Direct Loan repayment begins six months after graduation or six months after the your enrollment falls below half time. Once you enter repayment, you must make your payments on time to avoid delinquency and default.
Below is a brief summary of several repayment plans to choose from, including:
For more detail on the available repayment plans, information on consolidating your federal student loans, and to calculate your estimated loan payments, go to https://studentaid.ed.gov/sa/repay-loans.
For additional information and resources about repaying your federal student loans, go to https://studentaid.ed.gov/sa/sites/default/files/repaying-your-loans.pdf.
Making all of your loan payments on time is very important. If you find yourself in financial difficulty, contact your student loan servicer to find out what options you may have. Never ignore delinquency or default notices from your servicer.
Defaulting on your loan has serious consequences and may result in you losing eligibility for deferment, forbearance, repayment plans, and future student aid. Defaulted loans are assigned to a collection agency and the default will be reported to the credit bureaus, damaging your credit history. Your employer may have to garnish your wages and the loan holder can take legal action against you. In some professions, the borrower’s professional license can be revoked for a defaulted student loan. For more information on loan default and how to resolve it, go to https://studentaid.ed.gov/sa/repay-loans/default#consequences.