You have a lot on your plate. You might be starting a career, moving, making major life plans. Here's what to expect from your student loan servicers.
One last bit of instruction
Attend an exit counseling conducted by your financial aid office. (Schools participating in federally sponsored loan programs are required to conduct exit counseling before graduation for students who have borrowed through the programs.) You'll be able to discuss your student loan obligations and to ask any questions you have about repayment.
Shortly before your repayment term begins, you will receive a notice—called a repayment obligation or disclosure statement—that tells you when you must start making student loan payments and how much you can expect to pay each month. You will also receive a coupon book or bill approximately one month before your first payment is due.
Paying electronically
If your student loan is serviced by Sallie Mae, you will have a choice of electronic payment options.
- With automatic debit, you authorize the withdrawal of funds from your bank account to cover your monthly payment.
- With online billing, you get an electronic bill every month, and you can then make your payment online.
Other loan servicers may have similar plans. Please contact your lender or servicer for more information.
For Sallie Mae customers, enrolling in Manage Your Loans gives you up-to-date account information and allows you to make payments, change payment plans, and update your address and other personal information - all online.
Do you know about Upromise Loan Link? You can link your Sallie Mae loan account to your Upromise account and use Upromise rewards to help pay down your eligible Sallie Mae-serviced student loans. You can invite family and friends to join Upromise and contribute their rewards to your Upromise account and increase your savings.
Is there a new name on the bills?
Your lender might have sold your student loans to a company that buys and services the loans through repayment. The new servicer might give you new repayment options that were not available before.
Although you will make payments and direct calls and correspondence to the new company, your loan terms and conditions (e.g., interest rate, repayment term) will remain the same.
Choosing the right repayment plan for your student loans is your first step toward meeting your financial goals. See which repayment option best meets your needs.
Payment amount reduction may be available for those who qualify. Federal student loan repayment options are:
Standard repayment
When you are due to start repaying, your federal student loans are automatically placed into the standard repayment plan, which will apply until you make a change. You make level monthly payments of principal and interest over the term of the loan.
Use Sallie Mae's monthly loan payment calculator to see how this plan might work for you.
Extended repayment
Lower your monthly federal student loan payment through a lengthened repayment term. If you have more than $30,000 Federal Family Education Loan Program (FFELP) loans, and/or more than $30,000 in Federal Direct loans, you may qualify for this plan. Eligibility restrictions apply.
Graduated repayment
With graduated repayment on your federal student loans, your monthly payments are lower at the beginning of repayment and increase over the term of the loan.
Income-sensitive repayment (available only for FFELP loans)
Payments on your federal student loans are based on a percentage of your monthly income - from 4% to 25% - as long as you pay at least the interest that accrues every month. In certain circumstances, payments can be less than interest through the use of reduced-payment forbearance.
Income-contingent repayment (available only for Federal Direct loans)
You can base your monthly payment amount on your adjusted gross income, family size and the total amount of your loans.
Income-based repayment
Income-based repayment (IBR) offers an opportunity to make affordable payments on Stafford, Grad PLUS, and most federal consolidation loans (excluding those with Parent PLUS Loans). This payment plan is designed to assist those who have high student debt levels relative to their incomes.
If you meet the definition of having a partial financial hardship, you may qualify for a reduction in your monthly payment under this plan. The reduction is based on a federal formula that considers your income, state of residence and family size. Our monthly loan payment calculator can help you determine whether or not you are eligible for IBR.
Still undecided? Use our monthly loan payment calculator to see which plan fits best.
Private student loan programs
Eligibility for Sallie Mae private student loan repayment plans may vary by loan type, loan balance, and disbursement date.
The Sallie Mae Smart Option Student LoanSM requires monthly interest-only payments during the in-school and separation periods. Check the terms of your loan's specific Promissory Note and log in to Manage Your Loans to see if your loan status shows repayment. If so, and you are enrolled in school, then you are not eligible for other repayment options at this time.
