The consequences of defaulting cannot only impact your ability to borrow but can impact your finances as well. Consequences include the following : The entire unpaid balance of your loan and any interest you owe becomes immediately due this is called " acceleration ". You can no longer receive deferment or forbearance , and you lose eligibility for other benefits, such as the ability to choose a repayment plan. You lose eligibility for additional federal student aid. The default is reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card. It may take years to reestablish a good credit record. You may not be able to purchase or sell assets such as real estate. Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan this is called Treasury offset. Your wages may be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan. Your loan holder can take you to court. You may be charged court costs, collection fees, attorney s fees, and other costs associated with the collection process. Your school may withhold your academic transcript until your defaulted student loan is satisfied. The academic transcript is the property of the school , and it is the school's decision not the U.S. Department of Education s or your loan holder s whether to release the transcript to you.


If You Are Delinquent or In Default , Your Loan Servicer Can Help


If you're having trouble making payments or are concerned about the status of your federal student loan , you have options available to you.


Contact your loan servicer to discuss how to get back on track with payments. There are several affordable repayment options that you may be able to take advantage of to continue making loan payments even when times are tough.


My Loan Was Mistakenly Put in Default


If you believe your loan has been placed in default by mistake , here s what you can do to correct the error.


Defaulted Federal Loan Servicer


MAXIMUS Federal Services, Inc., is the loan servicer for defaulted federal student loans over 360 days delinquent.


Public Service Loan Forgiveness (PSLF)


If you are employed by a U.S. federal, state, local, or tribal government or not - for - profit organization , you might be eligible for the Public Service Loan Forgiveness Program. Keep reading to see whether you might qualify.


Alert! If your PSLF application is denied because some or all of your payments were not made under a qualifying repayment plan for PSLF , you might still be eligible for forgiveness through Temporary Expanded Public Service Loan Forgiveness. Learn more.


The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full - time for a qualifying employer.


PSLF Resources Public Service Loan Forgiveness PSLF Help Tool Public Service Loan Forgiveness : Employment Certification Form Public Service Loan Forgiveness : Application for Forgiveness Public Service Loan Forgiveness Program FAQ


Qualifying for PSLF


To qualify for PSLF , you must be employed by a U.S. federal, state, local, or tribal government or not - for - profit organization ; work full - time for that agency or organization ; have Direct Loans or consolidate other federal student loans into a Direct Loan ; repay your loans under an income - driven repayment plan; and make 120 qualifying payments.


To ensure you re on the right track , you should submit a Public Service Loan Forgiveness: Employment Certification Form annually or when you change employers. We ll use the information you provide on the form to let you know if you are making qualifying PSLF payments. This will help you determine if you re on the right track as early as possible.


Qualifying Employment


Qualifying employment for the PSLF Program isn t about the specific job that you do for your employer. Instead , it s about who your employer is. Employment with the following types of organizations qualifies for PSLF : Government organizations at any level U.S. federal, state, local, or tribal Not - for - profit organizations that are tax - exempt under Section 501 of the Internal Revenue Code


Serving as a full - time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the PSLF Program.


The following types of employers do not qualify for PSLF : Labor unions Partisan political organizations For - profit organizations, including for - profit government contractors


Contractors : You must be directly employed by a qualifying employer for your employment to count toward PSLF. If you re employed by an organization that is doing work under a contract with a qualifying employer , it is your employer s status not the status of the organization that your employer has a contract with that determines whether your employment qualifies for PSLF. For example , if you re employed by a for - profit contractor that is doing work for a qualifying employer , your employment does not count toward PSLF.


Other types of not - for - profit organizations : If you work for a not - for - profit organization that is not tax - exempt under Section 501 of the Internal Revenue Code, it can still be considered a qualifying employer if it provides certain types of qualifying public services. However , in our experience , few organizations meet these criteria.


Full-time Employment


For PSLF , you re generally considered to work full - time if you meet your employer s definition of full - time or work at least 30 hours per week, whichever is greater.


If you are employed in more than one qualifying part - time job at the same time , you will be considered full - time if you work a combined average of at least 30 hours per week with your employers.


If you are employed by a not - for - profit organization , time spent on religious instruction, worship services, or any form of proselytizing may not be counted toward meeting the full - time employment requirement.


Eligible Loans


Any loan received under the William D. Ford Federal Direct Loan Direct Loan Program qualifies for PSLF.


Loans from these federal student loan programs don't qualify for PSLF: the Federal Family Education Loan FFEL Program and the Federal Perkins Loan Perkins Loan Program. However , they may become eligible if you consolidate them into a Direct Consolidation Loan.


Student loans from private lenders do not qualify for PSLF.


If you consolidate your loans , only qualifying payments that you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the loans before you consolidated them don t count.


The PSLF Help Tool will tell you whether you need to consolidate some or all of your loans.


Qualifying Payments


A qualifying monthly payment is a payment that you make after Oct. 1 , 2007 ; under a qualifying repayment plan ; for the full amount due as shown on your bill ; no later than 15 days after your due date ; and while you are employed full - time by a qualifying employer.


You can make qualifying monthly payments only during periods when you re required to make a payment. Therefore , you can t make a qualifying monthly payment while your loans are in an in-school status, the grace period , a deferment , or a forbearance.


If you want to make qualifying payments, but you re in a deferment or forbearance , contact your federal student loan servicer to waive the deferment or forbearance.


Your 120 qualifying monthly payments don t need to be consecutive. For example , if you have a period of employment with a nonqualifying employer , you will not lose credit for prior qualifying payments you made.


The best way to ensure that you are making on - time, complete payments is to sign up for automatic debit with your loan servicer.


Can I qualify sooner by making higher monthly payments?


No. If you make a monthly payment for more than the amount you are required to pay , you should keep in mind that you can receive credit for only one payment per month, no matter how much you pay. You can t qualify for PSLF faster by making larger payments.


If you want to pay more than your required monthly payment amount , you should contact your servicer and ask that the extra amount not be applied to cover future payments. Otherwise, you may end up being paid ahead , and you can t receive credit for a qualifying PSLF payment during a month when no payment is due.


What if I m in AmeriCorps or the Peace Corps, or my loans are being repaid by the U.S. Department of Defense?


There are special rules that allow borrowers who are AmeriCorps or Peace Corps volunteers to use their Segal Education Award or Peace Corps transition payment to make a single lump - sum payment that may count for up to 12 qualifying PSLF payments.


In addition , borrowers who have lump - sum payments made on their behalf under a student loan repayment program administered by the U.S. Department of Defense may also receive credit for more than one qualifying PSLF payment.


Qualifying Repayment Plans


Qualifying repayment plans include all of the income - driven repayment IDR plans plans that base your monthly payment on your income.


While payments made under the 10-year Standard Repayment Plan are qualifying payments , you would have to change to an IDR plan to benefit from PSLF. Under the 10-year Standard Repayment Plan , your loans will be paid in full once you have made the 120 qualifying PSLF payments and there will be no balance to forgive. Before you change to an IDR plan , however , you should understand that your payment may increase under these plans depending on your income and the amount that you owe. If this is the case for you, and you do not wish to pay this higher amount , then the PSLF Program may not benefit you.


The following repayment plans do not qualify for PSLF : Standard Repayment Plan for Direct Consolidation Loans Graduated Repayment Plan Extended Repayment Plan Alternative Repayment Plan


PSLF Process


Because you have to make 120 qualifying monthly payments , it will take at least 10 years before you can qualify for PSLF.


Important : You must be working for a qualifying employer at the time you submit the application for forgiveness and at the time the remaining balance on your loan is forgiven.


If you are working toward PSLF , you should complete and submit the Public Service Loan Forgiveness: Employment Certification Form often referred to as the ECF annually or when you change employers.


If you have made 120 qualifying payments , you should fill out and submit the Public Service Loan Forgiveness: Application for Forgiveness PSLF application.


Either way , we ll use the information you provide on the form to let you know if you are making qualifying PSLF payments. This will help you determine if you re on the right track as early as possible.


Alert! If you don t periodically submit the Employment Certification Form , then at the time you apply for forgiveness , you will be required to submit an Employment Certification Form for each employer where you worked while making the required 120 qualifying monthly payments.


Public Service Loan Forgiveness (PSLF) Help Tool


The PSLF Help Tool will help you understand more about the PSLF Program and what you need to do to participate and possibly have your loans forgiven ; help you assess whether your employer qualifies for PSLF ; help you assess whether your loans qualify for PSLF ; help you decide which PSLF form to submit ; and use the information we have about your federal student loans to explain other actions you should or must take if you want to receive PSLF.


At this time , the PSLF Help Tool won t allow you or your employer to electronically sign the forms that the tool will generate for you. Therefore , after you complete the PSLF Help Tool process , you will need to print the PDF document that the tool generates, sign it yourself, have your employer sign it, and then submit the form to the PSLF servicer as instructed on the printed PDF document.


