Category: Student Loans

If you want to know how to contact Edfinancial customer service, this complete guide will teach you everything you need to know.

What is Edfinancial? Edfinancial Services is a student loan servicer based in Knoxville, Tennessee with more than 25 years of experience. Edfinancial Services helps student loan borrowers manage the repayment of their federal student loans and private student loans.

Here’s what you should know about Edfinancial Services to maximize your customer service experience. In this guide, we will discuss:

• Is Edfinancial Services my student loan servicer?
• Edfinancial Services student loan repayment options
• How to make student loan payments to Edfinancial Services
• How to contact Edfinancial Services customer service
• How to file a complaint against Edfinancial Services

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Is Edfinancial Services my student loan servicer?

Edfinancial Services is a student loan servicer, which is responsible for collecting and managing your student loan service payments. If you have federal student loans, the U.S. Department of Education assigns you a student loan servicer. This means that you can’t choose your student loan servicer, unless you decide to refinance your student loans. If you think Edfinancial Services may be your student loan servicer, or if you’re not sure who’s your student loan servicer, then you can verify your student loans with these simple steps.

• Log into the National Student Loan Data System (NSLDS).

The NSLDS database includes all information about your student loans, including balances, history and student loan servicers. You can login with your Federal Student Aid (FSA) ID.

• Check your credit report

Your credit report will also tell you whether Edfinancial Services is your student loan servicer. You can order a free credit report for all major credit bureaus from AnnualCreditReport.com.

• Contact Edfinancial Services

You can contact Edfinancial Services directly to verify if Edfinancial Services if your student loan servicer. The phone number for Edfinancial Services is 1-855-337-6884.

Edfinancial Services student loan repayment options

Edfinancial Services offers several student loan repayment options:

Standard Repayment Plan: A standard repayment plan lasts up to 10 years and the monthly installment payment remains the same throughout the repayment period.

Graduated Repayment Plan: A graduated repayment plan varies throughout the repayment period. A graduated repayment plan starts with smaller monthly payments and increases over time. For a limited time, the monthly payment is typically interest only and smaller than the standard repayment plan.

Income-Sensitive Repayment Plan: An income-sensitive repayment plan is based on monthly gross income and your amount of student loan debt. The monthly loan payment is based on a fixed percentage of gross monthly income, between 4% and 25%.

Income-Based Repayment (IBR): Income-Based Repayment (IBR) is an example in an income-driven repayment plan, which lowers your monthly payment based on your discretionary income. With an income-driven payment, your monthly payment may be as low as $0.

25-Year Extended Repayment Plan: The 25-Year Extended Repayment Planlowers your monthly payment and extends the repayment plan from 10 years to 25 years.To qualify, you must have a current loan balance of at least $30,000 and your student loans were disbursed after October 7, 1998.

Student loan borrowers with federal student loans also have access to income-driven repayment plans, student loan forgiveness, forbearance and deferment.

How to make student loan payments to Edfinancial Services

Edfinancial Services offers several ways to pay off student loans. You can sign up for autopay and have your monthly student loan payments directly debited from your bank account. When you sign up for autopay, you may receive a reduction in your student loan interest rate. You can also pay online on the Edfinancial Services website. You can use your Edfinancial Services student loans login. When you register on the Edfinancial Services website, you will create user ID and password. To make a payment, you can sign in, click “Payments” and enter your payment information.

With Edfinancial Services, you can pay online, by debit card and by U.S. mail.

How to contact Edfinancial Services customer service

There are various ways to contact Edfinancial Services customer service:

Edfinancial Services Phone Number: 1-855-337-6884 (Direct Loans); 1-800-337-6884 (FFELP and Private Loans); Toll Free: 1-800-337-6884 (Military Servicemembers)

Edfinancial Services Hours of Operation: Monday – Friday from 8:00 a.m. to 11:00 p.m. eastern and Saturday from 10:00 a.m. to 2:00 p.m. eastern

Edfinancial Services Website: edfinancial.com

Edfinancial Services Email: You can email Edfinancial Services through the Email Us feature in the Contact Us on the Edfinancial Services website.

Edfinancial Services Fax Number: 1-800-887-6130

Edfinancial Services Chat: edfinancial.com

Edfinancial Services Customer Login: https://www.edfinancial.com/

Edfinancial Services Upload Documents: You can upload documents to your Edfinancial Services online account.

Where to Send Payments To Edfinancial Services:

Student Loan Payments – Direct Loans:

Edfinancial Services

P.O. Box 36008

Knoxville, TN 37930-6008

Student Loan Payments – FFELP and Private Loans:

Edfinancial Services

P.O. Box 36014

Knoxville, TN 37930-6014

How to file a complaint against Edfinancial Services

If you want to complain about Edfinancial Services customer service or file a complaint against Edfinancial Services as your student loan servicer, you have several options. First, you can contact the Edfinancial Services student loan customer service by calling 1-855-337-6884.

You can also file a complaint against Edfinancial Services with:

• Consumer Financial Protection Bureau
• Your state consumer protection office
• Federal Student Aid
• Your state attorney general
• Your congressional representative

You should maintain written communication between you and Edfinancial Services. This may include your monthly statements, records of communication with a Edfinancial Services customer service representative, emails and other correspondence.

You may also contact the U.S. Department of Education Ombudsman:

Phone: 1- 877-557-2575

Mailing Address:

U.S. Department of Education

Federal Student Aid Ombudsman Group

P.O. Box 1843

Monticello, KY 42633

The Federal Student Aid (FSA) Ombudsman Information Checklist is helpful to complete before contacting the Federal Student Aid Ombudsman.

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A Pell Grant is a form of financial aid that helps low-income students pay for college. As you consider the cost of higher education, a Pell Grant can be one of the best types of financial aid. This guide will teach you everything you need to know about Pell Grants.

In this guide, we will discuss:

• What is a Pell Grant?
• How do I qualify for Pell Grants?
• How to apply for Pell Grants
• How to get student loan forgiveness for Pell Grants
• How much money is a Pell Grant?
• Do I have to pay back a Pell Grant?

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What is a Pell Grant?

Pell Grants are a type of federal financial aid that are available only to undergraduate students. Unlike student loans, Pell Grants don’t have to be repaid. The U.S. Department of Education awards Pell Grants to low-income students to help pay for college costs. Students can use Pell Grants for tuition, fees, room and board, and other educational costs. However, Pell Grants are considered non-taxable income. Pell Grants are named for U.S. Sen. Claiborne Pell of Rhode Island, who sponsored legislation in 1972 to create Pell Grants.

