Here is a partial listing of repayment options offered to borrowers:
Stafford Loan (lender-based loan) and Direct Loan
For further information on Direct Loan repayment plans, go to the Federal Student Aid website.
Consult your Stafford Loan lender or servicer concerning further details and/or options, change of address or payment problems.
Perkins Loan (campus-based loan)
Consult the campus/university or the billing servicer for the campus/university where you received the Perkins Loan for further details and/or options. Borrowers receiving Perkins Loans through UCLA should contact the UCLA Collections Office or UCLA’s billing servicer, Heartland ECSI (ECSI), concerning further details and/or options, change of address or payment problems.
Repayment Options Made Easy
To assist federal student loan borrowers facing repayment, a new web-based tool to help borrowers navigate the complexity of student loan repayment choices has been created. The online, interactive, information-only tool is geared to help student borrowers find their best repayment option in five steps or less. It also provides information on the ‘next steps’ to take. You can use the online tool without logging in to the site.
Access this new tool by clicking the “Find out your student loan repayment options here” link on the StudentLoans.gov homepage; or go there directly at StudentLoans.gov/RepayRepays
What is Income-Based Repayment (IBR)?
Income-Based Repayment (IBR) caps monthly federal loan payments at an affordable level, based on your income and family size. Benefits within this repayment plan also include loan forgiveness for those remaining in the program for 20 or more years (see http://studentaid.ed.gov/repay-loans/understand/plans/income-based for details); 10 years if you work in government, non-profit, or public service. If you owe more on your federal student loans than you earn in a year, you may benefit from IBR. The lower your income, the lower your monthly payment will be; and in some cases, as low as $0. IBR is available for almost all federal loans made by any lender, whether for college or graduate school.
If you work in a government, nonprofit, or other public service job, you could have your remaining student loan debt forgiven after just 10 years of IBR (or certain other payments). Your loans have to be in the federal Direct Loan Program to qualify; the 10 years of IBR need not be consecutive. You must make a total of 120 payments while working full-time for a public or nonprofit employer, starting on or after October 1, 2007.
For a more encompassing view, go to the Federal Student Aid website to read more on the IBR Plan.
Introduction to Repayment
Knowing ‘the basics’ before making that first payment
Understanding the many choices offered
Deferments / Forbearance / Cancellations
Making use of benefits
Determining the advantages and disadvantages