Employment Certification Form Process


After you submit an Employment Certification Form , your loans will transfer to the PSLF servicer. After the PSLF servicer determines how many qualifying payments you made during the period on your Employment Certification Form , you ll receive a letter telling you the number of qualifying payments you have made.


The number of qualifying payments you have made will only be updated whenever you submit another Employment Certification Form or PSLF application that documents a new period of qualifying employment.


You can find out how many qualifying payments you ve made by logging in to your account with the PSLF servicer and viewing your loan details or by looking on your most recent billing statement.


Employment Certification


Your employment can be certified by an official who has access to your employment or service records and is authorized by your employer to certify your employment or your service as an AmeriCorps or Peace Corps volunteer. This will often be someone in the human resources department, though in some cases your direct supervisor or another individual may be authorized to certify your employment. Check with your organization to see who is allowed to certify your Employment Certification Form.


Tax on Forgiveness


Amounts forgiven under the PSLF Program are not considered income by the Internal Revenue Service. Therefore , you will not have to pay federal income tax on the amount of your Direct Loans that is forgiven.


How to Submit PSLF Forms


Send the completed form, with your employer s certification, to FedLoan Servicing, the U.S. Department of Education s federal loan servicer for the PSLF Program. You may mail the form to this address :


U.S. Department of Education FedLoan Servicing P.O. Box 69184 Harrisburg, PA 17106 - 9184


You may also fax your PSLF application or Employment Certification Form to 717 - 720 - 1628.


If FedLoan Servicing is already your servicer , you may upload your PSLF application or Employment Certification Form on their website.


Contact for PSLF Questions


If you have more questions , review the PSLF FAQ page.


If your questions aren't covered on that page , contact FedLoan Servicing at 1 - 855 - 265 - 4038.


Master Promissory Note (MPN) for Graduate/Professional Students


The MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan .Graduate / professional students may be eligible for both Direct Unsubsidized Loans and Direct PLUS Loans, which have different MPNs. You may receive more than one loan under an MPN over a period of up to 10 years to pay for your educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so. Your school will tell you which loans, if any, you are eligible to receive.


MPN for Subsidized and Unsubsidized Loans


Use this MPN for Direct Unsubsidized Loans available to eligible graduate / professional students. You may also need to complete an MPN for Direct PLUS Loans.


Download PDF


Preview Read Only


MPN for Direct PLUS Loans


Use this MPN for Direct PLUS Loans available to eligible graduate / professional students. You may also need to complete an MPN for Direct Unsubsidized Loans.


30 Minutes


Verified username and password FSA ID School Name Permanent/Mailing Address Contact Information Employer Information Reference Information


Return to the MPN Selection Page


If you want to keep receiving your federal student aid, make sure you stay eligible.


You ll need to continue to meet the basic eligibility criteria, make satisfactory academic progress, and fill out the FAFSA form every year.


Once you ve filled out your Free Application for Federal Student Aid FAFSA form and received your grant, loan, or work - study funds to help you pay for college or career school , make sure you stay eligible throughout the academic year and in subsequent years.


Continue to Meet Basic Eligibility Criteria


Remember , the basic eligibility criteria that allow you to get federal student aid continue to apply throughout the time you re receiving aid not just when you first fill out the FAFSA form and are awarded aid.


Make Satisfactory Academic Progress


You need to make satisfactory academic progress in order to continue receiving federal student aid. In other words, you have to make good enough grades, and complete enough classes (credits, hours, etc. ), to keep moving toward successfully completing your degree or certificate in a time period that s acceptable to your school.


Each school has a satisfactory academic progress policy for financial aid purposes ; to see your school s, you can check your school s website or ask someone at the financial aid office. Your school s policy will tell you what grade - point average or equivalent standard you need to maintain ; how quickly you need to be moving toward graduation for instance, how many credits you should have successfully completed by the end of each year ; how an incomplete class, withdrawal, repeated class, change of major, or transfer of credits from another school affects your satisfactory academic progress ; how often your school will evaluate your progress ; what will happen if you fail to make satisfactory academic progress when your school evaluates you ; whether you are allowed to appeal your school s decision that you haven t made satisfactory academic progress reasons for appeal usually include the death of a member of your family, your illness or injury, or other special circumstances ; and how you can regain eligibility for federal student aid.


Fill Out the FAFSA Form Each Year


When you fill out the FAFSA form , you are applying for aid for a specific year. In order to receive aid the next year , you ll need to submit that next year s FAFSA form. Luckily , the FAFSA website makes it easy for you by allowing you to submit a Renewal FAFSA form that remembers certain information you reported the year before and places it in your new FAFSA form.


Receiving Financial Aid


Your college or career school not the U.S. Department of Education will distribute your federal student aid.


You ve told your school which financial aid you want to accept. Learn about when and how you will receive the aid.


When You ll Receive Your Financial Aid


The type of aid you accepted affects when you ll get your aid.


Grants and Student Loans


Generally , your school will give you your grant or loan money in at least two payments called disbursements. In most cases , your school must give you your grant or loan money at least once per term semester, trimester, or quarter. Schools that don t use traditional terms such as semesters or quarters usually must give you your grant or loan money at least twice for instance, at the beginning and midpoint of your academic year or program.


Note: If you re a parent taking out a Direct PLUS Loan to help pay for your child s education expenses , your loan funds will be disbursed according to the same type of schedule.


The following may apply if you haven t taken out a federal student loan before : If you re a first - year undergraduate student and a first - time borrower , you may have to wait 30 days after the first day of your enrollment period semester, trimester, etc. before your school is allowed to give you your loan money. Check with your school to see whether this rule applies. If you re a first - time borrower of a Direct Subsidized Loan or a Direct Unsubsidized Loan , you must complete entrance counseling before your school can give you your loan money. If you are a graduate or professional student taking out a Direct PLUS Loan for the first time , you must complete entrance counseling before you receive your first loan disbursement. Note: Counseling isn t required if you re a parent taking out a Direct PLUS Loan to help pay for your child s education.


Work-Study


If you re going to have a work - study job , you ll be paid at least once a month.


If you don t receive the type or amount of financial aid you expected , contact your school. The financial aid office can explain how your aid was determined.


How You ll Receive Your Financial Aid


How you ll get your aid depends on the type of aid you accepted.


Typically , the school first applies your grant or loan money toward your tuition, fees, and if you live on campus room and board. Any money left over is paid to you directly for other education expenses.


If you get your loan money , but then you realize that you don t need the money after all , you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged.


Your school must pay you directly unless you request that the school send your payments directly to your bank account or use the money to pay for education - related charges e.g., tuition, fees, room and board on your student account.


Direct PLUS Loans for Parents


In most cases , your child s school will give you your loan money by crediting it to your child s school account to pay tuition, fees, room, board, and other authorized charges. If there is money left over , the school will pay it to you. In some cases , with your permission , the school may give the leftover money to your child.


If you take out a loan as a student or parent , your school or your child s school will notify you in writing each time they give you any part of your loan money. At the same time , they ll provide information about how to cancel all or part of your loan if you find you no longer need the full amount. You will also receive a notice from your loan servicer confirming that you received the loan money.


Paying for Textbooks and Other Course Materials If You Haven t Received Your Financial Aid


Schools that participate in federal student aid programs must provide a way for you to obtain your books and supplies by the seventh day of the term if you are eligible for disbursement i.e., the payment of your financial aid 10 days before the term begins and you will have a credit balance i.e., money left over after your financial aid is applied to your tuition, fees, and other school charges as applicable.


Your school can tell you if the above criteria apply to you.


How Your School Gets Your Financial Aid Funds to You for Course Materials


You should ask your financial aid office about this because it varies from school to school. For example , if the school offers a bookstore voucher or other means for students to receive their books and supplies through the school or its bookstore , you could obtain your materials that way.


When your school gives you financial aid , sometimes money is left over after your aid is applied to your tuition, fees, and other school charges. This remaining amount is called a credit balance. If you have a credit balance , your school must pay this amount to you directly within 14 days unless you authorize the school to keep the money to pay for future institutional charges.


The amount the school is required to provide is either the amount of your credit balance or the amount needed for books and supplies as determined by your school, whichever is less. Your school can tell you if this applies to you.


Even if the school s preferred arrangement is to provide vouchers or other means for you to get your course materials through the school or its bookstore , the school must provide you the opportunity to opt out, receive a check from the school, and obtain the books and supplies on your own unless one of the following exceptions applies : The school can demonstrate a compelling health and safety reason for obtaining the materials through the institution or its supplier. The school can demonstrate that the materials are not currently available elsewhere or accessible to students via other means.


Saving Money on Textbooks and Course Materials


Depending on what materials are available at your school and for your courses , you may have several lower - cost options to obtain your books : If your course uses a hard - copy textbook , consider buying a used copy or renting your textbook from a bookstore or online. If you purchase your textbook , consider reselling that textbook, if allowed, when you are done with the course. Even with new textbooks , you may be able to save money by shopping around. Some schools use open - access texts and online content to offer students further savings over hard - copy textbooks. Open - access texts are available for free. If your course uses paid online content , your school may have negotiated a deal with the publisher that will allow you online access at a fraction of the cost you would pay for a physical book. The paid online content may also come with study tools and other content in addition to the textbook.


