Loan Repayment and Loan Forgiveness


Loan Repayment
There are various loan repayment plans available for students who have borrowed federal student loans.   You may choose the plan that best meets your needs based on your career goals and what you can afford to repay each month. Borrowers will automatically be placed into the Standard Repayment Plan, unless you select an alternative plan. You may change your repayment plan if necessary by contacting your loan servicer.  Information about each of the loan repayment plans is available on the U. S. Dept. of Education’s Federal Student Aid website.


Income Driven Repayment Plans
Students who incur significant federal student loan debt often choose the Income Based Repayment Plan or the Pay As You Earn Repayment Plan in order to make loan repayment more affordable.  Each of these plans calculates the monthly repayment amount based on the amount the student earns, rather than the amount the student has borrowed.  Each of these plans also provide for loan forgiveness.  You can calculate your estimated monthly repayment amount by using the repayment calculators provided on the U. S. Dept. of Education’s Federal Student Aid website.


Public Service Loan Forgiveness
If you are interested in a career in public service, the U. S. Dept. of Education offers Public Service Loan Forgiveness of Federal Direct Student Loans.  Students who make 120 on-time monthly payments under a qualifying repayment plan on their Federal Direct Student Loans while working full-time in a qualified public service job may be eligible to get the unpaid balance of the Federal Direct Student Loans forgiven.