Federal Student Loan Repayment Assistance
Borrowing student loans can help you reach your educational goals, but repayment is an important part of borrowing responsibly. Whether you are preparing to graduate, leave school, or already in repayment, understanding your options can help you stay on track and avoid delinquency or default.
What You Need to Know:
- when repayment begins
- repayment plan options
- what happens if you miss payments
- how to avoid delinquency and default
- where to get help
When Do I Start Repaying My Student Loans?
For most federal student loans, repayment typically begins after you graduate, leave school, or drop below half-time enrollment.
Most federal loans include a grace period, often six months, before your first payment is due.
Before repayment begins, make sure you:
- know who your loan servicer is
- confirm your current balance
- update your contact information
- understand your monthly payment amount
Students can review their federal loan history through Federal Student Aid.
Know Your Repayment Options
Federal student loans have several repayment options based on your income, family size, and total loan balance.
If your monthly payment feels unaffordable, contact your loan servicer right away. Waiting until you miss a payment can make things harder to resolve
You can compare plans through the Federal Student Aid Repayment Estimator.
What Happens If I Miss a Payment?
A federal student loan becomes delinquent the first day after a missed payment.
Even one missed payment can lead to problems such as:
- late notices from your servicer
- additional collection activity
- damage to your credit history
- difficulty qualifying for future credit
The sooner you contact your loan servicer, the more options you may have.
What is Default?
For most federal student loans, default generally occurs when payments have not been made for 270 days.
Default can have serious consequences, including:
- loss of eligibility for additional federal student aid
- significant credit damage
- wage garnishment
- tax refund offsets
- collection fees
Default can affect more than just your student loans — it can impact future financial goals such as renting an apartment, financing a car, or qualifying for a mortgage.
ECMC Resources
Need help understanding your options or picking the best repayment plan? We have contracted with non-profit industry expert ECMC Solutions to provide free advice to student loan borrowers. Contact ECMC Solutions today for one-on-one counseling – pick the best repayment plan to meet your goals, learn about Deferment, Forbearance, Public Service Loan Forgiveness and more. Call a counselor today at 877-331-3262 or schedule an appointment!