Your options for course material formats will vary by school, instructor, and course, so learning what your options are and knowing about any cost - reduction initiatives your school may have can result in significant savings.


A Note About ISBNs


Your school must publish the International Standard Book Number ISBN for each course text in the online course schedule entry if the ISBN is available. The ISBN identifies the specific edition of the book that s required for your class and helps you be sure you re obtaining the right book when you search for it. If an ISBN is unavailable , the school should provide the author, title, publisher, and copyright date.


Estimate Your Aid (FAFSA4caster)


If you would like to estimate your federal student aid, but aren t yet ready to apply for aid , try FAFSA4caster.


FAFSA4caster is a simple eligibility estimator tool that can help you plan when it comes to paying for college.


FAFSA4caster gives you a free estimate of your eligibility for federal student aid. You must use the Free Application for Federal Student Aid FAFSA form to apply for aid once you ve decided to apply for admission and attend college. Understand Your Options with FAFSA4caster Types of Questions Asked in FAFSA4caster Information Provided by FAFSA4caster


FAFSA4caster is not an application for aid ; it s a planning tool. Complete the FAFSA form when you are ready to apply for aid.


Understand Your Options with FAFSA4caster


FAFSA4caster is a helpful tool for anyone who is not yet ready to submit a FAFSA form it s recommended for high school juniors, and even as early as middle school. Parents of younger students can use FAFSA4caster to receive early estimates, create scenarios based on future earnings, and then establish college funding strategies. Adult students also can use FAFSA4caster to get an idea of how much and what types of federal aid they might receive.


Types of Questions Asked in FAFSA4caster


In FAFSA4caster , you answer financial and other questions that are used to estimate your federal student aid eligibility. You may be able to answer most of the questions easily , but some of the questions may ask you to reference your personal records for instance, your federal tax information or your bank statements. For the most accurate estimate , be sure to answer all the questions on FAFSA4caster, even if you have to estimate or guess.


You can print each estimate once FAFSA4caster completes the calculation.


Information Provided by FAFSA4caster


When you have completed all the relevant questions in the FAFSA4caster , the screen displays a worksheet to help you determine the net cost of attending college. Here s what you can expect to see on the worksheet : You can enter the school s cost of attendance. There is a link to the College Scorecard in case you need to look up the cost. Next , you can see a number of sources of college funding. FAFSA4caster estimates your Federal Pell Grant amount if any. Then , you can fill in the amounts of state and college grants, and any scholarships, that you expect or hope to get. Lastly , you can see the estimates for your Federal Work - Study amount based on the average nationally, and maximum Direct Subsidized Loan and Direct Unsubsidized Loan eligibility.


Once you select " Calculate , " FAFSA4caster summarizes the cost, the total aid entered, and the difference the net cost of attending college. Your estimated Expected Family Contribution EFC also appears. You can compare schools by changing the cost of attendance, deleting state aid if you will be an out - of - state student at a particular school, or modifying the amount of aid available from the school, among other comparisons.


You may be eligible to have all or a portion of your Federal Perkins Loan canceled (based on your employment or volunteer service) or discharged (under certain conditions).


Learn more to see whether you are eligible and how to apply.


Federal Perkins Loan cancellation is based on eligible employment or eligible volunteer service and the length of time that you were in such a position. Discharge of your Perkins Loan may occur under certain circumstances.


Perkins Loan Teacher Cancellation


You qualify for cancellation of up to 100 percent of a Federal Perkins Loan if you have served full - time in a public or nonprofit elementary or secondary school system as a teacher in a school serving students from low - income families ; special education teacher , including teachers of infants, toddlers, children, or youth with disabilities ; or teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.


Eligibility for teacher cancellation is based on the duties presented in an official position description, not on the position title. To receive a cancellation , you must be directly employed by the school system. There is no provision for canceling Federal Perkins Loans for teaching in postsecondary schools.


Note that you also qualify for deferment while you re performing teaching service that qualifies for cancellation. Contact your college or your college s Perkins Loan servicer for information on applying for deferment.


A teacher is someone including for example, a school librarian or guidance counselor who provides elementary or secondary school students with direct services directly related to classroom teaching.


You do not need to be certified or licensed to receive cancellation benefits. However , your employing school must consider you to be a full - time professional for the purposes of salary, tenure, retirement benefits, etc. If you are a supervisor, administrator, researcher, or curriculum specialist , you are not considered a teacher unless you primarily provide direct and personal educational services to students.


How long must I teach?


For each full academic year or its equivalent of full - time teaching service , you are eligible to have a portion of your loan canceled. There is no requirement that you must teach a given number of hours a day to qualify as a full - time teacher ; the employing school is responsible for making that decision.


An academic year or its equivalent for cancellation purposes is defined as one complete school year or two half - years that are from different school years. The two half - years must be complete and consecutive, excluding summer sessions, and must generally fall within a 12-month period.


Teaching Part-time at Multiple Schools


You can have your loan canceled if you are simultaneously teaching part - time in two or more schools if an official at one of the schools where you taught certifies that you taught full - time for a full academic year.


Teaching at a Private School


Your loan can be canceled for services performed in a private school if the private school has established its nonprofit status with the Internal Revenue Service, and if the school is providing elementary and/or secondary education according to state law.


Teaching at a Preschool or Prekindergarten Program


Your loan can be canceled only if the state considers such a program to be a part of its elementary education program. A low - income - school - directory designation that includes prekindergarten or kindergarten does not suffice for a state determination of program eligibility.


Teaching at Low-income Schools


A cancellation based on teaching in a school serving students from low - income families will be granted only if you taught in an eligible school as determined by the state education agency. To be considered a low - income school , the school must be in a school district that qualified for federal Title I funds in the year for which the cancellation is sought. Also , more than 30 percent of the school s enrollment must be made up of children in the Title I program.


Each year , the U.S. Department of Education ED publishes a list of low - income elementary and secondary schools. To find out if a school is classified as a low - income school, check our online database for the year you have been employed as a teacher. Questions about the inclusion or omission of a particular school must be directed to the state education agency contact in the state where the school is located and not to ED.


All elementary and secondary schools operated by the Bureau of Indian Education BIE or operated on Indian reservations by Indian tribal groups under contract with BIE qualify as schools serving low - income students.


NOTE: If you have had a portion of your loan canceled for teaching at a low - income elementary or secondary school in one year , you can continue to have portions of your loan canceled for teaching at that school even if it is not listed as a low - income school in later years. Under certain circumstances , the institution that holds your Perkins Loan may permit retroactive cancellation if you can demonstrate that you qualified for cancellation in a prior year. However , the institution may not refund payments made during such a retroactive period.


Teaching at an Educational Service Agency


If you teach at an educational service agency , your teaching service may qualify for cancellation if the period of qualifying service includes Aug. 14 , 2008, or begins on or after that date.


Teaching Special Education


You must have an official at the public or other nonprofit elementary or secondary school certify that you are a full - time special education teacher of infants, toddlers, children, or youth with disabilities either on the deferment / cancellation form or on an official letter from the school bearing the school's seal or letterhead.


If you provide one of the services listed below , you qualify as a teacher only if you are licensed, certified, or registered by the appropriate state education agency for that area in which you are providing related special educational services, and the services you provide are part of the educational curriculum for handicapped children.


The services are speech and language pathology and audiology , physical therapy, occupational therapy, psychological and counseling services , and recreational therapy.


Teaching in a Designated Subject Shortage Area


This cancellation is based on full - time teaching if there is a shortage of teachers in your subject area. Each year the state education agency determines any subject shortage areas in the elementary and secondary schools within the state. Check with your local school system or state education agency to find out if your subject - matter area has been so designated. If you teach full - time in science, mathematics, foreign language, or bilingual education, you qualify for cancellation even if the state has not designated one of these subject areas as a shortage area. For a borrower to be considered as teaching in a field of expertise , the majority of classes taught must be in that field of expertise.


Nationwide Listing of Teacher Shortage Areas


You may download the list of teacher shortage areas : PDF : Teacher Shortage Areas Nationwide Listing Word file : Teacher Shortage Areas Nationwide Listing


What amount can be canceled for teaching service?


If you are eligible for cancellation under any of the categories listed above , up to 100 percent of the loan may be canceled for teaching service, in the following increments : 15 percent canceled per year for the first and second years of service 20 percent canceled for the third and fourth years 30 percent canceled for the fifth year


Each amount canceled per year includes the interest that accrued during the year.