How do I qualify for Pell Grants?

To qualify for Pell Grants, you must demonstrate exceptional financial need. Why? Pell Grants are targeted for students with low income. You can qualify for a Pell Grant by completing the Free Application for Federal Student Aid (FAFSA). Importantly, Pell Grants are only available for undergraduate students who have not earned a bachelor’s or graduate degree. Unlike other types of financial aid, Pell Grants do not vary by institution. If a college or university offers federal financial aid, a student’s eligibility for Pell Grants doesn’t change across institutions.

There are several important rules to know for qualifying for Pell Grants:

Incarceration: If you are currently incarcerated in a federal or state prison, you are generally ineligible to get a Pell Grants. However, there are more than 100 programs that allows some prisoners to enroll in college courses.

Enrollment: To remain eligible for Pell Grants, you must maintain your enrollment status, continue to make academic progress, and not withdraw from courses.

Pell Grants Limitations: Pell Grants are available for up to six years or 12 academic semesters. You can monitor your Pell Grants awards through Federal Student Aid.

How to apply for Pell Grants

To apply for a Pell Grant:

• Complete the free FAFSA
• Colleges and universities will use the data you provide in the FAFSA to determine your eligibility and how much money you receive.
• To remain eligible for Pell Grants, you must complete the FAFSA each year you attend college.
• The good news is that Pell Grants are available for every student who needs one.
• While it’s important to submit the FAFSA early, you can still get a Pell Grant if you submit the FAFSA late.
• If approved, your college or university disburse Pell Grant directly to you. You can then use your Pell Grant to pay education expenses such as tuition, room and board, and other fees.

How to get student loan forgiveness for Pell Grants

Once you have a Pell Grant, you may wonder how to get student loan forgiveness for Pell Grants. President Joe Biden announced historic student loan relief, including wide-scale student loan cancellation for most federal student loan borrowers.

Under Biden’s plan, student loan borrowers with Pell Grants can receive up to $20,000 of student loan cancellation. In comparison, student loan borrowers without a Pell Grant are eligible to get up to $10,000 of student loan forgiveness.

How do you apply for student loan forgiveness if you have a Pell Grant? Student loan forgiveness for Pell Grants will be automatic for many borrowers. If you have a Pell Grant and submitted your income information to the U.S. Department of Education, student loan forgiveness will be automatic. If the U.S. Department of Education doesn’t have your income, student loan borrowers can apply for student loan forgiveness.

How much money is a Pell Grant?

The amount of your Pell Grant may vary based on your financial situation. When you complete the FAFSA, the federal government decides how much money your Pell Grant will be. The amount of a Pell Grant can change annually. For the 2022-2023 award year, the maximum Pell Grant award is $6,895.

There are several factors that influence how much money a Pell Grant can be. For example:

• your Expected Family Contribution (EFC);
• the cost of attendance;
• whether you’re a full-time or part-time student; and
• whether you will attend school for a full academic year.

You can logon to Federal Student Aid to learn the amount of your Pell Grant.

Do I have to pay back a Pell Grant?

If you receive a Pell Grant, you don’t have to pay it back. In contrast, student loans must be repaid. However, if you receive a Pell Grant for a full academic year but only attend school for one semester, you will have to pay back the unused portion of the Pell Grant.

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Many student loan borrowers have asked how to get Aidvantage student loan forgiveness. Aidvantage is a leading student loan servicer for more than 7 million student loan borrowers and $166 billion in student loans. Aidvantage, which is part of Maximus Education, is a student loan servicer that helps student loan borrowers repay federal student loans. Navient, one of the leading student loan servicers, transferred its federal student loan servicing contract with the U.S. Department of Education to Aidvantage.

Here’s what you should know about Aidvantage student loan forgiveness. In this guide, we will discuss:

• How to get Aidvantage student loan forgiveness
• Aidvantage student loan forgiveness options
• Biden student loan forgiveness: Aidvantage student loans
• How to contact Aidvantage customer service

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How to get Aidvantage student loan forgiveness

How do you get Aidvantage student loan forgiveness? If you have federal student loans with Aidvantage, there are many options to get student loan forgiveness. For example:

• Income-Driven Repayment
• Public Service Loan Forgiveness
• Borrower Defense To Repayment
• Total and Permanent Disability
• Teacher Loan Forgiveness

These five federal student loan forgiveness programs are available to student loan borrowers with federal student loans. Each program has its own requirements and offers either partial student loan forgiveness or total student loan cancellation. Make sure you review all the requirements for each program. For example, if you have FFELP Loans or Perkins Loans, you may need to do a Direct Loan Consolidation before you can qualify for student loan forgiveness.

Aidvantage student loan forgiveness options

If you have federal student loans and Aidvantage is your student loan servicer, there are several options to get student loan forgiveness.

Income-Driven Repayment

There are several income-driven repayment plans, including Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE) and Income-Contingent Repayment (ICR).

After 20 years (undergraduate student loans) or 25 years (graduate student loans) of monthly student loan payments, student loan borrowers can qualify for student loan forgiveness on their remaining federal student loan balance. President Joe Biden proposed a new student loan forgiveness plan, which would include lower monthly student loan payments and earlier student loan forgiveness.

Apply for an income-driven repayment plan: To enroll in an income-driven repayment plan, contact Aidvantage or your student loan servicer.

Public Service Loan Forgiveness

Public Service Loan Forgiveness is a federal program that helps student loan borrowers who work for a qualified non-profit or public service employer get total federal student loan forgiveness. Borrowers must meet several requirements, including enrolling in an income-driven repayment plan and making 120 monthly student loan payments.

Apply for public service loan forgiveness: To apply for public service loan forgiveness, contact Aidvantage, your student loan servicer or the U.S. Department of Education.

Borrower Defense To Repayment

Borrower defense to repayment is an option for student loan forgiveness for millions of student loan borrowers. If your college or university closed or misled you, and you have Aidvantage student loans, you could qualify for partial student loan forgiveness or total student loan forgiveness.

Apply for borrower defense to repayment: To apply for borrower defense to repayment, you can apply directly through the U.S. Department of Education.

Total and Permanent Disability

If you have a total and permanent disability, and you have Aidvantage student loans, the federal government can forgive your student loans.

Apply for total and permanent disability: To apply for total and permanent disability, you can apply directly through the U.S. Department of Education.

