the Direct Consolidation Loan Program.
Note that if all of your federal loans are already part of a FFELP Consolidation Loan, under certain limited circumstances you may be able consolidate again through the Direct Loan Program.
Apply for Direct Consolidation at StudentLoans.govIs consolidation for me?
Learn more about consolidation and whether or not it’s right for you.
Credit Reporting Agencies
Is my loan activity reported to the credit bureaus?
Each loan that you take out has its own “tradeline” (i.e. account or line of credit) that is reported to the nationwide consumer reporting agencies. Depending on the number of years that you were in school, you may see several loans that will each display separately on your credit report. Note: This tradeline is not the same as your account number.
Where can I view my credit report?
You can order your free credit report online.
Rehabilitated Loans
Rehabilitation is an option for bringing a defaulted federal student loan back into good standing.
To rehabilitate your Direct Loan or FFELP loan, you must agree to a reasonable and affordable payment plan (as determined by the holder of the defaulted loan).
A rehabilitation agreement may entitle you to have the default status reported by the guarantor or the Department of Education removed from your credit report.
Rehabilitation does not remove accurate delinquency information reported by the lender or servicer prior to default.