Other Employment or Volunteer Service That Qualifies for Perkins Loan Cancellation


In addition to teaching , the following employment or service may qualify you for a full or partial Perkins Loan cancellation depending on the type of loan you have and the date of the loan : Early childhood education provider Employee at a child or family services agency Faculty member at a tribal college or university Firefighter Law enforcement officer Librarian with master s degree at Title I school Military service Nurse or medical technician Professional provider of early intervention disability services Public defender Speech pathologist with master s degree at Title I school Volunteer service AmeriCorps VISTA or Peace Corps


Find out how much of your loan can be canceled.


Perkins Loan Discharge


Under certain conditions , your Perkins Loan may be discharged. When your loan is discharged , it means that you are no longer obligated to pay back your loan. Conditions that may lead to discharge include the following : Bankruptcy Death School closure Service-connected disability (veterans) Spouse of a victim of the events of 9/11 Total and permanent disability


Perkins Loan Cancellation and Discharge Summary Charts


Cancellation Chart


Unless otherwise noted in the chart , the cancellation rate per completed academic year of full - time teaching or for each year of otherwise qualifying full - time service is 15 percent of the original principal loan amount for each of the first and second years ; 20 percent of the original principal loan amount for each of the third and fourth years ; and 30 percent of the original principal loan amount for the fifth year.


Each amount includes the interest that accrued during each year of service.


Note: As of Oct. 7 , 1998 , all Perkins Loan borrowers are eligible for all cancellation benefits regardless of when the loan was made or the terms of the borrower's promissory note. However , this benefit is not retroactive to services performed before Oct. 7 , 1998.


Discharge Chart


If your loan is discharged , you will be released from your obligation to repay the loan.


Applying for Cancellation or Discharge


Application for cancellation or discharge of a Perkins Loan must be made to the school that made the loan or to the school s Perkins Loan servicer. The school or its servicer can provide forms and instructions specific to your type of cancellation or discharge.


Consolidating your federal education loans can simplify your payments, but it also can result in the loss of some benefits.


Learn about consolidation so you can weigh the pros and cons and decide whether a Direct Consolidation Loan is right for you.


A Direct Consolidation Loan allows you to consolidate combine multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs.


There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan.


You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. These companies have no affiliation with the U.S. Department of Education ED or ED s consolidation loan servicers. There s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The application process is easy and free.


Should I consolidate my loans?


The answer depends on your individual circumstances.


Pros If you currently have federal student loans that are with different loan servicers , consolidation can greatly simplify loan repayment by giving you a single loan with just one monthly bill. Consolidation can lower your monthly payment by giving you a longer period of time up to 30 years to repay your loans. If you consolidate loans other than Direct Loans , consolidation may give you access to additional income - driven repayment plan options and Public Service Loan Forgiveness PSLF. Direct Loans are from the William D. Ford Federal Direct Loan Program. You ll be able to switch any variable - rate loans you have to a fixed interest rate.


Cons Because consolidation usually increases the period of time you have to repay your loans , you will likely make more payments and pay more in interest than would be the case if you didn t consolidate. When you consolidate your loans , any outstanding interest on the loans that you consolidate becomes part of the original principal balance on your consolidation loan, which means that interest may accrue on a higher principal balance than might have been the case if you had not consolidated. Consolidation may also cause you to lose certain borrower benefits such as interest rate discounts, principal rebates, or some loan cancellation benefits that are associated with your current loans. If you re paying your current loans under an income - driven repayment plan , or if you ve made qualifying payments toward Public Service Loan Forgiveness , consolidating your current loans will cause you to lose credit for any payments made toward income - driven repayment plan forgiveness or PSLF.


If consolidation would cause you to lose the benefits associated with some of your current loans and you are working toward earning those benefits , you should not include those loans in your new Direct Consolidation Loan. When you apply for a Direct Consolidation Loan , you don t have to consolidate all of your eligible loans.


For example , if you have both Direct Loans and other types of federal student loans, and you have been making payments toward PSLF on your Direct Loans , you should not consolidate your Direct Loans along with your other loans. Similarly , if you have Federal Perkins Loans and you are employed in an occupation that would qualify you for Perkins Loan cancellation benefits , you should not include your Perkins Loans when you consolidate. Leaving out your Direct Loans or Perkins Loans will preserve the benefits on those loans.


If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation , you might want to consider deferment or forbearance as options for short - term payment relief, or consider switching to an income - driven repayment plan for longer - term payment relief.


Once your loans are combined into a Direct Consolidation Loan , they cannot be removed. The loans that were consolidated are paid off and no longer exist.


What types of loans can be consolidated?


Most federal student loans, including the following, are eligible for consolidation : Subsidized Federal Stafford Loans Unsubsidized and Nonsubsidized Federal Stafford Loans PLUS loans from the Federal Family Education Loan FFEL Program Supplemental Loans for Students Federal Perkins Loans Nursing Student Loans Nurse Faculty Loans Health Education Assistance Loans Health Professions Student Loans Loans for Disadvantaged Students Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans FFEL Consolidation Loans and Direct Consolidation Loans only under certain conditions Federal Insured Student Loans Guaranteed Student Loans National Direct Student Loans National Defense Student Loans Parent Loans for Undergraduate Students Auxiliary Loans to Assist Students


Private education loans are not eligible for consolidation , but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt including any private education loans determines how long you have to repay your Direct Consolidation Loan.


Direct PLUS Loans received by parents to help pay for a dependent student s education cannot be consolidated together with federal student loans that the student received.


When can I consolidate my loans?


Generally , you are eligible to consolidate after you graduate, leave school, or drop below half - time enrollment.


What are the requirements to consolidate a loan?


Here are some of the eligibility requirements for receiving a Direct Consolidation Loan : The loans you consolidate must be in repayment or in the grace period. Generally , you cannot consolidate an existing consolidation loan unless you include an additional eligible loan in the consolidation. Under certain circumstances , you may reconsolidate an existing FFEL Consolidation Loan without including any additional loans. If you want to consolidate a defaulted loan , you must either make satisfactory repayment arrangements defined as three consecutive monthly payments on the loan before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the Income-Based Repayment Plan, Pay As You Earn Repayment Plan , Revised Pay As You Earn Repayment Plan , or Income-Contingent Repayment Plan. If you want to consolidate a defaulted loan that is being collected through garnishment of your wages, or that is being collected in accordance with a court order after a judgment was obtained against you , you cannot consolidate the loan unless the wage garnishment order has been lifted or the judgment has been vacated.


* You may be able to reconsolidate an existing delinquent or defaulted FFEL Consolidation Loan and repay your new Direct Consolidation Loan under an income - driven repayment plan ; FFEL Consolidation Loan in order to qualify for the PSLF Program ; or FFEL Consolidation Loan to use the no accrual of interest benefit for active duty service members, which states that you re not required to pay the interest that accrues during periods of qualifying active duty military service for up to 60 months on the portion of a Direct Consolidation Loan that repaid a Direct Loan Program or FFEL Program loan first disbursed on or after Oct. 1 , 2008.


What is the interest rate on a consolidation loan?


A Direct Consolidation Loan has a fixed interest rate for the life of the loan. The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one - eighth of one percent. There is no cap on the interest rate of a Direct Consolidation Loan.


When do I begin repayment?


Repayment of a Direct Consolidation Loan will begin within 60 days after the loan is disbursed paid out. Your loan servicer will let you know when the first payment is due.


If any of the loans you want to consolidate are still in the grace period , you have the option of indicating on your Direct Consolidation Loan application that you want the servicer that is processing your application to delay the consolidation of your loans until closer to the grace period end date. If you select this option , you won t have to begin making payments on your new Direct Consolidation Loan until closer to the end of the grace period on your current loans.


Are there different repayment plans?


Borrowers have different needs , so there are several repayment plans including income - driven repayment plans, which base your monthly payment amount on your income and family size. You ll select a repayment plan when you apply for a Direct Consolidation Loan. Learn about repayment plans.


How do I apply for a Direct Consolidation Loan?


Apply for a Direct Consolidation Loan. You can complete and submit the application online , or you can download and print a paper application for submission by U.S. mail.


After you submit your application electronically or by mailing a paper application , the consolidation servicer you selected will complete the actions required to consolidate your eligible loans. The consolidation servicer will be your point of contact for any questions you may have related to your consolidation application.


Unless the loans you want to consolidate are in a deferment, forbearance, or grace period , it s important for you to continue making payments on those loans until your consolidation servicer tells you that they have been paid off by your new Direct Consolidation Loan.


Whom do I contact if I have questions about consolidation?


This depends on where you are in the consolidation process.


To ask questions about consolidating your loans before you apply for a Direct Consolidation Loan , contact the Student Loan Support Center at 1 - 800 - 557 - 7394.


To request technical assistance while you are logged in and completing the Federal Direct Consolidation Loan Application and Promissory Note online , either complete and submit the feedback form or contact the Student Loan Support Center at 1 - 800 - 557 - 7394.


