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.
Visit studentaid.gov for an overview of all of your federal student loans. You will need your FSA ID to access the information. If you don't have an FSA ID you can request one while you’re on this site.
Federal Family Education Loan (FFEL) Program
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 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.