Federal Student Loan Payback

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Federal Student Loan Payback

Federal loans are interest-free during the grace period.

Once you’ve graduated from school and entered your grace period, you don’t have to make payments during that time. This can be anywhere from six months to a year, depending on the type of loan you have.

For example: If you graduated in May with $31,000 in student debt and took out a Direct Subsidized Loan for $12,000 and a Direct Unsubsidized Loan for $19,000, your federal student loans would enter their grace periods on June 1st (6 months after graduation). While neither of these loans are required to pay back interest during their grace periods—which is something that all federal education loans offer—it’s important to know what happens when those periods end so that you’re prepared for their eventual return.

Federal loans have fixed interest rates.

Fixed interest rates are set by Congress. This means that you won’t have to worry about your interest rate rising as your credit score declines, or if the Fed raises rates. Fixed rates are also fixed in time: they’ll stay fixed until you pay off the loan, regardless of any changes to the market or in your credit profile.

You should plan to make monthly payments during your grace period.

According to the Department of Education, your grace period typically starts six months after graduation and ends nine months after you leave school. During this time, you don’t have to make monthly payments on your student loans.

However, it’s important that you have a plan in place during this time so that once it’s over, you can start making payments and paying down your debt as quickly as possible.

Here are some things to keep in mind:

If you’re having trouble making payments, contact your loan servicer to discuss your options.

When you’re having trouble making payments, contact your loan servicer to discuss your options. Your loan servicer is the company that is contracted by the federal government to handle customer service for federal student loans. They can help guide you through different repayment plans and give you advice based on your situation.

If you’re struggling to make payments on time, there are several options available:

  • Forbearance: If the lender agrees to postpone payments for up to 12 months, interest will continue to accrue during this period of time. After 12 months pass without any payments being made (or just one payment), all accrued interest will be added back onto your balance along with another round of monthly payments due at their current rate.
  • Deferment: This option allows borrowers who are experiencing financial hardship or unemployment issues (among other reasons) a chance to temporarily halt their monthly payments without accruing interest on those past due amounts until they’re able* Consolidation: Consolidating multiple loans into one new one helps simplify things if it seems like too much information is being thrown at you with each statement

Public service loan forgiveness programs can forgive federal loan debt if you work in certain fields.

  • Public service loan forgiveness programs can forgive federal loan debt if you work in certain fields.
  • How to find out if you qualify for public service loan forgiveness.
  • How to apply for public service loan forgiveness.
  • What happens if your application is rejected?

Federal loans don’t have to be scary and you have options.

Federal student loans are a great way to pay for college, and they can also be a great investment in your future. However, if you’ve been struggling with federal student loan payments or haven’t been able to make your payments at all, don’t panic! You have options.

If you’re having trouble making payments on your federal loans or need more information about options available for those who struggle with their monthly payment amounts, contact the servicer of each individual loan that is causing you problems. The address and phone number for each servicer can be found on our website here: https://studentaid.ed.gov/sa/repay-loans/make-payments#how-do-i-contact-my-loan-servicer


It can be scary to think about how much money you owe and how long it will take you to pay back your student loans. Don’t let that fear make you panic—there are plenty of options out there for federal student loan borrowers, whether you want more time to pay back your loans or need help finding resources that can alleviate some of the financial burden. We’ve covered some basic information here, but if this topic is something you’re really interested in learning more about, check out our other articles on student loan repayment!

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