Teacher Loan Forgiveness

Teacher Loan Forgiveness is a program for student loan forgiveness of federal student loans. If you have Aidvantage student loans and want to get student loan forgiveness, you could be eligible if you meet several requirements. For example, you could earn up to $17,500 of student loan forgiveness if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency.

Apply for teacher loan forgiveness: To apply for Teacher Loan Forgiveness, you can apply directly through the U.S. Department of Education.

Biden student loan forgiveness: Aidvantage student loans

President Biden announced historic student loan relief for millions of student loan borrowers. Biden’s plan included both wide-scale student loan forgiveness and a final extension of the student loan payment pause. If you have Aidvantage student loans, here’s how to qualify for $10,000 of student loan forgiveness:

1. Federal student loans: you must have a federal student loan that is owned by the federal government. For example, eligible federal student loans include Direct Loans such as Direct Subsidized Loans, Direct Unsubsidized Loans and Direct Consolidation Loans. Importantly, the U.S. Department of Education doesn’t own all federal student loans. For example, many FFELP Loans and Perkins Loans are owned by third-party investors as well as colleges and universities, respectively.
2. Income Requirement: You must have earned up to $125,000 annually during the Covid-19 pandemic. Your family income must be less than $250,000.

If you received a Pell Grant to attend college, then you could be eligible to receive up to $20,000 in student loan forgiveness.

How to contact Aidvantage customer service

There are various ways to contact Aidvantage customer service to get student loan forgiveness. If Aidvantage is your student loan servicer, you can contact Aidvantage to learn more about options for student loan forgiveness.

Aidvantage Phone Number: 1-800-722-1300

Aidvantage Hours of Operation: Monday – Thursday from 8:00 a.m. to 9 p.m. eastern and Friday from 8:00 a.m. to 8:00 p.m. eastern

Aidvantage Website: Aidvantage.com

Aidvantage Email: You can email Aidvantage through the Email Us feature in the Help Center on the Aidvantage website.

Aidvantage Fax Number: 1-866-266-0178

Aidvantage Customer Login: https://www.Aidvantage.com/

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Aidvantage is a leading student loan servicer for more than 7 million student loan borrowers and $166 billion in student loans. Aidvantage is a federal student loan servicing unit of Maximus Education that helps student loan borrowers manage the repayment of their federal student loans. Navient transferred its federal student loan servicing of federal student loans for the U.S. Department of Education to Aidvantage.

Here’s what you should know about Aidvantage to maximize your customer service experience, if Aidvantage is your student loan servicer. In this guide, we will discuss:

• Is Aidvantage my student loan servicer?
• Aidvantage student loan repayment options
• How to make student loan payments to Aidvantage
• How to contact Aidvantage customer service
• How to file a complaint against Aidvantage

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Is Aidvantage my student loan servicer?

Aidvantage is a student loan servicer, which is responsible for collecting and managing your student loan service payments. If you have federal student loans, the U.S. Department of Education assigns you a student loan servicer. This means that you can’t choose your student loan servicer, unless you decide to refinance your student loans. If you think Aidvantage may be your student loan servicer, or if you’re not sure who’s your student loan servicer, then you can verify your student loans with these simple steps.

• Log into the National Student Loan Data System (NSLDS): The NSLDS database includes all information about your student loans, including balances, history and student loan servicers. You can login with your Federal Student Aid (FSA) ID.
• Check your credit report: Your credit report will also tell you whether Aidvantage is your student loan servicer. You can order a free credit report for all major credit bureaus from AnnualCreditReport.com.
• Contact Aidvantage: You can contact Aidvantage directly to verify if Aidvantage if your student loan servicer. The phone number for Aidvantage is 1-800-722-1300.

Student loan repayment options

Aidvantage offers several student loan repayment options:

• Standard Repayment Plan: A standard repayment plan lasts up to 10 years and the monthly installment payment remains the same throughout the repayment period.
• Graduated Repayment Plan: A graduated repayment plan varies throughout the repayment period. A graduated repayment plan starts with smaller monthly payments and increases over time. For a limited time, the monthly payment is typically interest only and smaller than the standard repayment plan.
• Income-Sensitive Repayment Plan: An income-sensitive repayment plan is based on monthly gross income and your amount of student loan debt. The monthly loan payment is based on a fixed percentage of gross monthly income, between 4% and 25%.
• Income-Based Repayment (IBR): Income-Based Repayment (IBR) is an example in an income-driven repayment plan, which lowers your monthly payment based on your discretionary income. With an income-driven payment, your monthly payment may be as low as $0.
• 25-Year Extended Repayment Plan: The 25-Year Extended Repayment Planlowers your monthly payment and extends the repayment plan from 10 years to 25 years.To qualify, you must have a current loan balance of at least $30,000 and your student loans were disbursed after October 7, 1998.

Student loan borrowers with federal student loans also have access to income-driven repayment plans, student loan forgiveness, forbearance and deferment.

How to make student loan payments

Aidvantage offers several ways to pay off student loans. You can sign up for autopay and have your monthly student loan payments directly debited from your bank account. When you sign up for autopay, you may receive a reduction in your student loan interest rate. You can also pay online on the Aidvantage website. You can use your Aidvantage student loans login. When you register on the Aidvantage website, you will create user ID and password. To make a payment, you can sign in, click “Payments” and enter your payment information.

With Aidvantage, you can pay online, by debit card and by U.S. mail.

How to contact Aidvantage customer service

There are various ways to contact Aidvantage customer service:

Aidvantage Phone Number: 1-800-722-1300

Aidvantage Hours of Operation: Monday – Thursday from 8:00 a.m. to 9 p.m. eastern and Friday from 8:00 a.m. to 8:00 p.m. eastern

Aidvantage Website: Aidvantage.com

Aidvantage Email: You can email Aidvantage through the Email Us feature in the Help Center on the Aidvantage website.

Aidvantage Fax Number: 1-866-266-0178

Aidvantage Customer Login: https://www.Aidvantage.com/

Aidvantage Upload Documents: You can upload documents to your Aidvantage online account.

Where to Send Payments:

Student Loan Payments:

Aidvantage – U.S. Department of Education Loan Servicing

P.O. Box 4450

Portland, OR 97208-4450

General Correspondence:

Aidvantage – U.S. Department of Education Loan Servicing

P.O. Box 9635

Wilkes-Barre, PA 18773-9635

How to file a complaint

If you want to complain about Aidvantage customer service or file a complaint against Aidvantage as your student loan servicer, you have several options. First, you can file a complaint with Aidvantage’s student loan ombudsman. You can contact the Aidvantage student loan ombudsman by calling 1-800-722-1300.

