Loan Repayment

 Being informed can help you take control of your finances

Office of Financial Aid and Scholarships

 

Loan Repayment Tips

Loan repayment can be an intimidating subject for borrowers. Whether you are considering borrowing or already in repayment, being informed can help you take control of your finances. Start by watching some videos and then review the links and resources provided below. 

Budgeting

Now is a good time to come up with a monthly budget. Try making a chart with your monthly payments including mortgage/rent, utilities, transportation, groceries, entertainment, non-monthly expenses (car insurance, vacation, repairs, etc.), and your estimated loan payment (based on your chosen repayment option). Compare this to your expected monthly salary.  Changing your spending habits now is an effective way to prepare for entering loan repayment. The U.S. Department of Federal Student Aid is a great resource for budgeting information.

Repayment Resources

Frequently Asked Questions

  • I'm worried about repaying loans. What can I do?

    Before you borrow any loan funds, remember to keep borrowing to a minimum. Borrow only what you need to cover necessary expenses, not extras. To lower your monthly payment, consider paying interest while in school or in your grace period before repayment. Unpaid interest is added to your loan balance (capitalized) when you enter repayment. 

    If you've already received a federal direct loan, contact a direct lender to talk about your repayment options. Consider these payments as a part of your monthly spending plan to decide on the best option for you. 

  • I'm already in repayment for a loan, but I'm having trouble making payments. What can I do?

    Contact a direct lender as soon as possible! They can help you! They can review your information to see if you qualify for a forbearance, loan forgiveness, cancellation, discharge, loan consolidation, or a change in your repayment option. 


    Don't go into default by not making payments! Not making payments can result in severe consequences like having your wages garnished, having your professional license revoked, and becoming ineligible for any federal aid in the future. Avoid all these problems by contacting a direct lender!

  • What is loan forgiveness?  How do I know if I qualify? 
    Some borrowers can have a portion of their entire loan forgiven or canceled. You may qualify if you perform volunteer work with certain organizations, work as an educator in certain areas, or are enlisted in the Army National Guard. Find out more about loan forgiveness.