Question

What do I need to do to prepare for repaying my loans?

Answer

Find out who your loan servicer is by logging into your account on StudentAid.gov. Many previously assigned loan servicers were changed to new companies during the repayment pause.

Action

Borrowers can log in to their Department of Education StudentAid.gov account. This will provide critical information on your student loans and your servicer, including the servicer’s contact information. 

Question

What is a loan servicer?

Answer

A company that is assigned to handle the billing and other services on your federal student loan on our behalf. Your loan servicer will work with you on repayment options (such as income-driven repayment plans and loan consolidation) and will assist you with other loan-related questions.

Action

Make sure your contact information is up-to-date on StudentAid.gov so they can contact you with important information.

Question

How can I make my loan payments?

Answer

Set up an online account with your loan servicer to access your student loan information. Confirm what repayment plan you are on and determine whether you need to change your plan or request a change to your payment amount. If you had auto-debit in the past, review your enrollment or sign up for the first time.

Action

Contact information for loan servicers can be found here.

Question

What are my repayment options? 

Answer

If you are unsure how you will pay off your loan, are considering borrowing more, or are looking for the best repayment strategy, there are websites that can help you figure out your options. 

Action

Check out this helpful information for options and payment simulators to find a repayment plan that meets your needs and goals.

Question

How can I find out how much my payments will be and exactly when they are due?

Answer

Once the payment pause ends, you’ll receive your billing statement or other notice at least 21 days before your payment is due. This notice will include your payment amount and due date. Payments will restart in October 2023, with interest resuming in September 2023.

Action

You can get an estimate of your payment amount and due date by contacting your loan servicer. 

Question

What if I cannot afford my monthly payments?

Answer

You may be able to lower your monthly student loan payment by enrolling in an income-driven repayment (IDR) plan. Under an IDR plan, payments are based on your income and family size. 

Action

Apply for an IDR plan and select the box to be placed on the repayment plan that will provide you with the lowest monthly payment.

Question

How does having a loan impact my ability to go back to school?

Answer

Having an outstanding student loan does not impact your ability to attend school if it is in good standing. However, if that loan ends up in default, it would need to be brought into good standing before you could take out another loan. Often, returning to school could put a pause on your required loan payments while you are enrolled.

Action

Connect with your institution’s financial aid office for clarity around your financial aid and loan eligibility.

Check with your loan servicer if you are unsure if your loan is in good standing or to begin the process of coming out of default.

Question

Is it true the SAVE act will make my payments $0 per month?

Answer

The Saving on a Valuable Education (SAVE) act is an Income Driven Repayment plan (IDR) which could lower many payers' monthly repayments to half of what they were previously -- even down to $0. It also raises the qualifying amount income so more are eligible as well as forgiving loan balances after 10 years of payments. The plan eliminates 100% of the remaining interest for both subsidized and unsubsidized loans after a scheduled payment is made.

Action

For more information and to check qualifications and apply, visit the SAVE page on StudentAid.gov.

Question

What if I’m just not able to restart my loan payments?

Answer

The Department of Education is instituting a 12-month “on-ramp” to repayment, running from October 1, 2023 to September 30, 2024, so that financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies. However, interest will accrue for those eligible.

Action

Always stay in communication with your loan servicer around repayment options and make sure you are set up for the best available payment plan.