Repaying your student debt can be an overwhelming prospect, but there are resources available to help you plan and prepare. The information on this page page is intended to support your successful transition into federal student loan repayment.
Most of the information on this page is specific to the federal student loan program. Repayment options for the Reed Loan or alternative loans may vary, and borrowers should contact their loan servicer directly for assistance.
Exit Counseling
Complete Exit Counseling
All Federal Loan borrowers must complete Exit Counseling when leaving school or dropping below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.
You'll learn about what your federal student loan payments will look like after school and review repayment strategies that best suit your future plans and goals.
Begin Repayment
Review your Student Loan History
Log into your Federal Student Aid Dashboard to view your federal aid history, including federal student loans. Your FSA Dashboard should include your loan servicer(s), principal balance, and your payment due date(s) and amount(s).
Update your account with current contact information, including your mailing and email address.
Identify your Loan Servicer
Following disbursement of funds, your student loans are assigned to a third-party servicer who manage billing and repayment. You can identify your federal loan servicer through your FSA Dashboard, or by contacting the Federal Student Aid Information Center at 1-800-433-3243.
Consider your Repayment Options The Federal Student Aid Loan Simulator helps you calculate student loan payments and choose a loan repayment option that best meets your needs and goals. You can also use it to decide whether to consolidate your student loans.
Work with your Loan Servicer
Your loan servicer is your best resource for questions about repayment and consolidation options. Make sure your servicer has your correct phone number, email address, and mailing address so they may reach you with any important information regarding your loan repayment.
You should never have to pay to receive assistance in managing your federal student loans; your servicer will work with you for free. Beware of fraudulent payment requests or phishing attempts, and learn how you can avoid debt relief scams. Never share your FSA or loan servicer login credentials or any other sensitive information over the phone or email.
Loan Terms
Capitalization
Capitalization occurs when unpaid interest is added into the principal amount of a loan. Borrowers may avoid capitalization by paying interest as it accrues.
Consolidation
Consolidation refers to the process of combining two or more loans into a single new loans. Loan consolidation options can be discussed with your loan servicer.
Delinquency
A loan becomes delinquent as soon as a borrower misses a required payment. Extended delinquency may result in default status.
Default
Default status is assigned to a federal student loan when the borrower has failed to make a required payment for more than 270 days. One or more defaulted loans can negatively impact credit and may result in loss of eligibility for additional federal student aid.
Deferment
Deferment is a temporary postponement of loan payment. Borrowers may be eligible for in-school deferment while they are enrolled at least half-time in an eligible degree program.
Forbearance
Forbearance is a period during which a borrower is temporarily permitted to postpone payment, or to make smaller payments on their loan. Contact your servicer to inquire about forbearance.
Forgiveness
Loan forgiveness, cancellation or discharge all refer to the cancellation of a borrower's obligation to repay some or all of their remaining principal balance. The most common types of federal student loan forgiveness are the Teacher Loan Forgiveness Program and the Public Service Loan Forgiveness (PSLF) Program.
Grace Period
Federal Direct undergraduate loans have a six-month "grace period" following graduation or less than half-time enrollment. During this grace period, payment is not required. This grace period allows borrowers the chance to select a repayment plan.
Interest
Interest is paid by a borrower to a lender for the use of borrowed loan funds. Federal loans have an interest rate, which is the percentage of the unpaid principal amount at which interest accrues.
Principal
Principal refers to the amount of loan funds initially borrowed; it may also refer to the current amount owed on a loan.
Rehabilitation
Loan rehabilitation is a method of getting a student loan out of default status. Following rehabilitation, borrowers previously in default will regain eligibility for federal student aid. Rehabilitation is a one-time opportunity; borrowers will not have the option to rehabilitate if they default in the future.
To start the rehabilitation process, contact your loan servicer.
Servicer
Federal loan servicers are third-party entities assigned by Federal Student Aid to handle billing and repayment services on federal student loans. Your federal servicer will be your best resource for discussing your eligibility for loan consolidation, deferment, forbearance, and repayment options. You can find your servicer at StudentAid.gov or by calling the Federal Student Aid Information Center at 1-800-433-3243.
Student Loan Interest Statement
Student Loan Interest Statement, or IRS Form 1098-E, is a form used to determine a taxpayer's eligibility for student loan interest deduction. The form is provided by loan servicers to any borrowers who pay at least $600 in interest for a student loan within one calendar tax year.