To ask questions after you have submitted your Federal Direct Consolidation Loan Application and Promissory Note , contact the servicer for your new Direct Consolidation Loan. If you submitted your application online , your consolidation servicer s contact information was provided at the end of the online process. If you submitted a paper application by U.S. mail , your consolidation servicer s contact information was available when you downloaded or printed the paper application.


The Extended Repayment Plan allows you to repay your loans over an extended period of time.


Payments are made for up to 25 years.


If you need to make lower monthly payments over a longer period of time than under plans such as the Standard Repayment Plan , then the Extended Repayment Plan may be right for you.


The following loans from the William D. Ford Federal Direct Loan Direct Loan Program and the Federal Family Education Loan FFEL Program are eligible for the Extended Repayment Plan : Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans Direct Consolidation Loans Subsidized Federal Stafford Loans Unsubsidized Federal Stafford Loans FFEL PLUS Loans FFEL Consolidation Loans


Eligibility for the Extended Repayment Plan


If you're a Direct Loan borrower , you must have had no outstanding balance on a Direct Loan as of October 7 , 1998, or on the date you obtained a Direct Loan after October 7 , 1998 , and you must have more than $30,000 in outstanding Direct Loans.


If you're a FFEL borrower , to qualify for this plan you must have had no outstanding balance on a FFEL Program loan as of October 7 , 1998, or on the date you obtained a FFEL Program loan after October 7 , 1998 , and you must have more than $30,000 in outstanding FFEL Program loans.


For example , if you have $35,000 in outstanding FFEL Program loans and $10,000 in outstanding Direct Loans , you can choose the Extended Repayment Plan for your FFEL Program loans, but not for your Direct Loans.


Under this plan , your monthly payments are a fixed or graduated amount , made for up to 25 years , and generally lower than payments made under the Standard and Graduated Repayment Plans.


Using Loan Simulator to Estimate Your Eligibility and Payment Amount Under the Extended Repayment Plan


Your loan servicer, the company that handles the billing and other services on your federal student loan, can help you choose a loan repayment plan that s best for you. Before you contact your loan servicer to discuss repayment plans , you can use our Loan Simulator to get an early look at what plans you may be eligible for and to receive a comparison of estimated monthly payment amounts for all federal student loan repayment plans. This comparison is important because the Extended Plan may not provide you with the lowest payment amount based on your individual circumstances. You may find that your payment will be lower under another repayment plan.


You must meet certain requirements to qualify for federal student aid (grants, work-study, and loans).


Let s go over the basic eligibility criteria.


Basic Eligibility Criteria


Our basic eligibility requirements are that you must demonstrate financial need for most programs ; be a U.S. citizen or an eligible noncitizen ; have a valid Social Security number with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau ; be registered with Selective Service , if you re a male you must register between the ages of 18 and 25 ; be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program ; be enrolled at least half - time to be eligible for Direct Loan Program funds ; maintain satisfactory academic progress in college or career school ; sign the certification statement on the Free Application for Federal Student Aid FAFSA form stating that you are not in default on a federal student loan , you do not owe money on a federal student grant , and you will use federal student aid only for educational purposes ; and show you re qualified to obtain a college or career school education by having a high school diploma or a recognized equivalent such as a General Educational Development GED certificate ; completing a high school education in a homeschool setting approved under state law or if state law does not require a homeschooled student to obtain a completion credential completing a high school education in a homeschool setting that qualifies as an exemption from compulsory attendance requirements under state law; or enrolling in an eligible career pathway program and meeting one of the " ability - to - benefit " alternatives described below.


Additional eligibility requirements can apply in certain situations including for non - U.S. citizens, students with criminal convictions, and students with intellectual disabilities.


Some federal student aid programs have their own eligibility criteria in addition to the general requirements listed above. Check with your college s financial aid office if you have questions about a particular program.


Registering for Selective Service


Most male students must be registered with Selective Service to receive federal student aid. You must register if you are a male and are not currently on active duty in the U.S. armed forces. You can call Selective Service toll - free at 1 - 888 - 655 - 1825 for general information about registering, or register online at sss.gov or while completing the FAFSA form.


Note: If you are a citizen of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau , you are exempt from registering.


Ability-to-Benefit Alternatives


If you were enrolled in college or career school prior to July 1 , 2012, or if you are currently enrolled in an eligible career pathway program * , you may show you re qualified to obtain a higher education by passing an approved ability - to - benefit test * if you don t have a diploma or GED, a college can administer a test to determine whether you can benefit from the education offered at that school or completing six credit hours or equivalent course work toward a degree or certificate you may not receive aid while earning the six credit hours.


* For more information about these criteria , talk to the financial aid office at your school. Your financial aid counselor can tell you whether your school offers an eligible career pathway program and can advise you about any ability - to - benefit tests the school uses.


Federal student loans for college or career school are an investment in your future.


You must repay your loan, so be sure you understand your options and responsibilities.


If you apply for financial aid , you may be offered loans as part of your school s financial aid offer. A loan is money you borrow and must pay back with interest.


If you decide to take out a loan , make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Learn more about the differences between federal and private student loans.


What types of federal student loans are available?


The U.S. Department of Education s federal student loan program is the William D. Ford Federal Direct Loan Direct Loan Program. Under this program , the U.S. Department of Education is your lender. There are four types of Direct Loans available : Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students , but eligibility is not based on financial need. Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need , but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify. Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.


How much money can I borrow in federal student loans?


It depends on whether you re an undergraduate student, a graduate or professional student, or a parent. If you are an undergraduate student , the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status. If you are a graduate or professional student , you can borrow up to $20,500 each year in Direct Unsubsidized Loans. Direct PLUS Loans can also be used for the remainder of your college costs, as determined by your school, not covered by other financial aid. If you are a parent of a dependent undergraduate student , you can receive a Direct PLUS Loan for the remainder of your child s college costs, as determined by his or her school, not covered by other financial aid.


Remember , you can borrow less than your school offers and can request more loan funds later if you need to. You should borrow only what you need.


Why should I take out federal student loans?


Federal student loans are an investment in your future. You should not be afraid to take out federal student loans , but you should be smart about it.


Federal student loans offer many benefits compared to other options you may consider when paying for college : The interest rate on federal student loans is fixed and usually lower than that on private loans and much lower than that on a credit card! You don t need a credit check or a cosigner to get most federal student loans. You don t have to begin repaying your federal student loans until after you leave college or drop below half - time. If you demonstrate financial need , the government pays the interest on some loan types while you are in school and during some periods after school. Federal student loans offer flexible repayment plans and options to postpone your loan payments if you re having trouble making payments. If you work in certain jobs , you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions.


What should I consider when taking out federal student loans?


Before you take out a loan , it s important to understand that a loan is a legal obligation that makes you responsible for repaying the amount you borrow with interest. Even though you don t have to begin repaying your federal student loans right away , you shouldn t wait to understand your responsibilities as a borrower. Get the scoop: Watch this video about responsible borrowing or browse the tips below it.


Be a responsible borrower. Keep track of how much you re borrowing. Think about how the amount of your loans will affect your future finances, and how much you can afford to repay. Your student loan payments should be only a small percentage of your salary after you graduate , so it s important not to borrow more than you need for your school - related expenses. Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can also use the U.S. Department of Labor's Occupational Outlook Handbook or career search tool to research careers and salaries. Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note , you are agreeing to repay the loan according to the terms of the note even if you don t complete your education, can t get a job after you complete the program, or you didn t like the education you received. Make payments on time. You are required to make payments on time even if you don t receive a bill, repayment notice, or a reminder. You must pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time. Keep in touch with your loan servicer. Notify your loan servicer when you graduate ; withdraw from school ; drop below half - time status ; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing.


How do I get a federal student loan?


To apply for a federal student loan , you must first complete and submit a Free Application for Federal Student Aid FAFSA form. Based on the results of your FAFSA form , your college or career school will send you a financial aid offer, which may include federal student loans. Your school will tell you how to accept all or a part of the loan.


Before you receive your loan funds , you will be required to complete entrance counseling , a tool to ensure you understand your obligation to repay the loan ; and sign a Master Promissory Note, agreeing to the terms of the loan.


Contact the financial aid office at the school you are planning to attend for details regarding the process at your school.


Is the U.S. Department of Education responsible for Health Education Assistance Loan (HEAL) Program loans?


Yes. On July 1 , 2014 , the HEAL Program was transferred from the U.S. Department of Health and Human Services HHS to the U.S. Department of Education ED. However , it is no longer possible to obtain a new HEAL Program loan. The making of new HEAL Program loans was discontinued on Sept. 30 , 1998.


Borrowers who have HEAL Program loans and members of the community may obtain more information as outlined below. If you have HEAL Program loans and are not in default on those loans , contact your loan servicer for help with account - related questions. Use the contact information your loan servicer provided to you. If you have HEAL Program loans and are in default on those loans , contact the Debt Collection Center for help with account - related questions. If you have a general HEAL Program question not a loan account question , contact ED s HEAL Program Team at 1 - 844 - 509 - 8957 or HEAL@ed.gov.


