Repayment Options

Review Repayment Options

FSA offers a variety of options to manage the repayment of your loans including repayment plans and ways to lower your payment or provide temporary relief. Apply on StudentAid.gov  this link will open in a new window to automatically retrieve last year's income tax information from the IRS. Sign in using your Federal Student Aid ID, and then select "Apply for Income-Driven Repayment." Follow the instructions to submit your application online. You can create an FSA ID before completing the application. To explore options that are available based on situations you may be facing, visit Repayment Options.

Repayment Plans

Several repayment plans are available to help manage your student loan account. Each repayment plan has distinct requirements which may result in paying less interest over time or offer greater benefits such as loan forgiveness. If your circumstances don’t fit the repayment plans listed below, we encourage you to visit studentaid.gov/loan-simulator   this link will open in a new window to review your options.

Options to Postpone Repayment

If you are unable to make your payments, deferment or forbearance may be an option for you.

Deferment

Deferment allows you to temporarily stop making payments on your federal student loans based on meeting certain requirements. During deferment, interest does not accrue on subsidized loans.

Available Deferment Types

• Cancer Treatment Deferment - You may be eligible during a period when you are undergoing cancer treatment and for the six months following the conclusion of the treatment. Loan(s) under the DL Program or FFEL Program which were either made on or after 9/28/2018, or had entered repayment on or before 09/28/2018, are eligible.

• Economic Hardship Deferment – You may qualify if you receive government public assistance, are a Peace Corp volunteer, or are working full-time and have a monthly income that does not exceed the greater of (a) the minimum wage rate or, (b) an amount equal to 150% of the poverty guideline applicable to your family size.

• In-School Deferment – Full-time in-school deferments are available to borrowers attending an eligible school. Half-time, in-school deferments are available to DL borrowers. Parent PLUS borrowers may request that repayment of a Parent PLUS loan first disbursed on or after 07/01/2008 is postponed while the dependent student, on whose behalf the loan was taken out, is enrolled and attending at least half-time.

• Military Service Deferment – You must be serving on active duty during a war or other military operation with a branch of the military (Army, Air Force, Marines, Navy, or National Guard). Documentation with enlistment dates must be certified by a commanding officer. Your military service must have begun on or after 10/01/2007. You or your representative may be able to request the deferment, without documentation, for up to a year.

• Parent PLUS Borrower With Dependent Student Deferment – New-1 and DL1 Parent PLUS borrowers may elect to have repayment of a Parent PLUS loan postponed while the dependent student, on whose behalf the loan was taken out, is enrolled and attending at least half-time.

• Post Active-Duty Deferment – You must be a member of the National Guard or Armed Forces Reserve, including a member in retired status who is called or ordered to active-duty service. Service must be for a period of at least 30 consecutive days while enrolled at least half-time in an eligible school at the time of, or within six months prior to, your activation. Active duty does not include training or service school attendance. Documentation must establish an end-of-military service date, and a verbal or written request for the option must be provided. Your military service must have begun on or after 10/01/2007 to qualify.

• Post-Enrollment Deferment – For Parent PLUS and Grad PLUS loans first disbursed on or after 07/01/2008, you may request that repayment begin six months following the less-than-half-time status of the dependent student (Parent PLUS) or the student borrower (Grad PLUS).

• Rehabilitation Training Deferment – You must receive, or be scheduled to receive, rehabilitation training services from a rehabilitation training program that is licensed, approved, certified, or otherwise recognized to provide training for vocational rehabilitation, drug abuse treatment, mental health services, or alcohol abuse treatment programs, or by the Department of Veterans Affairs.

• Unemployment Deferment – You must be unemployed or work less than 30 hours per week. You must also be receiving unemployment benefits or be registered with an eligible employment agency and seeking full-time work in any field in the United States.

Forbearance

Forbearance is a temporary postponement of payment, and the interest on both subsidized and unsubsidized loans accrues and remains the responsibility of the borrower. You can pay the accrued interest at any time; if left unpaid it may be capitalized (added) to the loan principal balance at the end of the deferment or forbearance. You have the right to stop or cancel a deferment or forbearance at any time.

Available Forbearance Types

• Active Military Duty Forbearance (FFEL/DL) – You must be serving on active military state duty as a member of the National Guard, including a member in retired status, during a time when the governor activates National Guard personnel for active state duty for a period of more than 30 consecutive days. This forbearance is for a borrower who qualified for a Post-Active Duty Student Deferment, but who does not currently qualify for a Military Service Deferment, or other deferment, while engaged in active military service for their state.

• Cancer Treatment Forbearance - If you are not eligible for the Cancer Treatment Deferment your loan(s) may be eligible for a Cancer Treatment Forbearance for the period when you are undergoing cancer treatment and for the six months following the conclusion of the treatment. See the Cancer Treatment Deferment   this link will open in a new window form for additional information.

• Department of Defense (DOD) Loan Repayment Program Forbearance (FFEL/DL) – You must be performing service for the U.S. DOD that would qualify you for partial loan repayment under the Student Loan Repayment Programs administered by the U.S. DOD. The beginning and end dates of your eligibility must be certified by an authorized official.

• Economic Hardship (FFEL)/Loan Debt Burden (DL) Forbearance – Payments on your loan(s) must be equal or greater than 20% of your gross monthly income. This forbearance may be placed for a period not to exceed 12 months at a time. Documentation of income and student loan payments is required.

• General Forbearance (FFEL/DL) – If you are experiencing a temporary financial hardship or are attending school and not eligible for an In-School Deferment, you may request a General Forbearance. This option may be placed for a period not to exceed 12 months at a time.

• Internship/Residency Forbearance (FFEL/DL) – You must be engaged in an eligible medical or dental internship/residency program.

• National Community Service Forbearance – You must be serving in a position for which you receive a national service educational award under the National and Community Service Trust Act of 1993 (AmeriCorps). Documentation from an authorized official certifying the beginning and ending dates of this service must be submitted.

• Teacher Loan Forgiveness Forbearance (FFEL/DL) – You may postpone repayment on eligible loans if you are employed as a full-time teacher at a Title I (low-income) school and expect to apply for Teacher Loan Forgiveness. You are eligible if the expected forgiveness amount for which the qualifying service is being performed will satisfy the anticipated outstanding balance of your eligible loans at the end of the fifth year of qualifying service. You must not have had a balance on a FFEL or DL Program loan as of 10/01/1998, or on the date you obtained a DL of FFEL Program loan on or after 10/01/1998.