Repaying your Loan

After you have been awarded your loan, your next greatest concern should be repayment of loans. Like any other loan, car loans or mortgages, you too need to be prepared to repay your federal student loan within the specified time frame.

Who do you repay your loan?

You have to repay your loan to your loan servicer. (A loan servicer is a company that takes payments on a loan, answers customer queries, and carries out other administrative tasks associated with maintaining a loan on behalf of a lender. A loan servicer is usually appointed by the US Department of Education).

Repayment Plans

There are several repayment plans that you can choose from. The amount and the time frame for repayment will depend upon the plan you choose. You can also consolidate your loans and apply for a loan consolidation.

Deferring, Forgiving or Canceling your Loan

You can postpone your loan repayment only temporarily while you are back in school, in the military, experiencing financial hardship, or in certain other situations. Cancellation is only permitted in circumstances such as certain kinds of teaching service, total and permanent disability, or the closure of the school where you were studying.