You can mail a complaint to:

Aidvantage

Attention: Student Loan Ombudsman

P.O. Box 9635

Wilkes-Barre, PA 18773-9635

You can also file a complaint against Aidvantage with:

• Consumer Financial Protection Bureau
• Your state consumer protection office
• Federal Student Aid
• Your state attorney general
• Your congressional representative

You should maintain written communication between you and Aidvantage. This may include your monthly statements, records of communication with a Aidvantage customer service representative, emails and other correspondence.

You may also contact the U.S. Department of Education Ombudsman:

Phone: 1- 877-557-2575

Mailing Address:

U.S. Department of Education

Federal Student Aid Ombudsman Group

P.O. Box 1843

Monticello, KY 42633

The Federal Student Aid (FSA) Ombudsman Information Checklist is helpful to complete before contacting the Federal Student Aid Ombudsman.

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If you’re heading to college or graduate school, then you’ll likely need to know how to apply for student loans. It’s essential to understand all your options, including for both federal student loans and private student loans. Here’s the complete guide for how to apply for student loans.

In this complete guide, we discuss:

• How to apply for federal student loans
• What are the types of federal student loans?
• How much student loan can I get?
• Are private student loans a good idea?
• How to apply for private student loans

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How to Apply for Federal Student Loans

Federal student loans are offered by the federal government and should be your first choice for student loans. Federal student loans offer borrower protections that some private loans do not. For example, if you can’t afford your monthly student loan payments, you can choose an income-driven repayment plan. If you lose your job or return to school, you can temporarily pause your payments through forbearance or deferment.

Here is a step-by-step guide for how to apply for federal student loans:

1. Create a new Federal Student Aid (FSA) ID.

You can apply for an FSA ID on the Federal Student Aid website. An FSA ID is a username and password that gives you access to Federal Student Aid’s online system. With an FSA ID, you can sign documents electronically and access your student loan report.

2. Complete the Free Application for Federal Student Aid (FAFSA)

The Free Application for Federal Student Aid (FAFSA) is the application to apply for federal student aid. The FAFSA has no fee and is released each October. You should complete the FAFSA as soon as possible after January 1. The FAFSA is used by colleges and universities to determine your eligibility for federal financial aid, state financial aid and school financial aid. You must complete a FAFSA the year before you first attend school and every year that you attend school. Importantly, if you’re a dependent college student, both you and your parent must sign the FAFSA.

To complete the FAFSA, you will need certain personal and financial information, which may include the following:

• Your parents’ Social Security Numbers
• Your parents’ date of birth
• Your parents adjusted gross income for the last two years prior to attendance
• Your parents’ tax returns for the last two years prior to attendance
• Your tax returns (if applicable) for the last two years prior to attendance
• Your parents’ net worth
• Your net worth (if applicable)
• Any scholarships or grants you have received
• Whether your or your family receive Medicaid, Supplemental Social Security, Temporary Assistance for Needy Families (TANF), and related programs.

3. Review your Student Aid Report (SAR)

Once you file your FAFSA, you will receive a Student Aid Report (SAR). You should review the Student Aid Report to ensure that it is accurate. You can also include additional colleges that you would like to receive your Student Aid Report. The Expected Family Contribution (EFC) portion of your Student Aid Repot will be shared with financial aid offices at the schools to which you applied or attending. Your Expected Family Contribution is how much your family will be expected to contribute toward the cost of your school. The financial aid office will determine your financial need based on your Expected Family Contribution. The amount of financial need for which you qualify may change by college or university.

4. Compare financial aid award letters

Each college or university will send you a financial aid award letter. Types of financial aid may include scholarships, grants, work study and student loans. Not every school can meet all your financial aid needs. That’s why it’s important to compare financial aid award letters. Financial aid is not the only reason to select a school, but it may be an important factor for you. Any financial shortfall between the total cost to attend a school and your financial aid package needs to be supplemented with other financial sources. You can apply for scholarships, borrow private student loans or find other sources to pay for school. You can also appeal your financial aid award letter by contacting your school.

5. Sign your promissory note

Your school likely will include federal student loans in your financial aid package. To borrow federal student loans, you will sign a master promissory note, which is a legally-binding contract regarding the terms and provisions of your student loans and your promise to repay them.

What Are the Types of Federal Student Loans?

Your school likely will include federal student loans in your financial aid package. To borrow federal student loans, you will sign a master promissory note, which is a legally-binding contract regarding the terms and provisions of your student loans and your promise to repay them.

Direct Subsidized Loans

Direct Subsidized Loans are federal student loans for undergraduates who have a demonstrated financial need. While you are in school, you will not owe any interest on these federal student loans. The federal government pays the interest for you.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to both undergraduate and graduate students. Unlike Direct Subsidized Loans, interest accrues on these student loans while you’re in school and you are responsible to pay for this interest. You don’t have to pay the interest while you’re in school, but the interest will be capitalized at the end of your six-month grace period after graduation. Capitalized means that your total interest will be added to your student loan balance.

Grad PLUS Loans

Grad PLUS Loans are federal student loans for graduate and professional students. Unlike subsidized and subsidized student loans, there are no borrowing limits for Grad PLUS Loans. To borrow Grad PLUS Loans, you cannot have an adverse credit history.

Parent PLUS Loans

Parent PLUS Loans are federal student loans that parents can borrow for a dependent child to pay for undergraduate education. There are no borrowing limits for Parent PLUS Loans.

How Much Student Loan Can I Get?

Many borrowers ask: How much can I borrow in federal student loans?” With federal student loans, there are maximum amounts that you can borrow. With private student loans, borrowing limits are set by the lender. Typically, you cannot borrow more than the total cost of attendance. Cost of attendance includes tuition, fees, room and board, books and other materials for school. The amount of federal student loans that you can borrow depends on three main factors:

1. The type of federal student loan
2. Your year in school
3. Whether you are considered a dependent or independent student

In addition to annual borrowing limits, there are also total borrowing limits for the duration of your higher education.

Subsidized and Unsubsidized student loans

Direct Subsidized Loans and Direct Unsubsidized Loans each have annual and total borrowing limits. Your total borrowing limit is the amount of federal student loans that you can borrow during your undergraduate and graduate school.

