Student Loan Repayment in Today's Economy

Begin with the loans you actually have

Sign in to the official Federal Student Aid account and inventory each federal loan, its servicer, balance, interest rate, status, and repayment plan. Private loans follow different contracts and are not automatically eligible for federal repayment or forgiveness programs.

Avoid advice built around a plan name alone. Eligibility can depend on loan type, disbursement date, income, family size, employment, and current law.

Compare payment and total cost

Federal Student Aid's Loan Simulator can compare eligible plans and estimate monthly and total payments. A lower monthly bill can improve near-term cash flow while increasing time in repayment or total interest. Review both numbers and the assumptions behind them.

Income-driven repayment may be useful for some borrowers, but requirements and availability can change. Confirm the current rules on StudentAid.gov or with the federal loan servicer before submitting an application.

Act early when a payment is becoming difficult

Contact the servicer before missing a payment. Ask for the available repayment, deferment, or forbearance options and request the terms in writing. Be cautious with companies charging for access to federal forms or promising guaranteed forgiveness.

• Keep copies of applications, notices, and confirmation numbers.
• Recertify information by the stated deadline when a plan requires it.
• Check the official account after any transfer or plan change.
• Use a nonprofit or qualified professional when the situation requires individualized advice.