Federal Loan Repayment

The following quick steps can get you started on federal loan repayment (click on individual images below to enlarge) . Find out more at studentaid.gov.

Log in to studentaid.gov with your FSA ID. Login window. Text: Your FSA ID (the same you used to complete your FAFSA) will include a username and password. Once logged in, update your personal information and confirm your student loan servicer.

Confirm your student loan servicer. Text: Your servicer may vary depending on the type of loan you have. If you don't know who your servicer is, log on to studentaid.gov and visit the "My Loan Servicers" section of your dashboard.

Log in to your servicer account and update your contact information. Create an account or log in to an existing one via the servicer's website. Review and update your personal contact information, including your email and mailing address, so your servicer can reach you.

Reauthorize or select auto debit for monthly payments. If you were previously signed up for automatic debit before the payment pause began, you must reauthorize or select automatic debit through your loan servicer account to allow your monthly payments to be automatically withdrawn from your bank account.

Review your payment due date and amount. Make note of your monthly payment amount and the due date of your first payment on your servicer account, and update any changed banking information.

What You Need to Know About Student Loan Default

Avoid Default by Knowing Your Options
Applying for Income Driven Repayment (IDR) is a good option for most students going into loan repayment who cannot afford the standard 10 year repayment plan. If IDR does not work for you, you may be able to postpone payments by applying for forbearance through your loan servicer. There are also loan forgiveness and discharge options for students for borrowers who qualify. Always consult your loan servicer to determine what works best for you. You can also find more guidance on avoiding default at studentaid.gov.

Problems with Loan Servicers
Some students experience issues with their loan servicer that impact their ability to manage their loan debt. In those cases, there are Loan Ombudsman Resources through the Department of Education help students. Certain states also have resources to assist students who are experiencing issues with lenders. In the state of Oregon there is the Oregon Division of Financial Regulation that provides information and assistance to borrowers.

What Happens with Student Loan Default?
Most types of federal student loans will go into default after 270 days of non-payment. Once you are in default you become ineligible for new federal financial aid and the default status will be reported to the credit bureaus. Being in default can make it harder to do everyday things like renting an apartment or buying a car. Having a default on your record can even prevent you from being hired for certain types of jobs. Your wages or Social Security benefits may also be garnished based on your default status.

Getting Out of Default
The 3 main options for getting out of default are full repayment, loan rehabilitation, and loan consolidation. These options are not available to all borrowers. Work with your loan servicer to find your best path out of default.

Beware of scams
You might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee. You never have to pay for help with your federal student loans. Your loan servicer will be your partner in repayment. You can confirm your loan servicer information at studentaid.gov.