Student Loan Repayment
Make a Plan to Manage What You Borrowed
Student loan repayment is easier to manage when you understand your loans, know when payments begin, and stay connected with your loan servicer.
Whether repayment is still months away or you've already started making payments, take time to understand:
- How much you owe
- Who manages your loans
- When payments are due
- Which repayment options are available
- What to do if you can't afford your payment
- Whether you may qualify for forgiveness or discharge
Don't wait until there's a problem to learn how repayment works.
Know What You Owe
Start by reviewing your complete student loan picture.
For federal student loans, log in to your StudentAid.gov account to review information including your:
- Federal student loan balance
- Interest rates
- Loan status
- Current repayment plan
- Next payment due
- Loan servicer
Your loan servicer handles billing and other services related to your federal student loans.
If you also have private student loans, review your accounts directly with each private lender or servicer.
Keep Your Information Current
Make sure your email address, phone number, mailing address, and other contact information are current with your loan servicer and in your StudentAid.gov account.
You don't want to miss important information about your loans or payments.
Know When Repayment Begins
Federal student loans generally enter repayment after you:
- Graduate
- Leave school
- Drop below half-time enrollment
Direct Subsidized and Direct Unsubsidized Loans generally have a six-month grace period before regular payments are required. Other federal loans may have different repayment rules.
Use the time before your first payment to:
- Review your loan balances
- Confirm your loan servicer
- Review your repayment options
- Estimate your monthly payment
- Add the payment to your budget
- Make sure your contact information is current
Your loan servicer will provide information about when your first payment is due and how much you are required to pay.
Understand Your Repayment Options
Federal student loans offer different repayment options.
Depending on your loans and when they were borrowed, you may have access to plans that:
- Set payments based on a fixed repayment schedule
- Base payments on your income and family size
- Provide different repayment periods
Federal repayment programs and eligibility requirements can change, so don't choose a plan based on outdated information or what worked for someone else.
Use the Federal Student Aid Repayment Calculator to see which plans may be available to you and compare:
- Estimated monthly payment
- Repayment period
- Total amount repaid
- Total interest paid
Then choose the option that fits your financial situation and long-term goals.
Compare Federal Student Loan Repayment Options →
Build Your Payment Into Your Budget
Your student loan payment is one part of your monthly financial picture.
Your budget may also include:
- Housing
- Utilities
- Food
- Transportation
- Insurance
- Health care
- Phone and internet
- Savings
- Credit cards or other debt
- Personal expenses
Make sure your repayment plan fits within your overall budget.
A lower monthly payment may provide more room in your budget, but it can also mean making payments for a longer period of time and potentially paying more interest.
Compare both the monthly payment and total repayment cost when evaluating your options.
Build Your Money Management Skills →
Make Your Payments on Time
Pay at least the required amount by the due date each month.
Your loan servicer will tell you:
- Your payment amount
- Your due date
- How to make payments
- Where to manage your account
Consider automatic payments if they make sense for your budget.
Even with automatic payments, continue reviewing your account regularly to make sure payments are being processed correctly and your loan information is accurate.
You Can Pay More Than the Minimum
You don't have to limit yourself to the required monthly payment.
If your budget allows, paying additional money toward your student loans can help you:
- Pay off your debt sooner
- Reduce the amount of interest you pay
- Lower your total repayment cost
Before making additional payments, understand how your loan servicer applies extra payments to your account.
Even small additional payments can make a difference over time.
What If You Can't Afford Your Payment?
Don't ignore your student loan bill.
If you're having trouble making payments, contact your loan servicer before you miss a payment whenever possible.
Depending on your loans and circumstances, you may be able to:
- Change your repayment plan
- Apply for a repayment option based on income
- Request a temporary deferment
- Request a temporary forbearance
Deferment and forbearance may temporarily postpone or reduce payments, but interest may continue to accumulate depending on the loan and type of relief.
They should generally be considered temporary solutions rather than long-term repayment strategies.
The most important step is to ask for help early.
Avoid Delinquency and Default
Missing student loan payments can have serious consequences.
A federal student loan becomes delinquent when a required payment isn't made by the due date.
