Do Stafford loans have to be paid back?

Do You Pay Back Direct Stafford Loans? Yes, Direct Stafford Loans are loans that need to be paid back. The type of loan you have determines when you need to start paying it. Subsidized Stafford Loans: the government pays the interest while you are in school, during grace periods, and during any deferment periods.

What is the repayment period for Stafford loans?

You have six months to begin repayment on Stafford loans after graduation, or after you leave school or drop below half-time enrollment. Older Stafford Loans may have a longer grace period. Interest will not accrue while you are in school, and during the grace period for subsidized Stafford loans.

Can you pay Stafford loans in school?

While you don’t have to make payments on your loans while you’re in school, you have the option to pay down your student loans including paying down interest on any unsubsidized loans, which will save you money in the long run. To see if you have student loans with other servicers, log in to nslds.ed.gov.

Are Stafford loans forgiven after 25 years?

After 25 years, any remaining debt will be discharged (forgiven). A new public service loan forgiveness program will discharge the remaining debt after 10 years of full-time employment in public service.

What are the repayment terms for a Stafford Loan?

An Income-Driven Repayment Comparison chart is provided at the NCHER website. Depending on the amount borrowed, eligible borrowers can lengthen their repayment terms to a maximum of 25 years. Borrowers have a choice of either standard or graduated payment plans.

Where can I find information about student loan repayment?

Specifics about Direct Loan repayment options – such as the Income-Contingent and Pay as You Earn plans – can also be found at the Federal Student Aid website. Student loans offer multiple payment options based on the borrower’s financial situation.

What to do if you can’t pay your Stafford Loan?

If you are unable to make your monthly payments, contact your lender or loan holder immediately to avoid default by considering alternative repayment options. In addition to loan forgiveness, deferment or forbearance may be options, depending upon your circumstances.

What are the repayment plans for federal student loans?

Federal student loan repayment plans include the Standard, Extended, Graduated, Income-Based, Pay As You Earn, REPAYE, Income-Contingent, and Income-Sensitive plans. Repayment Plans | Federal Student Aid Skip to main content You are here HomeManage LoansAbout Loan RepaymentRepayment Plans