Students and who have borrowed a federal loan are required to repay the amount of funds borrowed, with interest according to the terms of the promissory note that was signed. The loan repayment period is usually ten years.
For student loans, students who have been withdrawn or have completed their requirements will enter their grace period. When the allotted grace period has ended, the student will begin repayment on a monthly basis on the loans borrowed.
For Federal Stafford Loans, repayment begins six months after the student graduates, withdraws, or stops attending school at least half time. Students who are not continuously enrolled for each term during the academic year are in jeopardy of losing their grace period.
There are numerous options such as loan consolidation, deferment, and forbearance that can extend the repayment period, depending upon your circumstances.
Federal Student Loan Repayment Options
In this repayment method, equal monthly payments of principal and interest are made over the loan repayment term (usually ten years). You'll pay the least amount of total interest using this payment plan.
In this plan, monthly payment amounts are calculated as a percentage of monthly gross income. As your income may change, you must reapply for this plan every year.
This repayment method payment allows you to make reduced payments in the earlier years of your loan repayment term, with a gradual increase in payment amount over time.
If the total balance of your Federal Stafford, PLUS, or Consolidation loans is above $30,000, you may apply for an extension on your repayment term (up to 25 years).
You may pay all or part of your loan balance during the term of the loan without penalty. This will greatly reduce the total interest paid on your loans.
Once you have signed a promissory note for a loan, you are subject to all of the terms and conditions. If eligible, you will be awarded loans as part of your financial aid package. It is your responsibility to notify the Financial Aid Office in writing if you do not wish to accept the loans offered. Repayment on loans is required regardless of your being notified of your debt. It is a student's responsibility to know when repayment is due.