Student Loan Repayment Federal

Student Loan Repayment Federal

Student loan repayment is a major financial decision for any student. It’s important to be aware of all of your options and understand the different kinds of federal aid you have available. In this blog post, we’ll go over some of the most popular types of student loan eligibility programs, including Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness (TLF), Income-driven repayment plans, Military Student Loan Repayment Program (MSLRP) and Perkins Loans Cancellation and Discharge (PLDC).


If you’re a student and wondering about loan repayment options for your federal student loans, this is the guide for you. We break down the basics of federal student loans and explain some of their more common features.

We also compare them to private student loans, which may be an option if your credit score is low or if traditional lenders have declined to give you a loan because of other factors such as recent bankruptcy or defaulting on previous payments.

What are the different types of student loans?

  • For federal loans, there are a few different loans you may have taken out. These include:
  • Federal Stafford Loans
  • Federal Perkins Loans
  • Federal PLUS Loans (parent)
  • Federal Consolidation Loans (all other federal loans into one)
  • Supplemental Loans for Students (SLS) This is an unsubsidized loan that students can take if they qualify. There is no time limit on when the borrower has to pay off this type of loan; however, interest will accrue from the date of disbursement until it’s paid in full or cancelled by the lender due to death or disability.

Public Service Loan Forgiveness

Public Service Loan Forgiveness (PSLF) is a program that forgives the remaining balance of your federal student loans after you have made 120 qualifying monthly payments. It applies only to eligible federal loans, which include Direct Loans and FFEL Program loans. In order for a mortgage loan or any other type of non-federal student loan to be eligible for PSLF, it must be consolidated into one of these types of federal student loans first. The following are some common questions about this program:

  • What’s the difference between Public Service Loan Forgiveness and Income-Driven Repayment Plans?
  • How do I know if my employer qualifies as a public service organization?
  • How much will my monthly student loan payment be on an Income-Driven Repayment Plan?

Teacher Loan Forgiveness

  • Teacher Loan Forgiveness

If you work in a low-income school or educational service agency, you may qualify for the Teacher Loan Forgiveness program. The Department of Education provides this information on their website:

“The TEACH Grant Program is part of the Higher Education Act (HEA) of 1965, as amended by the Higher Education Opportunity Act (HEOA) of 2008. This grant program provides funding to students who are preparing to teach in elementary and secondary schools that serve poor children.”

Income-driven repayment plans

If you have a low income, you may be eligible for an income-driven repayment plan that allows your monthly payments to be based on your income and family size. You will have to pay more than the minimum payment amount due each month, but the amount of your monthly payment can be adjusted. In some cases, depending on how much money you make and how many people are in your household, it may mean paying more than just the interest that accrues on your loan each month—you may need to also make up all or part of what’s called “principal” (the total amount borrowed) as well as interest.

Income-Driven Repayment Plans:

  • Income-Based Repayment Plan (IBR): With this plan borrowers pay 10% – 15% of their discretionary income per month toward their loans over 20 years or 25 years depending on when they took out their loans; there is no lifetime cap on payments under this plan and forbearance is not available unless necessary due to economic hardship; payments are recalculated annually based upon new information such as changes in income level or family size; only federal student loans can qualify for this option with parent PLUS loans ineligible for being included within an IBR calculation though other types such as private student loans may still qualify

Military Student Loan Repayment Program

The Military Student Loan Repayment Program (MSLRP) is an initiative that helps repay your outstanding federal student loans if you have served in the military.

  • What is the MSLRP?

The MSLRP is a program that pays off up to $65,000 of eligible student loan debt for qualified military members who agree to serve for at least three years in certain high-demand positions. The amount of money each service member will receive depends on their rank, specialty and type of service agreement they sign.

  • How does it work?

After enlisting in the armed forces and agreeing to work as a commissioned officer or enlisted soldier in a designated career field, you must apply for this benefit. If accepted into the program, you can use any excess money from your servicemen’s pay after taxes are taken out toward repaying your federal student loans through payroll deductions. You’ll also have access to an online dashboard where all payments made will be displayed so there’s no confusion about when or how much was paid out during each pay period..

Perkins Loans Cancellation and Discharge

  • Perkins Loans Cancellation and Discharge

If you took out a Federal Perkins Loan and have been unable to complete your program of study due to extended periods of illness, disability or other circumstances beyond your control, you may be eligible for cancellation. If eligible, any remaining balance on your federal loan will be canceled (less any amount owed due to discharge or cancellation).

It is important to know the different kinds of federal aid you have available for student loan repayment.

It is important to know the different kinds of federal aid you have available for student loan repayment. The types of federal aid available include work-study programs, grants and scholarships, and loans.

The types of federal loans for repayment include: Perkins Loans, William D. Ford Direct Loans (which are also known as Direct Subsidized or Unsubsidized), Federal Family Education Loan Program (FFELP) Stafford Loans, Parent PLUS loans, Consolidated Student Loan Program (CSLP) or Perkins Loans for Parents Program (PLPP).

The types of federal programs for repayment may include income-contingent payment options such as Pay As You Earn Repayment Plan (PAYE) Income Contingent Repayment Plan; Income Based Repayment Plan; Income Contingent Repayment Plan; Revised Pay As You Earn Repayment Plan; Graduated Payment Plans; In School Deferments/Repayment Option while completing coursework at a school that can be transferred towards a major offered by another school

It is important to know the different kinds of federal aid you have available for student loan repayment.

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