FEDERAL LOAN REPAYMENT ASSISTANCE
ASLA is here to help you make wise debt management decisions. We are available to answer your repayment
questions, help set up automatic debit to make your monthly payments or help find repayment options when
you are having financial difficulties.
If you are not sure who services your student loan, visit the National Student Loan Data System. You will be able to see a complete history of
your student loans, beginning balance, list of servicers and contact information.
DON'T DEFAULT ON YOUR STUDENT LOAN! Default is the term used for failure
to pay your student loan. There are many options available to postpone or lower your monthly payments to
avoid the risk of default.
The Federal government will impose serious consequences in an effort to collect student loan payments
including, but not limited to wage garnishment, liens on your tax refunds, negative credit reporting and
high collection fees.
If you have already defaulted on your student loan, you can still rehabilitate your loan out of
collections and back to a student loan servicer. To start the process, you will need to contact the
collection agency and make 9 on-time payments for an agreed upon amount. Payments can be as low as
$5/month based on your financial situation.
Your loan servicer can help you figure out what repayment option is best to help in your circumstance
whether it is an income-driven repayment plan, career-based forgiveness program or extended repayment
Deferment and forbearance are options to temporarily postpone your payments under special circumstances
such as returning to school, a loan forgiveness application review or unemployment.
It is important to understand how much you owe in principal on your loan versus how much you owe in
interest. You also need to be able to understand how paying just as little as $25 a month more on
principal can significantly reduce the amount of interest you pay over the life of the loan. You can run
the numbers yourself using this Student Loan Repayment Calculator.
The U.S. Department of Education offers several different repayment plans. You are encouraged to use the Federal Student Aid Loan Simulator to get an early look at what repayment plans you may be eligible for and to receive a comparison of estimated monthly payment amounts for all federal student loan repayment plans.