Federal student loans are supported by the Department of Education, including subsidized, unsubsidized, and PLUS loans. Perkins loans are need-based and subsidized, covering interest while you’re in school.

Federal student loans typically enter default after 270 days without payment, while private loans may default after around 120 days. Declaring bankruptcy can also result in default for private student loans. Falling behind on payments can harm your credit score, making it more challenging to manage future debt. If you’re struggling with payments, reach out to your servicer as soon as possible.

Loan forgiveness is a program that allows borrowers to have a portion or all of their student loans canceled if they meet specific requirements. Federal loan forgiveness options include Public Service Loan Forgiveness (PSLF), which is available to those working in qualified public service jobs, and Teacher Loan Forgiveness, among others. Generally, loan forgiveness requires that borrowers make a set number of qualifying payments while working in eligible fields or under qualifying repayment plans. Private student loans usually do not offer forgiveness options, so it’s important to check the terms of your loans and explore federal forgiveness programs if eligible.

PSLF offers federal loan forgiveness for borrowers employed in public service for a set period.

Consolidation combines multiple loans into one, simplifying repayment but possibly extending the term and total interest paid.

Forbearance temporarily suspends or reduces loan payments for those experiencing financial hardship. Federal loans can grant up to 12 months of forbearance, while options for private loans differ by lender.

Deferment provides a temporary break from loan payments, often granted for specific reasons, like active military duty or re-enrollment in school. For subsidized federal loans, no interest accrues during deferment. However, for unsubsidized loans, interest still accumulates. Not all private lenders offer deferment, so check with yours.

With this plan, initial payments are low and gradually increase every two years. It’s ideal for borrowers who expect their income to grow over time.

This is a fixed monthly payment plan with a 10-year term, unless the borrower arranges another schedule.

Certain lenders allow the co-signer to be removed from the loan after the primary borrower consistently makes on-time payments and meets specific credit requirements. If you’re interested in having your co-signer released, contact your loan servicer to check eligibility and understand the necessary steps.

This federal program adjusts monthly payments based on income and family size, with possible loan forgiveness after 20-25 years or 10 years for public service work.

These plans cap monthly payments based on discretionary income and may lead to loan forgiveness after a qualifying period.

SCRA caps interest rates on loans taken before active military duty at 6% and applies to both federal and private loans.

Servicers manage loan payments, inquiries, and maintenance, helping prevent defaults by offering various repayment options.

These are offered by banks and other lenders, with terms that are often less flexible than federal loans.

These federal loans do not accrue interest while the borrower is in school or during deferment periods.

A need-based federal loan that accrues no interest while the borrower is in school.

A co-signer is someone who agrees to take on the responsibility of repaying a loan if the primary borrower cannot. Private lenders may require a co-signer, particularly if it could help the borrower secure a lower interest rate due to the co-signer’s strong credit history. However, it’s essential for both parties to understand the potential financial risks and obligations involved in co-signing. Co-signers share equal responsibility for repayment, meaning that if the borrower misses a payment or is late, it will affect both parties’ credit records. In cases of delinquency, the lender or collection agencies may seek repayment from the co-signer.

PAYE caps federal student loan payments at a percentage of discretionary income for qualifying borrowers with newer loans.

The Free Application for Federal Student Aid (FAFSA®) is required for all federal student loans and is often used to determine eligibility for various forms of financial aid.

This plan offers reduced monthly payments over an extended period (up to 25 years), although it increases the total interest paid over time.

This includes all expenses related to your education, such as tuition, fees, housing, food, books, and other miscellaneous costs.

These federal loans support graduate students or parents of dependent undergrads with educational expenses.

This program provides education benefits for veterans and active service members, covering tuition, living expenses, and books.

Grants are a type of financial aid that doesn’t require repayment.

Federal loan balances can be checked on NSLDS, while private loan balances must be obtained from each servicer.

In ISAs, students receive funds for education costs in exchange for a commitment to pay a percentage of their income for a defined period.

NSLDS is a centralized database for federal student loans, allowing borrowers to track their balances and aid information.

A type of federal loan that is either subsidized or unsubsidized.

These plans, often short-term, break tuition costs into equal monthly payments.

The Federal Work-Study program provides part-time jobs to students in need, helping them cover educational expenses.

This loan type is provided directly by the U.S. Department of Education.

Interest accrues on unsubsidized loans while the borrower is in school, unlike subsidized loans.

Federal student loans may be discharged if the borrower becomes permanently disabled or passes away. Private loans vary by lender, with some offering provisions for discharge in these circumstances.