Frequently asked questions

When do I start repaying my loans?

Your first payment will be due when your grace period ends, which for most loans is six months after you graduate or drop below half-time enrollment.

IMPORTANT NOTE: It is your responsibility to know when and where to send your payments—do not wait to receive a payment notice or statement to make your payment. If you wait for your lender to contact you first, you may already have missed a payment.

If you do not know when and where to send your payment, go to the National Student Loan Data System (NSLDS), the central database for federal student loan information. You will find contact information so you can call you lender if you have any questions.

Can I get federal tax credit for paying tuition or interest on my student loan?

You may be able to take advantage of a number of federal tax benefits, including credits, deductions and savings incentives to offset your costs for college or career training. For more information on the most common benefits - including the student loan interest deduction, download our one-page overview, Federal Tax Benefits at a Glance.

Also, you will find details on all the tax benefits at the Internal Revenue Service website www.irs.gov/publications/p970/index.html.

What if I can’t afford to make my payments?

If you cannot afford the payment once it is due, your lender will work with you to try to find a solution that is affordable. Federal student loans offer several options, such as deferments and forbearances, as well as flexible repayment plans to help you until you get your finances in order. Find out more in our Get help paying section.

Most importantly, contact your lender to discuss your situation. If you do not know who your lender is, go to the National Student Loan Data System (NSLDS.), the central database for federal student loan information. This website will provide you contact information for your lender.

Where can I get a complete summary of my loans?

If you know who holds all of your loans, you can contact each of those entities to receive a personal loan statement.

If you are unsure who holds each of your loans, visit the National Student Loan Data System (NSLDS), which is the centralized database for federal student loans. If you have private or state loans, you will need to locate your promissory note for those loans or call your school for more information.

What is the difference between subsidized and unsubsidized loans?

With subsidized loans, the federal government pays the interest on the loans while you are in school, during your grace period and during any authorized periods of deferment. Examples of these types of loans include Perkins loans and subsidized Stafford loans.

In the case of unsubsidized loans, all the interest that accrues is your responsibility to pay. You have the choice of paying the interest quarterly or allowing the interest to accumulate until you enter repayment. Examples include PLUS loans and unsubsidized Stafford loans.

What’s a deferment?

A deferment is an authorized period of time during which you may postpone monthly payments. Deferments are granted by the lender under specific circumstances, such as unemployment or returning to school. Use our Deferment eligibility checker to see whether you qualify for a deferment. You may also contact your lender for help.

If you do not know who your lender is, go to the National Student Loan Data System (NSLDS), the central database for federal student loan information, including contact information. For private student loans, refer to your promissory note to find your lender’s contact information.

What’s a forbearance?

A forbearance is an authorized period of time during which a lender agrees to temporarily postpone payments or reduce your payment amount if you are experiencing short-term financial difficulties. Even though your payments are postponed, you will still be responsible for paying the interest that accrues on your loans, even on subsidized loans.

Can I pay all or part of my loans before payments are due (prepay)?

Yes, you may prepay your loans in part or in full at any time without any prepayment penalty, regardless of your repayment plan. If you can afford it, prepaying your loans is a good idea because it helps reduce the total cost of the loan.