Loan repayment

Make a plan to repay your loans, know your options and don't be afraid to ask your loan servicer about deferment or forbearance options if you can't make your loan payments.

Before you graduate

  1. Complete required Federal Loan Exit Counseling

  1. Review your federal loans and your loan servicers

Loan repayment assistance

How to manage your student loans

Sample loan repayment schedule

Loan

Amount borrowed

Interest Rate

Standard Repayment Term

Interest

Total paid

Federal Direct Subsidized Loan (Undergraduate) 

$5,500

4.5%

120 months ($57/month)

$1,340.13

$6,840.13

Federal Direct Unsubsidized Loan 

$5,500

6.8%

120 months ($63.29/month)

$2,095.30

$7,595.30

Federal Direct PLUS Loan

$10,000

7.9%

120 months ($120.80/month)

$4,495.98

$14,495.98

Beware of companies that promise "Debt Relief"

Beware of student loan debt relief offers and credit repair "deals"

Companies that promise student loan borrowers loan cancellation, forgiveness, credit repair, or dramatically lowered payments usually charge fees for services that federal loan servicers offer free of charge. Signals to watch for to avoid being taken advantage of include:

  • You are asked to pay high fees in advance;
  • Your request for a company name, mailing address or phone number is refused;
  • You are pressured to make a decision immediately; or,
  • You are asked to sign paperwork giving the third-party company "Power of Attorney" or legal authority to negotiate on your behalf, and you are told not to contact your servicer after you complete the paperwork.

Precautions to take include:

  • Contact your student loan servicer if you have questions about your loans or want assistance to review your repayment plan options.
  • Do not pay for what is available for free. There are no fees to enroll in federal income-driven repayment plans that are based on your income.
  • Protect your personal information. Do not share personal financial or sensitive information about your federal student aid such as your Federal Student Aid ID.

Loan repayment forgiveness and cancellation

Learn more about federal loan forgiveness, cancellation and discharge on the Federal Student Aid website.

Income-driven repayment plans

These repayment plans limit your loan payments based on your income, family size and total loan debt. Under all four federal student aid income-driven plans, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period. 

Federal public service loan forgiveness

Learn more about federal public loan forgiveness on the Federal Student Aid website

Public sector employees may be eligible to have Federal Direct Loans forgiven after 120 monthly payments.

  • You must be employed full time in public service during the 120-month period and at the time of forgiveness.
  • Eligible employers include the federal, state, local government and those that are tax-exempt under section 501(c)(3) of the IRS code.
  • Qualifying payments must be made under an income-driven repayment plan.
  • The U.S. Department of Education has a form for borrowers to use to collect certification from the employer.  

Federal Perkins loan cancellation and discharge

Federal Perkins loans may be canceled or discharged for borrowers who meet certain conditions. More information is available on the Federal Student Aid website.

Note: If you consolidate your Perkins Loans, you will not be eligible for these benefits.

Only the school that grants the Federal Perkins Loan can determine if the borrower is entitled to have any portion of the loan canceled. If you borrowed a Federal Perkins Loan while enrolled at Wayne State University, questions concerning cancellation should be directed to the Office of Student Accounts Receivables, 313-577-3656.

Forms to request Perkins deferment or forbearance

Employer programs

Some federal agencies and private employers may also offer loan repayment programs as a recruiting tool.