For mail sent via U.S. Postal Service: HHS Program Support Center Accounting Services , Debt Collection Center Mailstop 10230B 7700 Wisconsin Avenue , Suite 8 - 8110D Bethesda, MD 20857


For mail sent via UPS or FedEx : HHS Program Support Center Accounting Services, Debt Collection Center Mailstop Seventh Floor 7700 Wisconsin Avenue, Suite 8 - 8110D Bethesda, MD 20814Phone : 301 - 492 - 4664


What is the Federal Perkins Loan Program?


The Federal Perkins Loan Program provided money for college or career school for students with financial need. The authority for schools to make new Federal Perkins Loans ended on Sept. 30 , 2017.


What is a Direct PLUS Loan Application for Parents?


As a parent borrower , the Direct PLUS Loan Application also allows you to :


Designate whether the school pays any credit balance to the student or to you. Request a deferment while the student is in school Request an additional deferment for 6 months after the student ceases to be enrolled at least half time.


Complete the Financial Aid Process


You've accomplished the most important task submitting the Free Application for Federal Student Aid FAFSA form. Find out what you need to do next.


Get Informed


Find out how aid is calculated.


Compare Aid Offers


Review schools' financial aid packages.


Get Your Money


Your college or career school not the U.S. Department of Education will distribute your financial aid.


Accept aid from your chosen school.


Sign Loan Agreement


Complete a Master Promissory Note MPN.


Before your first loan or TEACH Grant , complete counseling.


Find out when your school will pay out your aid and the period each payment covers.


Learn how to pay for course materials if you don t get your financial aid as soon as classes start.


Learn how you'll get your aid it all depends on the type of aid you receive.


I Need to Lower or Suspend My Student Loan Payments


We ll help you stay on the path to successful repayment of your federal student loan.


Whether you are just beginning to repay your student loan s or have been in repayment for a while , sometimes you might have trouble affording your payment amount. Fortunately , there are solutions.


Automatic Suspension of Monthly Payments as a Result of the COVID-19 National Emergency


Apply for an Income-Driven Repayment Plan


An income - driven repayment IDR plan can make your payments more affordable because they are based on your income. Under an IDR plan , payments may be as low as $0 per month. You can estimate your monthly payments using Loan Simulator.


After you apply , your federal loan servicer will notify you regarding your eligibility and, if you qualify, the payment amount.


Apply for an IDR Plan


Recertify or Change Your Income-Driven Repayment Plan


Recertify Your Income-Driven Repayment Plan


Enrollment in an income - driven repayment plan is good for one year. Before the year is over , you need to recertify your income and family size to stay on the plan. Your federal loan servicer will notify you when it is time to recertify. If you can t afford your current income - driven payments because you ve had a drop in income , you can recertify early to have your new income taken into account right away.


It s important to recertify every year! If you don t recertify on time , you ll be removed from the income - driven repayment plan and your monthly amount due will very likely increase.


Change Your Income-Driven Repayment Plan


If you ve had an increase in family size or a decrease in income , you can apply to have your current IDR plan recalculated. You don t have to wait until your annual recertification is due.


The same is true if you want to switch from one IDR plan to another. A different repayment plan may offer different benefits depending on your situation. You can apply to switch at any time you don t have to wait until your annual recertification is due.


Recertify or Change Your IDR Plan


A deferment or forbearance allows you to temporarily stop making your federal student loan payments or temporarily reduce your monthly payment amount. This may help you avoid default.


Note: Interest still accrues during deferment or forbearance. It s important you understand whether you would be responsible for paying the accrued interest during this period and how that would impact your federal student loan. Deferment and forbearance also impact potential loan forgiveness options.


Learn More About Deferment and Forbearance


Choose Loan Counseling Type


Counseling Type


Financial Awareness Counseling


Entrance Counseling is required before you can receive your first Direct Subsidized Loan, or Direct Unsubsidized Loan as an undergraduate, or your first Direct PLUS Loan as a graduate / professional student.


Financial Awareness Counseling provides tools and information to help you understand your financial aid and help you manage your finances.


Complete this counseling any time.


PLUS Credit Counseling


PLUS Credit Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documented to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history . PLUS Credit Counseling can be completed voluntarily at any time. If PLUS Credit Counseling is completed voluntarily and you are determined to have an adverse credit history by the U.S. Department of Education within 30 days of PLUS Credit Counseling completion , your PLUS Credit Counseling requirement will be considered to be fulfilled.


Exit Counseling is required when you graduate, leave school, or drop below half - time enrollment. Exit counseling provides important information to prepare you to repay your federal student loan.


At the end , you'll need to provide the name, address, e - mail address, and telephone number for your closest living relative, two references who live in the U.S., and current or expected employer if known.


Were you looking for TEACH Grant Counseling?


Complete TEACH Grant Initial and Subsequent Counseling.


Complete a TEACH Grant Agreement to Serve.


Complete TEACH Grant Exit Counseling.


The Standard Repayment Plan is the basic repayment plan for loans from the William D. Ford Federal Direct Loan (Direct Loan) Program and Federal Family Education Loan (FFEL) Program.


Payments are fixed and made for up to 10 years between 10 and 30 years for consolidation loans.


This repayment plan saves you money over time because your monthly payments may be slightly higher than payments made under other plans, but you ll pay off your loan in the shortest time. For this reason , you will pay the least amount of interest over the life of your loan.


When it comes time to repay your loans , you have the option to choose a repayment plan. If you don t choose a different repayment plan , your loan servicer, the company that handles the billing and other services on your federal education loan, will place you on the Standard Repayment Plan.


The following loans from the Direct Loan Program and the FFEL Program are eligible for the Standard Repayment Plan : Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans Direct Consolidation Loans Subsidized Federal Stafford Loans Unsubsidized Federal Stafford Loans FFEL PLUS Loans


FFEL Consolidation Loans


Note that no new loans have been made under the FFEL Program since July 1 , 2010.


Under this plan , your monthly payments are a fixed amount of at least $50 each month and made for up to 10 years for all loan types except Direct Consolidation Loans and FFEL Consolidation Loans.


Under this plan , your monthly payments are a fixed amount of at least $50 each month and made for a period of between 10 and 30 years for Direct Consolidation Loans and FFEL Consolidation Loans.


If you have a Direct Consolidation Loan or FFEL Consolidation Loan , the length of your repayment period will depend on the amount of your total education loan indebtedness. This total education loan indebtedness includes the amount of your consolidation loan and your other student loan debt. Other student loan debt includes any federal student loans that are not included in the consolidation loan, as well as private education loans that are not eligible for consolidation.


The maximum amount of other student loan debt that may be considered in determining your repayment period may not exceed the loan amount you are consolidating.


The chart below shows the maximum repayment period for a Direct Consolidation Loan or FFEL Consolidation Loan under the Standard Repayment Plan depending on total education loan indebtedness.


Using Loan Simulator to Estimate Your Eligibility and Payment Amount Under the Standard Repayment Plan


Your loan servicer can help you choose a loan repayment plan that s best for you. Before you contact your loan servicer to discuss repayment plans , use our Loan Simulator to get an early look at what repayment plans you may be eligible for and to receive a comparison of estimated monthly payment amounts for all federal student loan repayment plans. This comparison is important because the Standard Plan may not provide you with the lowest payment amount based on your individual circumstances. You may find that your payment will be lower under another repayment plan.


Make a Student Loan Payment


It s simple to pay toward your student loan at any time. Get started by working with your federal loan servicer.


Where to Send Payments


Your student loan servicer handles all billing regarding your student loan. Your servicer can work with you if you need help to make a payment.


Make a Payment to Great Lakes and Nelnet


We are now accepting payments for federally - owned student loans serviced by Great Lakes or Nelnet! * Visit your account dashboard to find out.


Make a Payment to Great Lakes or Nelnet


* If we aren t able to accept your payment due to your account status , or if you prefer to pay on your servicer s website , log in to your Great Lakes or Nelnet account.


Make a Payment to Other Loan Servicers


Find Your Loan Servicer s Contact Info


Never miss a payment. Sign up for automatic debit through your federal loan servicer to have your payments automatically taken from your bank account.


Bonus! If you have Direct Loans , get a 0.25% interest rate deduction while you participate in automatic debit!


If you default on your federal student loan, the loan may be placed with a collection agency, which will then contact you to obtain payment.


If you default on your federal student loan , the entire balance of the loan principal and interest becomes immediately due. This is called acceleration. Once your loan is accelerated , you no longer have access to deferment or forbearance options or to a choice of repayment plans. In addition , if you do not make repayment arrangements with the holder of your loan the U.S. Department of Education ED, a guaranty agency, or the school that made the loan and comply with the terms of the repayment arrangement , your loan holder may place your loan with a collection agency.


If your loan is placed with a collection agency , you will be responsible for costs incurred by your loan holder to get payment. These costs amount to 17.92% of your loan amount if your loan is held by ED. Other loan holders may charge a different amount. You should check with them to find out what it is.


