In addition to looking for the answer to your question on this page, you should review the Loan Repayment section of the Federal Student Aid website and our Planning for Loan Repayment and Loan Repayment Options pages on this site to familiarize yourself with the terms and repayment options that are available to you.
There really is no one correct answer to any of these questions. As you will see, in most cases the answer will depend on your particular situation, so not only should you try to familiarize yourself with as much information about the process as possible, it is also always a good idea to check with the servicer of your loan about a specific question.
What is the difference between my lender and loan servicer?
The lender is the organization from which you borrowed your loans. Since 2010, all federal loans were through the Direct Loan Program and the lender is the federal government U.S. Department of Education. If you have older loans through FFELP, the lender was either a bank or other financial institution.
A servicer is a company that is assigned to manage the billing and other services related to repaying your federal student loans. You can visit studentaid.gov to find out who your servicer is for your federal student loans (Direct and FFELP) and their contact information.
Do I have to pay to apply for repayment plans or any other loan management options?
No. You do not have to pay for help with applying for repayment options, such as income-driven repayment plans, deferment, forbearance, PSLF, or federal loan consolidation. Your loan servicer provides help with these applications, and everything related to loan management and repayment free of charge. Please do not engage with any company that asks you to pay “enrollment,” “subscription,” or “maintenance” fess for these services.
What if I don't have a job or can't afford to make a payment?
If you are not working and your grace period has expired, or if you are temporarily unable to make a payment, contact your loan servicer to ask about deferment or forbearance options. If your monthly payment is more than you can afford, you should explore other repayment options that may lower your payment amount. Your loan servicer can review your situation and work with you to choose the option that best fits your needs.
Where do I send my payments?
Your payments should be sent to your loan servicer. Your loan servicer will send you information on how and when to send your payments. If you don’t know, you can find this information on the Federal Student Aid website, studentaid.gov. Most payments are made online, or you can sign up for automatic debit.
Can I pay more than my required monthly payment?
Yes. There is no penalty for prepayment of your loans. You should contact your loan servicer to determine the best way to pay the extra amount, on either a one-time or recurring basis, to ensure that the payment is credited toward your outstanding principal.
How can I reduce my monthly student loan repayment amount?
Contact your loan servicer to determine if you are currently in the repayment option which requires the lowest monthly payment. If your circumstances have changed since you first entered repayment, it is possible to change repayment plans.
What happens if I don't make my student loan payments?
If you do not make your student loan payments or make late payments, your loan will go into delinquent status and may eventually go into default. Delinquent and default student loan status is reported to the credit bureaus and will have a negative impact on your credit rating and future borrowing ability. In the case of default, the Department of Education also has the authority to legally require wage garnishment and withholding of tax refunds.
Can I deduct the amount of my student loan payments on my taxes?
You may be able to deduct interest you pay on a qualified student loan. Depending on your income, you may be able to deduct the lesser of $2,500 or the amount of interest you actually paid, The deduction is claimed as an adjustment to income so you do not need to itemize your deductions to benefit from this deduction.
Does Temple have a loan repayment assistance program?
Yes, Temple has a loan repayment assistance program (LRAP) for graduates entering public interest careers. Our LRAP is the Barrack Public Interest Fellowship Program and it “lends” eligible graduates funds to help in repaying their loans, and that loan is then forgiven based on the graduates continued employment in an eligible public interest position.