FAQS
You have questions, we have answers!
Confusion about the steps to take and how to take them is a major obstacle in student loan repayment.
Trust is essential for making progress in this financial matter. Make sure you are getting answers to your student loan questions from trusted sources and authorities.
The Authorities:
- https://studentaid.gov/ (U.S. Department of Education)
- https://studentloanborrowerassistance.org/ (NCLC)
Skip To The Section
In addition to these resources, you can also view and download NCLC’s Student Loan Toolkit here.
Whether you are just starting your student loan journey or have been dealing with student loan debt for decades, you can use the resources and materials in the toolkit to help you take charge of your student loan situation and achieve financial stability.
The toolkit explains the basics of the student loan system, how to assess your own student loan situation, and your options for managing your student loan debt. It includes fillable pages where you can record your own student loan information to help you work through your situation and track your progress toward becoming debt-free.
Finally, the toolkit includes information on how and when to get additional help with your student loans, as well as other useful resources.
Frequently Asked Questions About Student Loans
Federal Student Loan Repayment FAQs
I need to return to making payments, where do I start?
Federal student loan repayment has restarted. If you have not yet begun making payments on your student loans since the COVID-19 payment pause ended in September 2023, you should take steps now to return to repayment before the one-year on-ramp period ends in September 2024. If you sign up for an income-driven repayment plan, you may even be eligible for monthly payments as low as $0 per month while earning credit toward loan forgiveness.
What payment plans are available?
https://studentaid.gov/manage-loans/repayment/plans
There are several different payment plans available to help you pay off your student loans. Repayment plans can be based on your income or a fixed amount to pay off your loan in a certain number of years.
How do I find the best student loan repayment strategy?
https://studentaid.gov/loan-simulator/
The Department of Education’s Loan Simulator tool helps you estimate monthly payments and choose a loan repayment plan. The Loan Simulator tool can’t predict your future payments with 100% accuracy, so if you are not sure what option is best for you, reach out to a student loan advocate for more help.
How can I lower my student loan payment?
https://studentaid.gov/loan-simulator/
You may be able to lower your monthly student loan payment by switching payment plans. Consider an income-driven repayment (IDR) plan.
An 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 different IDR plans, and some may offer lower payments than others. You can use the Loan Simulator tool to compare repayment plans and find out which one is best for you.
What is an Income-Driven Repayment (IDR) plan?
https://studentaid.gov/manage-loans/repayment/plans/income-driven
An income-driven repayment (IDR) plan bases your monthly student loan payment amount on your income and family size. In some cases, your monthly student loan payment could be as low as $0 per month.
Under an IDR plan, your loans are forgiven after a certain number of years in repayment (10 to 25 years), depending on the types of loans you have, the repayment plan you’re enrolled in, and the amount you originally borrowed.
How can I pay my student loans off faster?
If you want to pay off your student loans quickly, consider a Standard plan. In the Standard plan, your payments are the same amount every month, and you will pay off your loan within 10 years (or up to 30 years for Consolidation Loans).
You will generally pay the least amount of interest under the Standard plan. You can also make extra payments to pay down your loans faster and reduce the amount of interest you pay.
If you work in public service, an income-driven repayment (IDR) plan may also be a good option to consider, as you may be eligible to have your loans forgiven after 10 years of qualifying payments.
The Loan Simulator tool can help you estimate monthly payments and choose a loan repayment plan based on your goals and circumstances.
What can I do if I am struggling with my student loan payments?
https://studentaid.gov/loan-simulator/
If you can’t afford your monthly payment or need more time to repay your loans, consider an income-driven repayment (IDR) plan. With an IDR plan, your payments are based on your income and family size and could be as low as $0 per month.
On an IDR plan, you are eligible to have any remaining balance on your loans canceled after 10 to 25 years of payment, depending on the plan you’re enrolled in, the types of loans you have, and the amount you originally borrowed.
Borrowers who work public service jobs and are eligible for PSLF may also be able to have their loans canceled after 10 years while making payments in an IDR or standard plan.
If you are already in an IDR plan and still can’t afford your monthly bill, you may be able to switch to a different IDR plan that offers lower payments. The Loan Simulator tool can help you estimate monthly payments and choose a loan repayment plan based on your goals and circumstances.
What if I need to pause my student loan repayment?
If you are unable to afford your student loan payments, you may be able to pause your student loan payments by asking your loan servicer for a forbearance. Before you ask your loan servicer to put your loans in forbearance, see if you are eligible for an income-driven repayment plan that could lower your payments to as little as $0 per month while earning credit toward loan forgiveness.