The 17.92% is payable in addition to your outstanding principal balance, interest, and fees. For example , if you owe ED $10,000 , you ll owe an additional $1,792 in collection fees once your loan goes to a collection agency, for a total of $11,792 :


17.92% = 0.1792 $10,000 x 0.1792= $1,792 $10,000 + $1,792 = $11,792


The holder of your loan can take other actions to collect as well.


ED currently contracts with several collection agencies to administer many of the collection activities of our accounts. Many guaranty agencies also contract with collection agencies for the same reason. Collection agency employees are trained to comply with the terms of the Fair Debt Collection Practices Act, which govern collection practices by debt collectors.


If your defaulted loan is placed with a private collection agency , you can expect the agency to first offer you the option of entering into a voluntary repayment agreement. If you do not agree to enter into a voluntary repayment agreement, or if you enter into a repayment agreement but don t continue making the payments you agreed to make , the collection agency will then begin the process of garnishing your wages Learn about wage garnishment. If they are unable to garnish your wages for example, because you are self - employed , they may recommend that ED refer your case to the U.S. Department of Justice for legal action. The Department of Justice may then sue you to collect on your defaulted loan.


There are certain things that private collection agencies are prohibited from doing in connection with their efforts to collect on a defaulted loan. Prohibited actions include , but are not limited to , harassing or abusing any person in connection with the collection of a debt ; making false, deceptive, or misleading claims in connection with the collection of a debt; and using unfair or unreasonable means to collect or attempt to collect any debt.


If you believe that a private collection agency has engaged in prohibited practices , you can file a formal complaint.


If your federal student loan is in default , find out what options you have for getting out of default.


How do I know if the information on this page applies to me?


The information on this page mostly applies to borrowers who have defaulted loans that are held by ED.


There are three federal student loan programs administered by ED : the William D. Ford Federal Direct Loan Direct Loan Program the Federal Family Education Loan FFEL Program the Federal Perkins Loan Program


All defaulted Direct Loans are held by ED. Defaulted FFEL Program loans may be held by ED or by a guaranty agency. Defaulted Federal Perkins Loans may be held by a school or by ED. ED s Default Resolution Group, at Federal Student Aid, oversees the collections process for all defaulted loans that are held by ED. Find out how to contact ED s Default Resolution Group.


If you don t know who your loan holder is , you can find out by logging in to My Federal Student Aid.


How will my outstanding debt be collected?


If you fail to make and comply with other arrangements to repay the debt, which could include entering into a loan rehabilitation agreement , ED can use a variety of methods to collect your defaulted federal student loan. Find out more about getting out of default.


The government can collect your debt by withholding money from the following sources of income : your income tax refund and other federal payments your wages


Withholding Money From Your Tax Refund or Other Federal Payments (Treasury Offset)


Federal law related to the collection of debts owed to the government requires ED to request that the U.S. Department of the Treasury withhold money from your federal income tax refunds, Social Security payments including Social Security disability benefits, and other federal payments to be applied toward repayment of your defaulted federal student loan. This withholding is called Treasury offset.


If you have a defaulted FFEL Program loan that is held by a guaranty agency , your state tax refunds may also be withheld and applied toward repayment of your loan. You may also lose your driver's license or other state - issued licenses.


Before the offset begins , a notice of intent to offset will be sent to your last - known address to inform you that the offset is scheduled to begin in 65 days. The notice may only be sent once , and offsets will continue until your debt is paid or the default status is resolved.


You do have the right to request a review of your account to prevent the offset from occurring. If you are successful , then your tax refund and other federal payments will not be offset , or the amount being offset may be reduced. If you are unsuccessful , then your tax refund and other federal payments will be offset.


If your Social Security disability benefits are being withheld , the withholding of those benefits will be suspended if the Social Security Administration SSA makes a determination that you are totally disabled, with medical improvement not expected. However , if the SSA later converts your disability benefits to retirement benefits , the withholding of your Social Security benefits may resume without notice.


For more detailed information about Treasury offset or the review process including how to request a review , contact your loan holder. If you don t know who your loan holder is , you can find out by logging in to My Federal Student Aid.


Withholding Money From Your Wages


Your loan holder can order your employer to withhold up to 15 percent of your disposable pay to collect your defaulted debt without taking you to court. This withholding garnishment continues until your defaulted loan is paid in full or removed from default.


With garnishment , you have the right to be sent a notice that explains ED s intention to garnish your wages in 30 days, the nature and amount of your debt, your opportunity to inspect and copy records relating to your debt, your right to object to garnishment, and your option to avoid garnishment by voluntary repayment ; be given an opportunity to enter into a written agreement under terms agreeable to ED to establish a voluntary repayment agreement ; be given an opportunity for a hearing to present and obtain a ruling on any objection you have to the existence, amount, or enforceability of the debt ; any objection that garnishment of 15 percent of your disposable pay would produce an extreme financial hardship ; or any objection stating that garnishment cannot be used at this time because you ve been employed for less than 12 months after having previously been involuntarily separated from employment ; have the garnishment action withheld by filing a timely request for a hearing, until the hearing is completed and a decision issued ; not be discharged from employment, refused employment, or subjected to disciplinary action due to the garnishment, and to seek redress in federal or state court if such action occurs ; initiate any legal action against your employer if the employer discharges, refuses to hire, or takes disciplinary action against you based on the garnishment action ; and not have any information provided to your employer regarding the garnishment other than what is necessary for the employer to comply with the withholding order.


One way to avoid garnishment of 15 percent of your disposable pay is to negotiate repayment terms acceptable to ED or the private collection agency and ensure that ED receives the first payment no later than 30 days from the date the garnishment notice was sent.


Your other option to avoid garnishment is to make a request for a hearing. You should make a hearing request in writing, postmarked no later than 30 days from the date the garnishment notice was sent ; make a request for a hearing , even if you are requesting copies of documents , because requesting documents doesn t delay a garnishment order ; provide proof to support any objection made to the existence, amount, or enforceability of the debt, or financial hardship; and pay any expenses you incur to obtain legal representation and to attend an in - person hearing. (All in-person hearings are held at one of the three regional offices: Atlanta, Chicago, or San Francisco. You are responsible for the cost of attending and the cost of any witnesses that attend on your behalf.)


Your loan holder will arrange the hearing. The hearing may be held in person or on the phone or may be based simply on records you submit to make your case. A decision about whether your wages will be garnished will usually be made within approximately 60 days from the day that your hearing request is received.


If you are successful in your hearing , then your wages will not be garnished for a period of 12 months or the amount garnished may be reduced partial garnishments are reviewed annually.


If you are unsuccessful in your hearing , then your wages will be garnished at the full 15-percent rate allowed by law.


For more detailed information about wage garnishment or the hearing process including how to request a hearing , contact your loan holder. If you don t know who your loan holder is , you can find out by logging in to My Federal Student Aid.


Find out what to do if you believe your loan has been placed in default by mistake.


If my loan is placed with a collection agency, what other costs might I incur?


After you default , you are liable for the costs of collecting your defaulted federal student loans. The largest of these costs are usually the costs of placing your loan with a private collection agency. They amount to 17.92% of your outstanding balance, which includes principal, interest, and fees.


Before a defaulted loan is placed with a private collection agency , ED will explain what you can do to avoid both the assignment to a private collection agency and the reporting of default status to credit agencies.


If you do not enter into a repayment agreement for your defaulted federal student loans , ED will refer your loans to a private collection agency. Private collection agencies earn a commission for any payments you make on loans that ED has referred for collection. When you make a payment , the payment is first applied to the collection cost we charge 17.92% of your outstanding balance due, with the remainder of the payment being applied to interest and principal on your loan. This is one reason that defaulting on your federal student loans can significantly increase the total cost of your loans.


On each billing statement , ED projects an estimate of the total amount needed to satisfy the debt on the date of the statement, including collection costs.


While the cost of placing your loan with a private collection agency is usually the largest collection cost you may face if you default , there may be other collection costs, such as Treasury offset processing fees and costs associated with potential civil litigation from the Department of Justice.


How do I contact a collection agency?


For the loans that it owns , ED currently contracts with the collection agencies that are identified below. If you ve heard from a collection agency but aren t sure how to get in touch with them , review the collection agency contact information below. If you do not know which collection agency your account may have been assigned to , you may contact ED s Default Resolution Group for the agency's address and phone number.


How do I contact ED s Default Resolution Group?


There are a variety of ways to contact ED s Default Resolution Group.


What should I do if I am contacted by someone who wants to charge me fees to get my federal student loan out of default?


Contact the Default Resolution Group. If you are contacted by a company asking you to pay " enrollment, " " subscription, " or " maintenance " fees to help you get out of default , you should walk away. The Default Resolution Group can help you get your loan out of default for free. Want to learn more? Read our blog post called " Don t Be Fooled: You Never Have to Pay for Student Loan Help. "


You might be eligible for a discharge of your federal student loans based on false certification.


