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Student Loans/Student Debt

A topic guide to help students learn about student loans and how to manage them in addition to suggested resources and other information for beginning research on the topic Student Loan Debt.

🔁Overview

Student Loan Repayment: What You Need to Know

Repaying your student loans is a crucial step in managing your financial future. The U.S. Department of Education offers several repayment plans designed to fit different income levels and career paths. Your options include:

  • Standard Repayment: Payments are a fixed amount that ensures your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).

  • Graduated Repayment: Payments are lower at first and then increase, usually every two years. Payment amounts are designed to ensure your loans are paid off within 10 years (within 10 to 30 years for Consolidation Loans).

  • Extended Repayment: Payments can be fixed or graduated and will ensure that your loans are paid off within 25 years.

  • Income-Driven Repayment (IDR): IDR plans base your monthly payment amount on how much money you make and your family size. After satisfying a certain number of months of qualifying payments on an IDR plan, you can get the remaining balance of your loan(s) forgiven.

  • Visit studentaid.gov/loan-simulator to explore your options and get started on a repayment plan that works for you.

If you work in public service, education, or certain nonprofit roles, you may qualify for loan forgiveness programs like:

💸Income-Driven Repayment (IDR):

An income-driven repayment (IDR) plan bases your monthly student loan payment amount on your income and family size. For some people, payments on an IDR plan can be as low as $0 per month.

There are several income-driven repayment plans:

  • Income-Based Repayment (IBR) Plan

  • Income-Contingent Repayment (ICR) Plan

  • Pay As You Earn (PAYE) Repayment Plan

  • Saving on a Valuable Education (SAVE) Plan

📌To repay your federal student loans under an Income-Driven Repayment (IDR) plan, you must submit an application at studentaid.gov/idr.

🚨Trouble Making Payments? Here's What to Do

If you’re behind on your loans or worried about delinquency or default, take action now:

  1. Contact Your Loan Servicer
    They can help you understand your options and avoid default.

  2. Explore Income-Driven Repayment (IDR)
    Switching to an IDR plan can lower your monthly payments.

  3. If You’re in Default:

    • Loan Rehabilitation: Make on-time, affordable payments to restore your credit.

    • Loan Consolidation: Combine your loans into one and start fresh under an IDR plan.

  4. Understand the Risks of Default:

    • Wage garnishment

    • Loss of tax refunds

    • Damaged credit score

    • Ineligibility for federal aid

💬 Need Help? Contact a student loan advisor or financial aid office.

Organizations and Federal Resources for Student Loan Help