Are there loan cancellation and forgiveness options?
There are several programs to cancel some or all of your federal loans or have them forgiven, depending on your situation. Laws created these programs and specify requirements you must meet to get this relief. There are a number of federal student loan cancellation and forgiveness programs that you may be eligible for. You may be able to cancel your federal student loans if:
- your school closed and you did not complete your program;
- your school misled or lied to you about important information about the program you would attend, the outcomes of graduates, or the type of federal aid you’d receive, or they engaged in aggressive and deceptive recruitment;
- loans were taken out in your name without your knowledge;
- you have a serious disability that prevents you from working;
- you work in a public service job for 10 years after you leave school; or
- you are on an Income-Driven Repayment plan and have been in repayment for 10 to 25 years.
What is Public Service Loan Forgiveness (PSLF)?
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
If you’re employed by a government or not-for-profit organization, you might be eligible for the PSLF Program. The PSLF Program forgives the remaining balance on your Direct Loans after you’ve made the equivalent of 120 qualifying monthly payments under an accepted repayment plan, and while working full-time for an eligible employer.
What is the special on-ramp period?
https://studentaid.gov/manage-loans/repayment/prepare-payments-restart
The Department of Education announced an “on-ramp” period to help borrowers who are still struggling during the first year of repayment. From October 1, 2023, through September 30, 2024, borrowers with loans that were covered by the payment pause who miss payments during the on-ramp period will not be considered delinquent, have their loans placed in default, or be referred to debt collection agencies.
What does it mean to be in default on your loans?
https://studentaid.gov/manage-loans/default
You are in default on most federal student loans if you miss payments for nine months. Borrowers who were not in default before the COVID-19 payment pause ended and who miss payments between September 20, 2023, and September 30, 2024, will not be placed in default due to the special on-ramp period.
If you start to fall behind on student loan payments, don’t wait to get help. Contact your loan servicer to see if you are eligible for a more affordable payment plan, a deferment or forbearance, or another way to get temporary relief. If you are in default, you may be able to get out of default quickly and easily through the Fresh Start program.
What are the consequences of student loan default?
If you fall behind on your student loan payments, you need to act quickly to avoid defaulting. If you default on your federal student loans, the federal government has powerful tools to collect on the debt.
The government may be able to garnish your wages, seize your federal tax refunds, and even take a portion of your Social Security benefits to collect on your student loan debt. If you are in this situation, this does not mean you should give up. There are ways to recover even if you have already defaulted and experienced collection.
Due to the special on-ramp period, most collections on federal student loan debt have stopped through the end of September 2024, and most borrowers in default can get their loans out of default through the Fresh Start program.
How do I get out of default on my student loan?
Contact your loan holder and ask for Fresh Start before the end of September 2024. Your loans will then be removed from default and transferred to a new loan servicer. If you do not sign up for the Fresh Start program before the end of September 2024, your loans will remain in default, and you may face collection on your loans, such as wage garnishments, tax refund offsets, and Social Security offsets.
What is the Fresh Start Repayment program?
Fresh Start is a temporary program to help borrowers who have student loans in default get back into good standing quickly and easily. Borrowers can sign up for Fresh Start by creating an account at myeddebt.ed.gov, calling the Default Resolution Group at 1-800-621-3115, or calling their FFEL or Perkins loan servicer before the end of September 2024.
Is consolidation the right option for me?
There are many good reasons to consolidate, but whatever the reason, you should consider the pros and cons before consolidating. Once you consolidate, you cannot undo the consolidation—so make sure this is the right step for you.
Important: Only consolidate your loans using the federal Direct Consolidation Loan program. Consolidating or refinancing your federal student loans using a private loan refinancing or consolidation program will cause you to lose your federal student loan protections and benefits.
Finding My Federal Student Loan Information
How do I access my student loan information online?
https://studentaid.gov/fsa-id/create-account/launch
Whether you’re a student, parent, or borrower, you’ll need to create your own account to apply for, receive, and manage your federal student aid.
What is the difference between a federal student loan and a private student loan?
The majority of student loans that exist today are federal student loans. Federal student loans are loans that are made through special government programs.
It can be difficult to tell if you have federal loans or private loans, as the federal government can own federal student loans, in addition to private lenders, schools, and other entities. Any loans listed in your account on studentaid.gov are federal student loans, even if they are owned or serviced by a bank or school.
Private student loans are not listed on studentaid.gov, are backed by the federal government, and are issued directly by a bank, lender, or other institution outside of the federal student loan program.