Learn more about false certification discharge to see whether you might qualify.


You might be eligible for a discharge of your loan made under the William D. Ford Federal Direct Loan Direct Loan Program or Federal Family Education Loan FFEL Program if your school falsely certified your eligibility to receive a loan.


What are the eligibility requirements to qualify for a loan discharge based on false certification?


There are three categories of false certification through which you might be eligible for a discharge of your Direct Loans or FFEL Program loans : Ability to benefit: The school falsely certified your eligibility to receive the loan based on your ability to benefit from its training , and you didn t meet the ability - to - benefit student eligibility requirements that were in effect at the time the school determined your eligibility. Disqualifying status: The school certified your eligibility to receive the loan , but at the time of the certification, you had a status physical or mental condition, age, criminal record, or other circumstance that disqualified you from meeting the legal requirements for employment in your state of residence in the occupation for which the program of study was preparing you. Unauthorized signature or unauthorized payment : The school signed your name on the loan application or promissory note without your authorization or the school endorsed your loan check or signed your authorization for electronic funds transfer without your knowledge , and the loan money wasn t given to you or applied to charges you owed to the school.


How do I apply for a loan discharge?


If you have a Direct Loan or FFEL Program loan and you re ready to apply for the false certification discharge , you must complete the loan discharge application that applies to your circumstance : Loan Discharge Application : False Certification Ability to Benefit Loan Discharge Application : False Certification Disqualifying Status Loan Discharge Application : False Certification Unauthorized Signature / Payment *


* Complete the Loan Discharge Application : False Certification Unauthorized Signature / Payment only if you believe that an employee of the school that determined your eligibility for the loan signed your name on the promissory note or other loan documents without your authorization. If you believe that someone else other than a school employee forged your signature on a loan document or a loan was made in your name as a result of the crime of identity theft , contact your loan servicer.


Find out who your loan servicer is by logging in.


If you meet the eligibility requirements for a discharge, the entire remaining balance of your loan will be discharged , and any payments made on the loan will be refunded.


What happens if my loan discharge is denied?


You will remain responsible for repaying your loan. If you believe that your loan discharge application was denied in error or if you have additional information that you believe would support your eligibility for a false certification discharge , you may ask the U.S. Department of Education to review the denial.


I m a parent who received a Direct PLUS Loan to help pay for my child s education. Can my loan be discharged due to false certification?


Yes , some or all of your parent PLUS loan might be discharged if the school falsely certified the student s ability to benefit from its training , the student had a disqualifying status at the time the school certified your eligibility to receive the parent PLUS loan , or the school signed your name on the promissory note or other loan documents without your authorization.


Contact your loan servicer for more information.


You may be able to get money for college or career school for your or your family member s military service.


Scholarships and loan repayment assistance are available from a number of sources.


Both the federal government and nonprofit organizations offer money for college to veterans, future military personnel, active duty personnel, or those related to veterans or active duty personnel.


Try This Resource Scholarships for Military Families Provides resources and contact information for finding college scholarships for military families.


What financial aid does the government offer for military service or for family members of military personnel?


Below are a few sources of financial aid that you might want to consider. You also should explore todaysmilitary.com s list of education benefits for service members.


Reserve Officers Training Corps (ROTC) Scholarships


These scholarships are awarded on the basis of merit rather than financial need : Army ROTC scholarships are offered at more than 1,000 colleges. For application packets , information about eligibility, and the telephone number of an ROTC advisor in your area , call 1 - 888 - 550-ARMY 1 - 888 - 550 - 2769 or visit the Army ROTC web page. The Air Force ROTC college scholarship program targets students pursuing certain foreign language and technical degrees, although students entering a wide variety of majors may be accepted. For more information , call 1 - 866 - 4-AFROTC 1 - 866 - 423 - 7682 or visit the Air Force ROTC Scholarship web page. The Navy ROTC offers both four - year and partial scholarships. To learn more , call 1 - 800-NAV - ROTC 1 - 800 - 628 - 7682 or visit the Navy ROTC website. The Navy ROTC Marine Option Scholarship helps you pay your way through college at approved Navy ROTC schools. Learn more about the Navy ROTC Marine Option Scholarship.


Department of Veterans Affairs (VA) Education Benefits


The VA offers education benefits for veterans and for their widows and dependents on its GI Bill site.


Iraq and Afghanistan Service Grant or Additional Federal Pell Grant Funds


If your parent or guardian died as a result of military service in Iraq or Afghanistan after the events of 9/11 , you may be eligible for additional aid. To be eligible, at the time of your parent s or guardian s death , you must have been less than 24 years old or enrolled at least part - time at a college or career school. Payments will be adjusted if you are enrolled less than full - time. Federal Pell Grants : If you meet the requirements above and are eligible to receive a Pell Grant , you will receive an Expected Family Contribution EFC of zero, which maximizes your Pell Grant eligibility and can increase your eligibility for other federal student aid programs. Iraq and Afghanistan Service Grants : If you meet the requirements above but are not eligible for a Pell Grant based on your EFC, you will be eligible to receive the Iraq and Afghanistan Service Grant. The maximum amount of the Iraq and Afghanistan Service Grant is the same as the maximum Pell Grant award. Your EFC will not be affected , and therefore neither will your eligibility for any need - based federal student aid.


Limited Interest Rates, No Accrual of Interest, and Deferment of Student Loans


To receive the benefits below , contact your loan servicer for information about the documentation you must provide to show that you qualify. Under the Servicemembers Civil Relief Act , if you took out student loans prior to entering the military or being called to active duty , the interest rate on those loans will be limited to 6% during your active duty military service. This applies to both federal and private student loans and other loans as well. For all Direct Loans first disbursed on or after Oct. 1 , 2008 , no interest will be charged for a period of no more than 60 months while you are serving on active duty or performing qualifying National Guard duty during a war, other military operation, or national emergency and are serving in an area of hostilities qualifying for special pay. For Direct Consolidation Loans , this benefit applies to the portion of the consolidation loan that repaid loans first disbursed on or after Oct. 1 , 2008. You will qualify for deferment of repayment on any of your federal loans while serving on active duty in the military, or performing qualifying National Guard duty, during a war, military operation, or national emergency. If your period of active duty service includes Oct. 1 , 2007, or begins on or after that date , your deferment will be extended for an additional 180 days after the demobilization date for each period of qualifying service. If you are a member of the National Guard or other reserve component of the U.S. armed forces current or retired and you are called or ordered to active duty while you are enrolled at least half - time at an eligible school or within six months of having been enrolled at least half - time , you qualify for deferment of repayment on your federal student loans during the 13 months following the end of your active duty service, or until you return to school on at least a half - time basis, whichever is earlier.


What financial aid do veterans service organizations offer for military service or for family members of military personnel?


The following major national organizations offer scholarships primarily to active duty military, veterans, and/or their families : American Legion AMVETS Paralyzed Veterans of America Veterans of Foreign Wars


There are many smaller veterans service organizations around the country that might offer scholarships. Check with your local organization or try a scholarship search.


How can I submit a complaint about how my college or career school is administering my financial aid?


Do you believe your school is not administering federal student aid funds properly? Here s some information that might help you determine how to solve your problem or submit a complaint.


Your college or career school not the U.S. Department of Education will distribute your financial aid. If you have questions about why your aid hasn t been paid out yet, or why it wasn t the amount you expected , contact your school.


IF: your school violated its own policy or federal regulations in its administration of the federal student aid programs for instance, if You believe your school calculated your eligibility for federal student grants, loans, or work - study incorrectly ;


your school disbursed paid out your aid or your credit balance incorrectly in the wrong amount, at the wrong time, or not at all ; your school doesn t have a financial aid administrator yet is participating in the federal student aid programs, doesn t have policies or procedures for administering the federal student aid programs, or has policies but isn t following them ; your school or its representative has made false or misleading statements about the school s educational programs, financial charges, employability of graduates, etc.


and if you have tried to work things out with the school but have been unable to THEN : You may contact the Federal Student Aid Feedback Center or call 1 - 844 - 651 - 0077.


IF : You think your school awarded aid to someone else in your name THEN: Learn about identity theft and how to report it to our Office of Inspector General Hotline.


How can I learn more about military service?


Contact a recruiter to learn more about service with the following military branches : marines.com navy.com goarmy.com airforce.com gocoastguard.com


While completing the FAFSA form, you must list at least one college to receive your information.


The schools you list will use your FAFSA information to determine the types and amounts of aid you may receive.


The information you report on the Free Application for Federal Student Aid FAFSA form is sent to each school you list. Use the Federal School Code Search to find the colleges you re interested in including on your FAFSA form. You don t need to apply for admission to a school before you list it on your FAFSA form ; you can list all the schools to which you have applied or might apply. The school will have access to your information within a few days of when you submit your FAFSA form but will not necessarily contact you with an aid offer right away. Learn about what happens after you fill out the FAFSA form.