Subsidized vs. Unsubsidized Loans: Annual Loan Limits​

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Grad PLUS Loans

There are no limits to the amount of Grad PLUS Loans that you can borrow. The maximum amount typically is limited by the total cost of attendance. PLUS Loans have higher interest rates than Direct Subsidized Loans and Direct Subsidized Loans. Therefore, you should borrow the maximum amount of subsidized and unsubsidized student loans before you borrow PLUS Loans.

Parent PLUS Loans

Like Grad PLUS Loans, Parent PLUS Loans do not have borrowing limits. However, like PLUS Loans, Parent PLUS Loans are typically limited by the cost of attendance. Parent PLUS Loans typically have the highest interest rates. However, you can refinance Parent PLUS Loans to get a lower interest rate.

Are Private Student Loans a Good Idea?

Private student loans are student loans that are available from private lenders such as banks, credit unions and online lenders. Private student loans are not issued by the federal government so they different from federal student loans in some ways. For example, private student loans do not offer income-driven repayment plans or student loan forgiveness options. Private student loans also require good credit. Unlike federal student loans, lenders require either a good credit score or, if you have a bad credit score or no credit history, you can applya cosigner with a good credit score.

Private student loans have several benefits. Typically, private student loans have lower interest rates than federal student loans. This can help save you money and pay off student loans faster. Unlike federal student loans, which only offer fixed interest rate, you can choose a private student loans with either a fixed interest rate or a variable interest rate. Many lenders now allow you to pause your private student loan payments if you lose your job or face financial hardship. Typically, it’s best to maximize funding from other sources such as scholarships, grants and federal student loans before you borrow private student loans. However, many borrowers pay for school with private student loans after any money received for financial aid.

How to Apply for Private Student Loans

You can apply for private student loans directly online. You can compare private student loan lenders, interest rates and loan terms to find the best private student loans for you.

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When you pay for school with federal student loans, the loans are either Direct Subsidized Loans or Direct Unsubsidized Loans. What’s the difference between Subsidized and Unsubsidized Student Loans?

Subsidized loans do not accrue interest while you’re in school, and the federal government pays any interest on your behalf. In contrast, unsubsidized loans accrue interest while you’re in school. Therefore, if you qualify, you can save more money with subsidized student loans than with unsubsidized loans.

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In this guide, we will discuss:

• What is a Direct Subsidized Loan?
• What is a Direct Unsubsidized Loan?
• What’s the difference between subsidized and unsubsidized loans?
• How much can you borrow for subsidized vs. unsubsidized loans?
• How interest accrues on subsidized and unsubsidized loans
• How to get subsidized and unsubsidized loans

What is a Direct Subsidized Loan?

Direct Subsidized Loans are federal student loans that do not accrue interest while you’re in school because the federal government pays the interest for you. Subsidized loan are available to undergraduate students with financial need. Your school determines the amount of subsidized loans that you can borrow based on your financial need.

For subsidized student loans, the U.S. Department of Education will pay the interest on a Direct Subsidized Loan:

• When you are enrolled in school at least half-time;
• For a “grace period” of six months after you leave school; and
• When you defer, or postpone, student loan payments

For example, let’s assume you borrow $10,000 of subsidized student loans during school. When you graduate, you will owe $10,000 of subsidized loans. This is because no interest is added to your loan balance while you’re in school and for six months after during your grace period. Once your grace period ends, you will start to make payments and will owe interest.

Direct Subsidized Loans: Advantages

• The U.S. Department of Education pays the interest on your loans so long as you’re enrolled half-time and have financial need.
• No payments are due until six months after graduation or after your leave school.
• The federal government pays your interest during forbearance and deferment.

Direct Subsidized Loans: Disadvantages

• You have to demonstrate financial need.
• Annual loan limits are lower compared to unsubsidized loans.
• You must be an undergraduate to qualify.

What is a Direct Unsubsidized Loan?

Direct Subsidized Loans are available to both college and graduate students, and interest accrues while you’re in school and during grace periods. You don’t have to demonstrate financial need, and your school determines how much you can borrow based on the cost of attendance and the amount of financial need that you receive.

If you choose not to pay the interest while you’re in school, during grace, forbearance or deferment periods, then your interest will be capitalized, meaning that your interest will be added to your principal balance.

Direct Unsubsidized Loans: Advantages

• Both undergraduate and graduate students can receive Direct Unsubsidized Loans.
• You don’t have to demonstrate financial need to qualify.
• You can borrow higher loan limits compared with Direct Subsidized Loans.

Direct Unsubsidized Loans: Disadvantages

• You have to pay interest during school, grace periods, and during forbearance and deferment.

What’s the difference between subsidized and unsubsidized loans?

Subsidized and unsubsidized loans are both student loans that are issued by the federal government. However, there are critical differences that could impact how you borrow for college and graduate school.

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Here are the primary differences between subsidized loans and unsubsidized loans:

How much can you borrow for subsidized vs. unsubsidized loans?

Your school will determine how much of subsidized and unsubsidized student loans that you can borrow each academic year.

Both subsidized and unsubsidized loans have annual loan limits and annual aggregate limits. The amount you can borrow each year may be limited by your year in school and whether you are considered dependent or independent for tax purposes.

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How interest accrues on subsidized and unsubsidized loans

Interest of your subsidized and unsubsidized loans accrues differently depending if you are in school, in a grace period, or in deferment.

Here is how interest accrues on subsidized and unsubsidized student loans:

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How to get subsidized and unsubsidized loans

The best way how to get subsidized and unsubsidized student loans is to complete the FAFSA, or the Free Application for Federal Student Aid. This is the form that the federal government, states, colleges and universities use to award financial aid.The FAFSA is free to complete and is required to borrow federal student loans, including subsidized and unsubsidized loans.

If you qualify, you want to borrow the maximum amount of subsidized loans before you borrow unsubsidized loans because the federal government will pay the interest for you while you’re in school, a grace period or deferment. Maximize your scholarships and grants as well. If you need additional funds to pay for school, private student loans are another option. If you don’t have a credit history, you can apply with a qualified cosigner.

A qualified cosigner with good to excellent credit and stable income may help you get approved for a private student loan and receive a lower interest rate. Private student loans are different from federal student loans, so make sure to compare lenders, interest rates and loan terms before borrowing. Often, private student loans have lower interest rates than federal student loans, including compared to PLUS Loans.

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Company Overview: Sallie Mae

Sallie is a leading student loan company that originates all types of student loans, including, but not limited to, undergraduate student loans, MBA student loans, dental school and medical school student loans, medical residency loans, dental residency loans, health professions graduate loans, bar study loans and general graduate school student loans. Founded in 1973, Sallie Mae is a publicly traded company.

