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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.



Repayment Options

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 plan.

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.

STANDARD REPAYMENT PLAN


Standard repayment plans include making monthly payments over 10 years. Generally, you will pay less interest over the life of your loan under a standard plan than an extended or income-driven plan.

   View Repayment Plan Info
Good to Know:
  •    Eligible Loans – Direct Subsidized and Unsubsidized Loan, PLUS Loans
  •    10 years repayment plan
  •    120 Equal Payments
  •    Most common plan
  •    Saves you money over time, because you will pay the least amount of interest over the life of your loan
  •    If you are considering Public Service Loan Forgiveness, this is not a qualifying repayment plan

GRADUATED REPAYMENT PLAN


Your payments start out low and increase every two years. The length of your repayment period will be up to 10 years. This plan may be right for you if you expect your income to increase steadily over time.

   View Repayment Plan Info
Good to Know:
  •    Eligible Loans – Direct Subsidized and Unsubsidized Loan, PLUS Loans, Consolidated Loans
  •    10 year repayment plan for Subsidized, Unsubsidized and Plus loans and 10-30 for Consolidated Loans
  •    Payment amounts begin lower and about every 2 years the amount increases to ensure loans are paid off in 10 years
  •    You‘ll pay more over time than under the 10-year Standard Plan
  •    If you are considering Public Service Loan Forgiveness, this is generally not a qualifying repayment plan

EXTENDED REPAYMENT PLAN


Extended repayment plans may be available if your total loan balance is over $30,000 in either Direct loans or FFELP, not a combination. These plans allow you to pay your loans over 25 years instead of 10. They may be good options if you need a lower monthly payment than a standard plan offers.

   View Repayment Plan Info
Good to Know:
  •    To be eligible, you must have more than $30,000 in outstanding Direct Loans
  •    25 Year repayment plan
  •    Payments may be fixed or graduated
  •    Monthly payments will be lower under the 10-year Standard Plan
  •    You will pay more over time than the 10-year Standard Plan
  •    If you are considering Public Service Loan Forgiveness, this is not a qualifying repayment plan

INCOME-DRIVEN REPAYMENT PLAN


Income-driven repayment plans allow you to make monthly payments that are based on your income and family size. As you earn more, you pay more. You'll need to provide some income information, such as a tax return, to qualify, and you'll also need to submit an Income-Driven Repayment application each year to remain in one of these plans.

   View Repayment Plan Info
Good to Know:
  •    To be eligible, you’ll need to submit an Income Driven Repayment application each year. The application requires income information, such as tax return, to be submitted
  •    Payments are passed on your income and family size
  •    As you earn more, you pay more
  •    You will pay more over time than other plans using the Income-Driven Repayment Plan
  •    If you're seeking Public Service Loan Forgiveness, you should repay your federal student loans under an income-driven repayment plan