Top 10 Faqs For Your Student Loans

6/14/2019

Managing student loans starts with understanding what you owe, who services your loans, when repayment begins, and what repayment options are available. Federal and private student loans have different terms and protections, so knowing which type you have is important. Borrowers should incorporate student loan payments into their monthly budget, consider automatic payments, and contact their loan servicer early if payments become difficult to manage. Understanding your loans and staying proactive can help you avoid missed payments and make informed decisions about repayment.

3 Key Takeaways

1. Know what type of student loans you have and who services them. Federal and private loans have different terms and repayment options. Your loan servicer is generally your primary point of contact for questions about payments and your account.

2. Build student loan payments into your budget. Planning for student loans alongside rent, transportation, utilities, and other monthly expenses can make it easier to stay on track. Paying more than the required amount when your finances allow may also reduce the total interest you pay and help you become debt-free sooner.

3. If you're struggling with payments, act early. Contact your loan servicer before missing payments. Depending on the type of loan and your circumstances, different repayment, deferment, or other assistance options may be available.

Student loans can be complicated, and recent changes to federal repayment programs have given borrowers even more reason to review their options.

Whether you're preparing to make your first payment, have been repaying student loans for years or are struggling to keep up, understanding how your loans work can help you make more informed financial decisions.

Here are answers to 10 frequently asked questions about student loans.

1. How Do I Find Out What Student Loans I Have?

If you have federal student loans, start by logging in to your StudentAid.gov account. Your account can show your federal loan types, balances, interest rates, repayment plans and loan servicer information.

This is important because repayment options can vary depending on the type of federal loan you have and when it was disbursed.

Private student loans will not appear in your federal student aid account. For private loans, review your credit reports, previous loan documents and correspondence from lenders.

Knowing whether your loans are federal or private should be one of your first steps because federal loans generally provide repayment protections and benefits that private loans may not offer.

2. What Federal Student Loan Repayment Plans Are Available?

Federal student loan repayment options underwent significant changes recently.

Depending on your loans and when they were disbursed, you may have access to fixed-payment plans or an income-driven repayment plan.

One of the biggest changes is the introduction of the Repayment Assistance Plan, or RAP. RAP bases payments on a borrower's adjusted gross income, with payments generally ranging from 1% to 10% of income, divided by 12. The payment can also be reduced based on the number of eligible dependents, although the minimum monthly payment is $10.

For borrowers whose loans were all disbursed on or after July 1, 2026, RAP is the only income-driven repayment option.

Borrowers with eligible loans disbursed before July 1, 2026 may have additional options, including:

• Income-Based Repayment (IBR)

• Pay As You Earn (PAYE)

• Income-Contingent Repayment (ICR)

• Repayment Assistance Plan (RAP)

The SAVE Plan is no longer available.

Because eligibility now depends heavily on your individual loan history, don't assume that a repayment plan available to another borrower will also be available to you. Use the federal student loan Repayment Calculator at StudentAid.gov to compare the plans for which your loans qualify.

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3. Can I Lower My Monthly Student Loan Payment?

Possibly.

If you have federal student loans and your payment is difficult to manage, an income-driven repayment plan may provide a lower monthly payment based on your income and family size.

Under RAP, for example, monthly payments are based on adjusted gross income and can be reduced for eligible dependents.

But the lowest monthly payment isn't necessarily the least expensive option over time.

Extending repayment can mean paying interest for a longer period. When comparing plans, consider:

• Your monthly payment

• How long you will be making payments

• The total interest you may pay

• Whether you are pursuing loan forgiveness

• Whether a remaining balance may eventually be discharged

The goal should be to find a payment that works with your budget while also understanding its long-term cost.

4. What's the Difference Between Deferment and Forbearance?

Both deferment and forbearance can allow eligible federal student loan borrowers to temporarily postpone or reduce payments, but they are not the same.

Eligibility requirements vary, and whether interest continues to accrue can depend on the type of loan and the relief being used.

These options can provide important temporary relief during periods of financial difficulty, unemployment or other qualifying circumstances. However, they should not automatically be your first choice if a more affordable repayment plan is available.

Before requesting deferment or forbearance, ask your loan servicer:

• Will interest continue to accrue?

• Will this affect progress toward forgiveness?

• How long can I use this option?

• Would an income-driven repayment plan be a better alternative?

Understanding what happens to your balance while payments are paused is important.

5. Should I Consolidate My Federal Student Loans?

Federal loan consolidation combines eligible federal student loans into one new Direct Consolidation Loan.