How Sallie Mae Compares: Key Benefits For Student Loans

Here are some of the reasons that Sallie Mae borrowers love Sallie Mae MBA student loans:

• Loan Customization: Sallie Mae helps you customize your student loans to find an optimal loan term length, interest rate and repayment plan.
• Lower Rate With Cosigner: If you apply with a creditworthy cosigner, Sallie Mae may give you a lower interest rate compared to the interest rate you could get on your own.
• Deferment and Forbearance: Sallie Mae may allow borrowers to pause their student loan payments if you return to school at least part time. Sallie Mae may also let you pause your student loan payments through a forbearance in three-month increments for a total of 12 months due to economic hardship or illness.
• Repayment Flexibility: Sallie Mae offers multiple, flexible repayment plans so you can determine which student loan repayment plan is right for you.
• Cosigner Release:Sallie Mae offers cosigner release after 12 months of consecutive payments. That means if you have graduated and your credit is strong, your cosigner can be released from your student loans once you have made 12 months of consecutive student loan payments. Once your cosigner is released, you will be solely responsible for payment of your student loans.

Eligibility Criteria

To apply for Sallie Mae student loans, you need to meet the following eligibility criteria:

Requirements To Apply For Sallie Mae Student Loans

Minimum Age: At least age of majority in your state

Citizenship/Residency: U.S. citizen or permanent resident (applies to co-signer too, if any)

Education: Attend school at least half-time at a qualifying school

Loan approval may depend on a number of additional factors, including, but not limited to, your (or your cosigner’s) financial history, credit profile, and monthly income vs. expenses.

Sallie Mae Repayment Plans

Sallie Mae provides several flexible repayment plans for your student loans while you are in school:

1. Interest-Only Payment: Pay the interest only each month for 12 months after your grace period ends. This results in moderate in-school payment.
2. Flat Payment: Make $25 payments each month while in school to reduce your accrued interest. This yields the lowest in-school payment.
3. Deferred Payment: No in-school payments required, and you defer your student loan payment until six months after you leave school. You will pay more in interest over the life of your student loan. This yields no student loan payment while you are in school, but will result in the highest overall cost.

Next Steps: How To Apply To Sallie Mae

Sallie Mae has an excellent reputation in the student loan industry. The minimum credit score for Sallie Mae student loans is 640, although many borrowers have a credit score above 700. If you cannot get approved on your own, you can apply with a qualified, creditworthy cosigner. The good news is that most people who apply for Sallie Mae student loans apply with a cosigner, which can increase your likelihood of approval.

Next Steps: How To Apply To Sallie Mae

You can apply for a Sallie Mae student loan in 3 easy steps.

Step 1: Check your personalized student loan rate in just 2 minutes.

Step 2: Complete application and upload documents.

Step 3: Accept loan terms and get funded.

The good news is that you can check your personalized student loan rate online with Sallie Mae in 2 minutes. This way, you’ll know whether you can be approved for Sallie Mae student loans before you complete the full application. Therefore, Sallie Mae will provide you with a personalized student loan rate estimate. The pre-approval is only a soft credit pull so there is no impact to your credit.

If you have been pre-approved, the online application only takes 10-15 minutes to complete.

Applying is super easy – get your personalized rate in 2 minutes

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The latest student loan debt statistics for 2022 have reached epic proportions. Student loan debt is now the second highest consumer debt category – behind only mortgage debt – and higher than both credit cards and auto loans.

According to Mentor, there are more than 45 million borrowers who collectively owe $1.7 trillion in student loan debt in the U.S. alone.

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Here are the latest student loan debt statistics for graduate school student loan debt:

• Dental School: $260,000
• Medical School: $180,000
• Pharmacy School: $160,000
• Veterinary School: $140,000
• Law School: $140,000

The latest student loan debt statistics for 2020 show how serious the student loan debt crisis has become – for borrowers across all demographics and age groups.If you are a student loan borrower, the following student loan debt statistics can help you make more informed decisions regarding student loan refinance, student loan consolidation, student loan repayment and student loan forgiveness.

Student Loan Statistics: Overview

Total Student Loan Debt: $1.56 trillion

Total U.S. Borrowers With Student Loan Debt: 44.2 million

Student Loan Delinquency Or Default Rate: 10.7% (90+ days delinquent)

Total Increase In Student Loan Debt In Most Recent Quarter: $29 billion

New Delinquent Balances (30+ days): $32.6 billion

New Delinquent Balances – Seriously Delinquent (90+ days): $31 billion

(Source: As of 1Q 2018, Federal Reserve & New York Federal Reserve)

States With The Most Student Loan Debt

Not surprisingly, states with larger populations have higher aggregate student loan debt. California, Florida, Texas and New York are among the four highest states for total student loan debt outstanding among resident borrowers.

California, Florida, Texas and New York represent more than 20% of all U.S. student loan borrowers.

High Student Loan Debt States & Low Student Loan Debt States

New Hampshire has the highest average student loan debt per student ($36,367) from the Class of 2016.

Utah has the lowest average student loan debt per student ($19,975) from the Class of 2016.

Student Loan Debt Per Capita In Select U.S. States

In the U.S., as of 2016, the average student loan debt per capita is $4,920. Pennsylvania, New York and Michigan have among the highest student loan debt per capita in the nation.

Arizona: $4,760

California: $4,160

Florida: $4,480

Michigan: $5,330

New York: $5,570

Ohio: $5,700

Pennsylvania: $5,690

Texas: $4,510

Distribution Of Student Loan Borrowers By Balance

As of 2018, more than 42 million student loan borrowers have student loan debt of $100,000 or less.

More than 2 million student loan borrowers have student loan debt greater than $100,000, with 415,000 of that total holding student loan debt greater than $200,000.

The largest concentration of student loan debt is $10,000 – $25,000, which accounts for 12.4 million student loan borrowers.

Total Student Loan Balances By Age Group

Over the past five years, student loan debt balances have grown across each age category.

On a percentage basis, the largest increase in student loan debt has come from a surprising age group: 60 to 69-year-olds, who have experienced an 71.5% increase in student loan debt. However, on a dollar basis, this age group represents a $35.6 billion increase over the same period, which is the lowest increase among all age groups.

On a dollar basis, the highest increase in student loan debt is among 30 to 39-year-olds, who as a group now hold over $461 billion in student loans. On a percentage basis, the amount of student loan debt held by 30-39 year-olds has increased 30.2% over the past five years.

