Loan Repayment & Leaving School

Repayment Plans and Default Prevention

The Direct Loan Program offers loan repayment plans designed to meet the needs of most borrowers. Direct Loans are funded by the U.S. Department of Education through your school and are managed by a loan servicer, under the supervision of the Department. The Direct Loan Program allows you to choose your repayment plan and to switch your plan if your needs change.

To find out more about repayment options before receiving a Direct Loan, borrowers may contact their school's financial aid office or the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you currently have a Direct Loan and would like the exact payment amount on your loan, you can find it out by contacting your loan servicer.

Please bear in mind that, although different loan repayment plans may reduce your monthly payment amounts, they may also increase the total amount you will repay on your loans over time.  It is generally better to pay your loans off as soon as you can by making the largest monthly payments you can afford, because the interest accrued on the loans increases the total balance you must ultimately repay.  For a complete breakdown of loan repayment plans, visit the Federal Student Loan Repayment Plans page.