FEDERAL LOAN REPAYMENT
Payment of principle and interest is deferred as long as the student is enrolled on at least a half time basis (18 or more units per semester). Additionally, the Stafford Loan provides a 6-month grace period for loan repayment after graduation or ceasing half time enrollment. Repayment of Grad Plus begins within 45 days of the end of the in-school deferment; however, you may defer payment for 6 months after you cease to be enrolled on at least a half-time basis. Students have the option of making in-school payments, including interest-only payments. Any unpaid interest that accrues while the borrower is in an in-school deferment period is capitalized when repayment begins (added to the principle balance on the loan).
There is no prepayment penalty on Federal Direct Loans. Federal Direct Loans offer liberal repayment options including in-school deferments, unemployment deferments once in repayment, military deferments, economic hardship forbearance, loan forgiveness for certain public service employees, etc.
Understanding Federal Loan Repayment
Includes information about:
- Making payments/repayment plans/payment estimator
- Loan servicers
- Loan consolidation
- Loan forgiveness/cancellation/discharge
Federal Loan Exit Counseling
Exit counseling provides an explanation of repayment, deferment, and cancellation privileges. Students who are graduating or who are not enrolled at least half-time for the upcoming semester are required to complete exit counseling. The Tepper School Financial Aid Office will notify students by email when they are required to complete an exit counseling. To complete exit counseling, visit the Department of Education's Federal Student Aid website and click the Log In" button. Your Department of Education FSA ID is required to sign in. Failure to complete the requested information does not relieve you of your debt.
Perkins Loan Exit Counseling
Students who borrow a Perkins Loan, in addition to a Subsidized, Unsubsidized, and/or Graduate Plus Loan must complete a second exit counseling session with our Perkins Loan service provider, Heartland Educational Computer Systems, Inc (ECSI). The Tepper School Financial Aid Office will notify students by email when they are required to complete an exit counseling. Heartland ECSI will provide you with instructions and answer any questions you have concerning this additional exit counseling. If you do not receive instructions from Heartland ECSI, please contact them at 888-549-3274. Failure to complete the requested information does not relieve you of your debt.
NSLDS (National Student Loan Data System)
Access information about your federal loan portfolio.
Visit this federal website for information on managing your money.
Secure Your Credit Report
You are entitled by law to one free credit report per year via www.annualcreditreport.com for each of the following credit reporting companies:
Equifax Encite Program
PO Box 740249
Atlanta, GA 30374
Experian National Consumer Assistance Center (formerly TRW)
PO Box 949
Allen, TX 75013-0949
Trans Union Corporation Consumer Disclosure Center
PO Box 390
Springfield, PA 19064-0390
FEDERAL LOAN CONSOLIDATION
The decision of whether or not to consolidate your federal loans is very individual. The following links provide helpful information for students considering consolidation or another repayment option.
Should I Consolidate?
FAQs about Federal Loan Consolidation (finaid.org)