Continued delinquency can lead to:
- Negative credit reporting
- Additional collection activity
- Default
- Loss of eligibility for additional federal student aid
- Other financial consequences
Federal student loans generally enter default after scheduled payments haven't been made for at least 270 days.
If you've missed a payment, don't wait for the situation to get worse.
Contact your loan servicer and explore your options for getting back on track.
If your federal student loan is already in default, use official Federal Student Aid resources to understand your options for resolving the default.
Get Help With a Defaulted Federal Student Loan →
Understand Loan Forgiveness, Cancellation and Discharge
Some federal student loan borrowers may qualify to have some or all of their remaining debt forgiven, canceled, or discharged under specific circumstances.
Programs may be connected to:
- Public service employment
- Teaching
- Certain other professions or service programs
- Total and permanent disability
- School-related circumstances
- Other qualifying situations
Iowa and other organizations may also offer loan repayment assistance programs for individuals working in certain professions or communities.
Eligibility requirements vary significantly by program.
Don't Assume Your Loans Will Be Forgiven
If you're considering a career that may qualify for loan forgiveness or repayment assistance, research the program carefully.
Understand:
- Which loans qualify
- Which employers or positions qualify
- What payments or years of service are required
- What documentation you must complete
- Whether you must use a particular repayment plan
- What requirements you must continue meeting
Loan forgiveness can be valuable for eligible borrowers, but it shouldn't be used to justify borrowing more than you otherwise need.
Explore Federal Student Loan Forgiveness Programs →
Public Service Loan Forgiveness
The Public Service Loan Forgiveness (PSLF) Program may forgive the remaining balance on eligible Direct Loans after a borrower meets the program's requirements, including qualifying employment and qualifying payments.
If you work—or plan to work—in public service, learn about the program early rather than waiting until you've been making payments for years.
Use official Federal Student Aid resources to:
- Check employer eligibility
- Understand qualifying loan requirements
- Track your progress
- Submit required information
Learn About Public Service Loan Forgiveness →
Profession-Based Repayment Assistance
Some professions have additional loan repayment or forgiveness opportunities.
Programs may be available for eligible:
- Teachers
- Health care professionals
- Nurses
- Attorneys
- Public service employees
- Other professionals serving designated communities or populations
Iowa also offers certain state loan repayment and forgiveness programs.
Programs, funding, eligibility requirements, and application periods can change.
Research opportunities related to your profession and location, and verify current requirements with the organization administering the program.
Be Careful Before Refinancing Federal Student Loans
Refinancing means taking out a new private loan to pay off one or more existing student loans.
A lower interest rate may sound appealing, but refinancing a federal student loan into a private loan is an important decision.
Once a federal loan becomes a private loan, you may lose access to federal benefits such as:
- Federal repayment options
- Federal deferment and forbearance protections
- Certain federal forgiveness programs
- Certain federal loan discharge provisions
Those federal benefits generally can't be restored once the federal loan has been refinanced into a private loan.
Compare more than the interest rate before making a decision.
Stay Engaged Until Your Loans Are Paid
Student loan repayment can last for years.
Throughout repayment:
- Review your loan accounts regularly
- Read communications from your servicer
- Keep your contact information current
- Make payments on time
- Review your repayment plan when your finances change
- Contact your servicer if you're struggling
- Keep records related to repayment or forgiveness programs
- Watch for student loan scams
Don't pay a company simply to access federal student loan services that are available through Federal Student Aid and your federal loan servicer.
Your Repayment Plan Can Change With Your Life
Your financial situation today may not be the same five years from now.
You may:
- Change jobs
- Earn more or less
- Return to school
- Get married
- Have children
- Experience financial hardship
- Become eligible for a forgiveness or repayment assistance program
Continue reviewing your student loans as your circumstances change.
Stay in Control of Your Student Loans
Know what you owe.
Choose a repayment strategy.
Make payments on time.
Ask for help early.
Review your plan as your life changes.
Review Your Federal Student Loans →
Compare Repayment Options →
Explore Loan Forgiveness →
Build Your Money Management Skills →