Consolidation can simplify repayment and, in some circumstances, may provide access to repayment or forgiveness options that weren't previously available.

But consolidation is not automatically beneficial.

Your new interest rate is generally based on a weighted average of the interest rates on the loans being consolidated, so federal consolidation isn't the same thing as refinancing to obtain a lower market interest rate.

Consolidation can also affect your repayment terms and potentially your progress toward forgiveness.

If you're working toward Public Service Loan Forgiveness or another forgiveness program, check how consolidation would affect your qualifying-payment count before proceeding.

6. Should I Refinance My Student Loans?

Refinancing and federal loan consolidation are two different things.

Student loan refinancing generally means obtaining a new loan from a private lender and using it to pay off one or more existing loans. Depending on your credit, income and market interest rates, refinancing could potentially provide a lower interest rate or different repayment terms.

However, refinancing federal student loans with a private lender means those loans are no longer federal student loans.

That can mean permanently giving up federal benefits and protections, including access to federal income-driven repayment plans, certain deferment and forbearance options, and federal loan forgiveness programs.

For that reason, carefully compare the potential interest savings with the federal protections you would lose before refinancing federal loans.

Refinancing existing private student loans may involve a different calculation because those loans do not carry the same federal protections.

7. Can My Student Loans Be Forgiven?

Some federal student loan borrowers may qualify for loan forgiveness or discharge.

One of the best-known programs is Public Service Loan Forgiveness, or PSLF. Eligible borrowers generally must work full time for a qualifying public-service employer and make 120 qualifying monthly payments while meeting the program's other requirements.

The 120 payments do not have to be consecutive.

Some income-driven repayment plans can also provide discharge of a remaining eligible balance after the required repayment period.

Other discharge programs may be available in circumstances such as total and permanent disability, school closure or certain other qualifying situations.

Forgiveness programs have specific requirements, so borrowers pursuing forgiveness should regularly verify their eligibility and keep their employment and loan information current.

8. What Happens If I Can't Make My Student Loan Payment?

Don't ignore the bill.

If you know you won't be able to make a federal student loan payment, contact your loan servicer as soon as possible. You may have options before the loan becomes delinquent or enters default.

Depending on your circumstances, those options could include:

• Changing repayment plans

• Applying for an income-driven repayment plan

• Deferment

• Forbearance

• Other available repayment assistance

Private lenders may also offer hardship programs, but these vary considerably by lender and loan agreement.

If you're already behind, don't assume it is too late to take action. Contact your servicer and ask specifically what options are available for bringing the loan back into good standing.

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9. What Happens If My Federal Student Loans Go Into Default?

Default is more serious than simply missing a payment.

Defaulted federal student loans can lead to significant financial consequences and may make you ineligible for certain repayment benefits while the loan remains in default.

If your federal student loans are already in default, options may be available to resolve the default.

Loan rehabilitation is one potential route. After successfully completing rehabilitation requirements, the loan is no longer in default and you may regain access to repayment options for which you qualify.

Consolidation may also be an option for some defaulted federal loans. Depending on the circumstances, borrowers may be able to consolidate eligible defaulted loans into a Direct Consolidation Loan and agree to repay the new loan under an eligible repayment plan.

Don't wait for the problem to resolve itself. The earlier you address a defaulted student loan, the sooner you can begin evaluating your options.

10. Where Can I Get Help With My Student Loans?

For federal student loans, StudentAid.gov should be one of your primary sources of information. You can use your account to review your loans, identify your servicer and explore repayment options.

Your federal student loan servicer can also answer questions about your account and process repayment-plan requests.

Most importantly, you should not have to pay a company simply to apply for a federal repayment plan or access federal student loan assistance.

Be cautious of companies that promise immediate loan forgiveness, claim they can eliminate your student loans for a fee, pressure you to act immediately or ask for sensitive account credentials.

If you're unsure how your student loans fit into your overall financial situation, nonprofit financial counseling can also help. A counselor can review your student loans alongside your income, household expenses and other debts so you can better understand your options and create a realistic financial plan.

Student Loan Rules Have Changed. Make Sure Your Strategy Has Too.

If you haven't reviewed your student loans recently, now is a good time to do it.

Federal student loan repayment changed significantly in 2026, and the best option for you may depend on when you borrowed, the types of loans you have, your income, your family size and whether you're pursuing loan forgiveness.

Start by reviewing your loans and current repayment plan at StudentAid.gov. Then compare your available options before making a change.

Student loans are only one part of your financial picture. The right repayment strategy should help you manage your loans while still leaving room in your budget for your other financial priorities and goals.

 

 

 

 

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