When you graduate, withdraw, or are enrolled below half-time (as defined by your program), your in-school status ends and your grace period (if applicable) begins. Loan repayment starts when your grace period ends.
- Federal Perkins Loans have a grace period of nine months before repayment begins.
- Federal Stafford Loans have a grace period of six months before repayment begins. (If you have Stafford Loans from a prior enrollment that were in repayment before you returned to school at NU, you will resume making payments for these loans as soon as your in-school deferment ends).
- Federal GradPLUS Loans issued after July 1st, 2008 have a six month post-enrollment deferment period to coordinate with the Stafford Loan grace period. Contact your loan servicer(s) regarding GradPLUS Loans issued before July 1st, 2008 to request a deferment.
- Federal Consolidation Loans have no grace period and will begin immediate repayment.
- Private Loans: Contact your lender/servicer(s) to determine when your first payment is due.
Who do I make my loan payments to?
You make your loan payments to your lender/servicer. Contact your loan servicer(s) to discuss your repayment options, due dates, payment methods, interest accrual, deferments, forbearance, etc.
Source: Federal Student Aid
How do I choose a repayment plan?
Your loan servicer(s) will contact you (before your first payment is due) with information regarding the repayment plan options for your Federal Stafford, GradPLUS & Direct Consolidation Loans. The repayment plan you select will depend on your individual circumstances, goals and preferences.
You may choose to pay off your debt as quickly as possible to reduce the total amount of interest; or more slowly to maximize your ability to save and/or invest for the future. You may prefer the flexibility of a lower monthly payment with the option of making additional payments targeting your higher interest rate loans.
Use the federal repayment estimator to compare your monthly payments under the various repayment plans. This calculator will access all your federal loan data from the National Student Loan Data System and create a chart showing your starting and ending payments, the total amount of interest you will pay over the life of the loan, and possible amounts forgiven under the income driven plans.
- Standard Repayment Plan: Fixed payments, 10 year repayment term; higher monthly payment = less paid in total interest.
- Graduated Repayment Plan: Lower initial payments with biennial increases, 10 year repayment term = later monthly payments may be significantly high, more paid in total interest.
- Extended Repayment Plan: Can be fixed or graduated, repayment term up to 25 years; lower monthly payments over extended term = significantly more paid in total interest.
- Income-Driven Plans: Repayment options based on your income and family size; options vary, contact your servicer for eligibility details and certification instructions. Learn more about this plan.
Source: Federal Student Aid
Be sure to ask your lender or servicer about signing up for auto debit payments. You can have your bank automatically send your monthly loan payment from your checking or savings account to the lender or servicer. Not only will it help ensure you don’t miss any payments, but most lenders offer a discount to borrowers who sign-up for this feature.