Number Of Student Loan Borrowers By Age Group

The largest concentration of student loan borrowers is under 30-years-old, followed by the 30-39 age group.

Therefore, there are 29.1 million student loan borrowers under the age of 39, with this group representing approximately 65% of all student loan borrowers.

As of 2017, here is the breakdown of student loan borrowers by age.

< 30-years-old: 16.8 million

30-39: 12.3 million

40-49: 7.3 million

50-59: 5.2 million

60+: 3.2 million

Student Loan Debt Outstanding By Student Loan Program

Over 33 million student loan borrowers hold approximately $1.1 billion in Direct Loans. Another 14.5 million student loan borrowers hold $301 billion in Federal Family Education Loans (FFEL).

Direct Loans: $1,066.8 billion (33.3 million borrowers)

Federal Family Education Loans (FFEL): $301.1 billion (14.5 million borrowers)

Perkins Loans: $7.6 billion (2.5 million borrowers)

TOTAL: $1,375.5 billion

Student Loan Debt Outstanding By Student Loan Type

Stafford Subsidized: $272.2 billion (29.6 million borrowers)

Stafford Unsubsidized: $463.3 billion (28.4 million borrowers)

Stafford Combined: $735.5 billion (33.0 million unique borrowers)

Grad PLUS: $59.6 billion (1.2 million borrowers)

Parent PLUS: $83.7 billion (3.5 million borrowers)

Perkins: $7.6 billion (2.5 million borrowers)

Consolidation: $489.0 billion (12.0 million borrowers)

Student Loan Debt Statistics By Loan Status For Direct Loans

Approximately $600 billion in Direct Loans across 17.8 million student loan borrowers are in student loan repayment. Approximately 11 million student loan borrowers are in student loan deferment, student loan forbearance or student loan default.

Student Loans In School: $133.5 billion (7.4 million borrowers)

Student Loans In Repayment: $600.0 billion (17.8 million borrowers)

Student Loans In Deferment: $103.0 billion (3.3 million borrowers)

Student Loans in Forbearance: $108.3 billion borrowers (2.6 million borrowers)

Student Loans In Default: $88.4 billion (4.7 million borrowers)

Student Loans In Grace Period: $25.9 billion borrowers (1.2 million borrowers)

Student Loan Debt Statistics By Repayment Plan For Direct Loans

There are 12.8 million borrowers with $233.5 billion of student loan debt in the Level Student Loan Repayment Plan (student loan repayment in 10 years or less), which represents the largest concentration of borrowers in student loan repayment.

The second most concentrated group of borrowers is enrolled in Income-Based Repayment (IBR) at $192.0 billion and 3.6 million borrowers.

Level Repayment Plan  (< 10 years): $233.5 billion (12.8 million borrowers)

Level Repayment Plan (> 10 years): $79.1 billion (1.8 million borrowers)

Graduated Repayment Plan (< 10 years): $88.3 billion (3.3 million borrowers)

Graduated Repayment Plan (> 10 years): $14.3 billion (0.3 million borrowers)

Income-Contingent Repayment (ICR) Plan: $27.6 billion (0.6 million borrowers)

Income-Based Repayment (IBR) Plan: $192.0 billion (3.6 million borrowers)

Pay As You Earn (PAYE) Plan: $68.3 billion (1.2 million borrowers)

Revised Pay As You Earn (REPAYE) Plan: $108.8 billion (2.0 million borrowers)

Servicer Portfolio By Repayment Plan

As of December 31, 2017, AES/PHEAA (otherwise known as FedLoan Servicing) and Navient service the largest portfolios of student loans in repayment in the U.S. FedLoan Servicing is the largest servicer of federal direct and Federal Family Education Loans.

The most popular student loan repayment plan is the Level Repayment Plan, which means student loan repayment in less than 10 years, followed by REPAYE (Revised Pay As You Earn).

Other Important Student Loan Debt Statistics

In addition, there are several other startling statistics regarding the state of student loan debt:

• Nearly seven in 10 seniors (68%) who graduated from public and non-profit colleges in 2015 had student loan debt.
• In 2012, 1.3 million students graduated with student loan debt.
• In 2012, 66% graduated from public colleges, 75% graduated from private colleges and 88% graduated from for-profit colleges.
• Almost half (47%) of private loan borrowers in 2011-12 borrowed less than they could have in federal Stafford loans for college.
• While private loan volume peaked at $18.1 billion in 2007-2008, private loan volume is now $7.8 billion as of 2014-2015.
• 6% of all undergraduates – 1,373,000 students – borrowed private loans in 2011-12.
• Four out of five 2016 graduates with state loan debt attended schools in just four states: Texas, Minnesota, Massachusetts, andNew Jersey that awarded only 14% of bachelor’s degrees.
• Of the 100 colleges where graduates borrow most in private loans, 85 are nonprofit four-year colleges and 34 are located in Pennsylvania.
• At public colleges, average debt in 2012 was $25,550 (25% higher than in 2008, when the average was $20,450).
• At private nonprofit colleges, average debt in 2012 was $32,300 (15% higher than in 2008, when the average was $28,200).
• At for-profit colleges, average debt in 2012 was $39,950 (26% higher than in 2008, when the average was $31,800).
• About 20% of the Class of 2012’s student loans were private student loans.
• Graduates who receive Pell Grants are more likely to borrow more debt: 88% had student loans in 2012, with an average of $31,200 per borrower.
• Graduates who did not receive Pell Grants: 53% of those who never received a Pell Grant had debt, with an average of $26,450 per borrower — $4,750 less than the average debt for Pell recipients with debt.

(Source: The Institute for College Access and Success)

Student Loan Forgiveness

Student loan forgiveness comes in several forms. Two of the most popular types of student loan forgiveness are Public Service Loan Forgiveness and Teacher Student Loan Forgiveness.

As of December 31, 2017, there are 802,040 cumulative Public Service Loan Forgiveness borrowers.

Since 2012, 1,361,184 employment certification forms have been approved and 705,362 have been denied.

About 140,000 of student loan borrowers have applied for student loan forgiveness under the borrower defense to repaying rule since 2015.

(The above student loan debt statistics include data from The New York Federal Reserve Credit Panel/Equifax, The Institute For College Access and Success, National Student Loan Data System, Mark Kantrowitz, Federal Student Aid and FedLoan Servicing).For press inquiries regarding these student loan debt statistics, please contact us.

