Loan Repayment
Know Your Loan Servicer
Your loan servicer is one of your most important resources throughout the repayment process. Getting to know them now, before repayment begins, is one of the best things you can do for yourself.
A loan servicer is the company assigned to manage your federal loans. They handle your payment processing, track your principal and interest, respond to your questions, and walk you through your repayment options. Because different types of loans may be assigned to different servicers, it’s possible to have more than one, which is why knowing who each of them are matters.
Each of your servicers will provide you with repayment requirements specific to your loans, including when your first payment is due and how much your monthly payments will be. Read that information carefully and make sure you understand what’s expected before your first payment comes due.
To find your federal loan servicer, log in to your account at studentaid.gov. Make sure your current contact information is up to date with each servicer. This will ensure you receive all important notifications on time.
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When Does Repayment Begin?
For federal student loans, repayment does not begin while you are enrolled at least half-time. Once you graduate, withdraw, or drop below half-time enrollment, your loans will enter a grace period before your first payment is due. This grace period gives you time to get settled and plan your finances before payments begin.
Grace period lengths vary by loan type. Make sure to check your promissory note documentation or contact your loan servicer to confirm the specific grace period that applies to your loans. Don’t wait until the grace period ends to start planning. The more time you give yourself to understand your options, the better positioned you will be to choose a repayment plan that works for your life.
Federal Direct Loan Repayment Options
One of the significant advantages of federal loans over private loans is the range of repayment options and protections available to borrowers. Depending on your situation, these may include:
- Income-Driven Repayment Plans — monthly payments based on your income and family size, with forgiveness of any remaining balance after a set number of years
- Public Service Loan Forgiveness (PSLF) — forgiveness after 120 qualifying payments while working full-time for an eligible public service employer
- Deferment and Forbearance — temporary options to pause or reduce payments during periods of financial hardship or qualifying circumstances
- Loan Consolidation — combining multiple federal loans into a single loan with one servicer and one monthly payment
The Federal Student Aid website provides detailed, up-to-date information on all of these options, including a Loan Simulator tool that lets you use your actual loan information to model different repayment scenarios and find the plan that best fits your financial situation.
Important Changes to Repayment Starting in 2026–2027
Federal loan repayment options are changing significantly under the One Big Beautiful Bill Act (OBBBA). What applies to you depends on when your loans were disbursed. Here is what you need to know:
If your loans were first disbursed on or after July 1, 2026: You will have access to two repayment plans:
- A new Standard Repayment Plan with fixed monthly payments over a term of 10 to 25 years, based on the total amount borrowed.
- The new Repayment Assistance Plan (RAP), an income-driven option with a 30-year repayment timeline and forgiveness of any remaining balance at the end.
One critical note about RAP: once you enroll in RAP, you cannot switch back to the Standard Plan. Take time to understand both options before making your choice, our financial aid team can help you think through which plan fits your goals.
If your loans were disbursed before July 1, 2026, and you take no new loans after that date: You may remain on your current income-driven repayment plan, including IBR or PAYE. However, the SAVE plan has been eliminated following a federal court ruling in March 2026. If you are currently enrolled in SAVE, you need to switch plans as soon as possible.
All borrowers still on PAYE, ICR, or SAVE must transition to IBR or RAP by June 30, 2028. If you do not make this change before the deadline, you will be automatically moved to RAP, which means you lose the ability to choose for yourself. We strongly encourage you to act before that deadline rather than waiting for an automatic transition.
If you borrow both before and after July 1, 2026: All of your loans, old and new, will be subject to the new repayment plan structure. This is an important consideration if you are a continuing student planning to borrow again in 2026–2027 or beyond.
Additional Resources
The following official resources are available to help you navigate loan repayment: