How to Repay Government Financial Aid

When you leave school, graduate, or drop below a half time status as a student, the government requires you to repay your financial aid obligations. Federal Student Aid has made the repayment process relatively smooth and typically offers a grace period before your payment schedule begins. Before you begin to repay your financial aid debt, there are proper steps and procedures that you should be aware of that will help you to understand your options, set up the perfect payment plan for you and calculate your exact interest rate.

Instructions

    • 1

      Review and complete your exit counseling, which will be provided by either your lender, school or online. Contact your school's financial aid office to determine how exit counseling is handled. Be certain to read the information provided in your exit counseling paperwork thoroughly as it will detail your rights and responsibilities in regards to repayment.

    • 2

      Determine which kinds of loans you need to repay. Contact your lending company for Stafford loans, your school for Perkins loans and the U.S. Department of Education's Direct Loan Servicing Center for direct loans. Visit the National Student Loan Data website at http://www.nslds.ed.gov/nslds_SA/ if you are unsure of who your lender is. Note that you will need to have a student pin number in order to access your records.

    • 3

      Determine which repayment plan will work best for you based on the plans available. Typical plans include standard, income sensitive, income based and extended. Visit the Federal Student Aid's repayment plan and calculator site at http://studentaid.ed.gov/PORTALSWebApp/students/english/OtherFormsOfRepay.jsp if you need additional information on repayment plans and interest rates.

    • 4

      Set up your repayment plan with your lender or lending service. Keep a record of the dates each month that your payment is due.

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