What type of federal student loan do I have?
Over the years, there have been a number of different types of federal student loans issued to borrowers. It is important to know exactly what type of loans you have because you have different options for managing your student loan debt depending on the loan type.
If your loan doesn’t qualify for a benefit or program you want to take advantage of, you may be able to consolidate your loan into a new Direct Consolidation Loan to become eligible.
The most common types of federal student loans are Direct Loans, Parent PLUS Loans, Graduate PLUS Loans, Stafford Loans, Consolidation Loans, Perkins Loans, and Federal Family Education Loans (FFEL). Federal student loans can either be subsidized or unsubsidized.
How do I find information on my student loans?
The first thing you should do is log in to your account on studentaid.gov. Your loan details will be listed on your dashboard.
Who holds my student loans?
A loan holder is the owner of your student loans. Most federal student loans are owned and held by the federal government through the Department of Education. There are some older federal student loans that are owned and held by a private company or other entity. Examples of loans that can be held either by the Department or by another entity include FFEL and Perkins loans.
What is a student loan servicer? How can I figure out who my student loan servicer is?
https://studentaid.gov/manage-loans/repayment/servicers
A loan servicer is a company assigned to handle the billing and other services on your federal student loan on our behalf, at no cost to you. Your loan servicer will work with you on repayment options (such as income-driven repayment plans and loan consolidation).
Your loan servicer handles most aspects of your student loans, including billing, repayment, and tracking your student loan repayment progress. You can determine who your loan servicer is by logging into your account on studentaid.gov.
In addition to your studentaid.gov account, you should create an online account with your loan servicer so that you can track and manage your student loans easily. If you do not have an online account, contact your loan servicer to create one.
Private Student Loan FAQs
What is the difference between a federal student loan and a private student loan?
The majority of student loans that exist today are federal student loans. Federal student loans are loans that are made through special government programs. It can be difficult to tell if you have federal loans or private loans, because federal loans can be owned by the federal government private lenders, schools, or other entities.
Any loans listed in your account on studentaid.gov are federal student loans, even if they are owned or serviced by a bank or school. Private student loans are not listed on studentaid.gov, are not backed by the federal government, and are issued directly by a bank, lender, or other institution outside of the federal student loan program.
What if I am in default on a private student loan?
Defaulting on private student loans may occur after your first or just a few missed payments. The lender may collect it, but it might also turn the debt over to a collection agency or even write off and sell your debt to a third-party debt collector. The lender or collection agency may sue you to collect on a debt.
Where can I find my private student loan information?
Private student loans are not listed on studentaid.gov because they are not issued or managed by the federal government. If you know who your private loan servicer is, you can log in to your online account with the servicer, or call your servicer to get your loan information.
Unlike federal loans, there isn’t a central place that stores all of your private student loan information. However, your private student loans may be listed on your credit reports.
Because federal student loans are usually listed on your credit reports too, it may be hard to tell if the loan listed is a federal loan or a private loan. If the loan is labeled as “Department of Education,” “DEPT of ED,” or “DEPTED,” it is likely that it is a federal loan, but not all federal loans are listed this way on a credit report.
Getting More Help
I have a problem with my student loans, how can I file a complaint about my issue?
https://dfpi.ca.gov/backontrack/
If you have problems with your student loans, you may be able to get help with your problem by contacting your lender or loan servicer’s complaint department. If your problem is not resolved, you can file a complaint with the Department of Education Federal Student Aid Ombudsman office or the California DFPI’s Student Loan Ombudsperson.
What if I need legal help with my student loans?
https://studentloanhelp.dfpi.ca.gov/help/
There are limited legal resources to assist student loan borrowers, but some options do exist. There are legal aid and legal services organizations in every state that provide free legal help to people whose incomes fall below certain amounts or to people who meet other requirements.
In California, the DFPI Student Loan Empowerment Network includes free legal help for eligible borrowers in need of more assistance. Fill out an intake form to be matched to a Network legal aid organization.
What is Public Service Loan Forgiveness (PSLF)?
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service
If you’re employed by a government or not-for-profit organization, you might be eligible for the PSLF Program. The PSLF Program forgives the remaining balance on your Direct Loans after you’ve made the equivalent of 120 qualifying monthly payments under an accepted repayment plan, and while working full-time for an eligible employer.
Actually… I need something else.
I learn best by watching videos.
Then check out this extensive library of videos provided by NCLC for student loan borrowers.
I Need Support.
None of the FAQs were helpful and/or my situation is complicated and I could use 1:1 support.