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If you have Parent PLUS Loans, or your parents have Parent PLUS Loans, here is everything you need to know about how to pay off Parent PLUS Loans. Parent PLUS Loans are federal student loans that you can borrow from the federal government to help pay for a dependent’s education. It’s essential to know all your options to pay off Parent PLUS Loans.

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In this complete guide to pay off Parent PLUS Loans, you will learn how to:

• Refinance Parent PLUS Loans
• Consolidate Parent PLUS Loans
• Lower your Parent PLUS Loan payments
• Get Parent PLUS Loan forgiveness

How To Refinance Parent PLUS Loans

Can you refinance Parent PLUS Loans? The answer is yes. Parent PLUS Loans typically have high interest rates, which can interfere with your retirement savings and become a financial burden. You can refinance Parent PLUS Loans to save money, lower your interest rate and pay off debt more quickly. There are two ways to refinance Parent PLUS Loans:

• Refinance Parent PLUS Loans in your name only
• Parent PLUS Loan refinancing in your child’s name

Refinance Parent PLUS Loans in your name only​

Refinancing Parent PLUS Loans in your name only is the standard way that borrowers refinance Parent PLUS Loans. When you refinance Parent PLUS Loans, the process is similar to how to refinance student loans. To qualify for Parent PLUS Loan refinancing, you will need good credit, stable and recurring monthly income, and a low debt-to-income ratio. Lenders want to ensure that you can afford your monthly living expenses, plus debt payments for mortgages, student loans and credit cards. When you refinance Parent PLUS Loans, a private lender pays off your existing Parent PLUS Loans, which means you no longer will have the benefits of a federal government loan.

The process to refinance Parent PLUS Loans is simple. You can compare Parent PLUS Loans refinance lenders and then check your new interest rate for free in about two minutes with no impact to your credit score. Then, you can apply online in about 10-15 minutes.

Parent PLUS Loan refinancing in your child’s name​

Can a Parent PLUS Loan be transferred to the student? Many Parent PLUS Loans borrowers ask whether they can transfer Parent PLUS Loans to their child. The short answer is no, you can’t directly transfer Parent PLUS Loans to a child. However, you can refinance Parent PLUS Loans in your child’s name with certain private lenders. To qualify, the student must qualify for student loan refinancing. That means your child must have good credit (at least 650 or higher), stable and recurring income, and a low debt-to-income ratio. Lenders want to ensure that your child can repay student loans, pay for living expenses, and pay other debt obligations such as credit card debt or a mortgage.

How To Consolidate Parent PLUS Loans

Many parents ask: Should I consolidate my Parent PLUS Loans? When you consolidate Parent PLUS Loans, you combine your existing Parent PLUS Loans into a single, Direct Consolidation Loan. You can even consolidate a single Parent PLUS Loan too. Parent PLUS Loan consolidation helps you to organize your existing Parent PLUS Loans into a single loan. When you consolidate Parent PLUS Loans, the repayment period is 10-30 years. While a longer repayment schedule may lower your monthly payment, you may pay more in total interest. The interest rate for a Direct Consolidation Loan is equal to a weighted average of your existing Parent PLUS Loans, rounded up to the nearest 1/8%. Therefore, Parent PLUS Loan consolidation doesn’t lower your interest rate.

How To Lower Your Parent PLUS Loan Payments

An income-driven repayment plan is one option to lower your Parent PLUS Loan payments. Income-driven repayment plans are federal repayment plans that cap your student loan payment at a percentage of your monthly income. Parent PLUS Loans are only eligible for Income-Contingent Repayment (ICR), which is one type of income-driven repayment plan.

Income-Contingent Repayment (ICR) lowers your monthly payment to the lesser of:

• 20% of your discretionary income; and
• The amount you would pay on a fixed, 12-year repayment schedule

Choose an Income-Contingent Repayment (ICR) plan if you are unable to afford the Standard Repayment Plan, which is 10 years. To qualify for ICR, first you must consolidate your Parent PLUS Loans to a Direct Consolidation Loan. You also may be liable for income taxes if you receive any loan forgiveness.

How To Get Parent PLUS Loan Forgiveness

Many parent borrowers ask: Are Parent PLUS Loans eligible for forgiveness? Other parents ask: How can I get my Parent PLUS Loan forgiven?

If you want to know how to get Parent PLUS Loan forgiveness, the best way is through Public Service Loan Forgiveness. The Public Service Loan Forgiveness program is a federal program that offers student loan forgiveness. To qualify, you must be a full-time employee of a public service or non-profit employer. To get Parent PLUS Loan forgiveness, the employment of the parent borrower is what matters; not your child’s employment. You also must make at least 120 monthly student loan payments.

It is important to understand all the requirements of the Public Service Loan Forgiveness program. To qualify, you must first consolidate your Parent PLUS Loans into a Direct Consolidation Loan. Then, you must make a majority of your loan payments while enrolled in an income-driven repayment plan.

Parent PLUS Loans: Important Questions

What is the best way to pay off Parent PLUS Loans?

The best way to pay off Parent PLUS Loans depends on your personal circumstances and financial situation. The Standard Repayment Plan takes 10 years to pay off Parent PLUS Loans and is the most straightforward.

If you want to lower the interest rate on your Parent PLUS Loans, then Parent PLUS Loan refinancing is your best strategy. You can lower your interest rate, save money and pay off Parent PLUS Loans faster.

If you are struggling to pay off your Parent PLUS Loan, then you consider an income-driven repayment plan such as Income-Contingent Repayment (ICR). While you can lower your monthly payment, this strategy may be more expensive because interest still accrues on your Parent PLUS Loan.

Can you pay off Parent PLUS Loans early?

Yes, you can pay off Parent PLUS Loans early. Parent PLUS Loans are federal student loans, which can be paid off any time with no prepayment penalty.You may choose to pay off Parent PLUS Loans early, or you may decide to use those funds to save more for retirement.

Can Parent PLUS Loans be forgiven?

Parent PLUS Loans can be forgiven. The best way to get Parent PLUS Loan forgiveness is through the Public Service Loan Forgiveness program. You can receive Parent PLUS Loan forgiveness if you meet all requirements, including 120 monthly payments, and work for an eligible employer.

Do you have to pay back Parent PLUS Loans?

Parent PLUS Loan repayment begins immediately. The good news is that you are able to apply for student loan deferment while your child is enrolled in school and for six months after graduation. That’s why it is important to have a Parent PLUS Loan repayment strategy in place so that you understand all your options.

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