How to Check Your Student Loan Debt: Essential FAQs

Frequently asked questions about federal student loans

It’s important to understand more about your student loans than just the current balance. As you develop a student loan management plan, keep these common questions in mind.

What happens if I don’t repay?

Failing to repay your federal student loans could have severe consequences for your financial future. When you begin missing payments, your lender or servicer may start trying to contact you by phone, email, or mail. Eventually, the loan will go into default.

Defaulting on your student loan debt typically eats away at your creditworthiness. Loan servicers report your lack of payment to the credit bureaus, affecting your credit report and pulling down your credit score. With a low credit score, you may struggle to rent an apartment, take out a car loan, or buy a house, among other major financial moves.

Missing a couple of payments won’t automatically put you in default. According to the Consumer Financial Protection Bureau, it often takes about nine months of non-payment (without making an arrangement with your loan servicer) to default on your student loans.

After continued non-payment, the federal government could garnish your wages without a court order. The government may also confiscate tax refunds and Social Security payments to apply to your outstanding balance. If your student loan goes into default, contact your loan servicer right away to arrange a repayment plan.

What are my repayment options?

You have several options for repaying your federal student loans. The best choice may depend on your financial circumstances (like other expenses and income), your career type, and your priorities.

• Standard Repayment Plan
  The Standard Repayment Plan might be the right call if you have consistent income or a low balance and want to repay your debt as quickly as possible. The standard plan divides your debt into 120 consistent payments over 10 years.
• Graduated Repayment Plan
  With a Graduated Repayment Plan, monthly payments start small and increase every two years. If you’re in a field with somewhat predictable income growth, like a doctor beginning residency, graduated repayment could be a good fit.
• Income-Driven Repayment Plan
  The federal government offers several Income-Driven Repayment options for student loans. These options calculate monthly payments based on a percentage of your discretionary income.
• Public Service Loan Forgiveness (PSLF)¹
  If you work in certain government agencies or nonprofit organizations, the federal government may forgive your remaining federal student loan balance after a period of responsible repayment, including 120 or more qualifying payments over 10 years.

Can I consolidate my loans?

If you’re juggling multiple monthly student loan payments, federal loan consolidation could help. “Consolidation” refers to combining multiple direct loans into one. That way, you’d be responsible for only one monthly payment to a single student loan servicer. You could consolidate your federal loans through the Department of Education or the Direct Loan Program.

Student loan consolidation streamlines repayment and may lower your monthly bill. However, it doesn’t reduce interest rates. In fact, you may end up spending more in the long run after consolidation because lower monthly payments mean a longer term — and more interest.

Can my loans be discharged or forgiven?

In addition to the PSLF and IDR programs, other potential paths to federal student loan forgiveness could be available to you through other federal programs. Visit these resources to learn more about alternative forgiveness possibilities:

• Who Qualifies for Student Loan Forgiveness? 
• How to Get Student Loan Forgiveness

In some circumstances, the federal government may discharge or forgive student loans, which means borrowers no longer have to pay the remaining balance. You may qualify for student loan discharge if circumstances beyond your control limit your education’s financial value to you. Potentially qualifying examples include:

• School closure
  If your college or university closes abruptly while you’re enrolled or very soon after you graduate, you may qualify for student loan discharge.
• Misleading claims
  If an institution intentionally and directly misleads you about educational outcomes — like guaranteeing a certain job or income amount — you may qualify for discharge of your remaining loan balance.
• Total and permanent disability
  If the Department of Veterans Affairs or Social Security Administration determines that you’ve become totally and permanently disabled, you may qualify for student loan discharge.
• Unpaid refund discharge
  If you withdraw from college, your university may have to return a portion of your student loan to you. The federal lender may issue a partial loan discharge for the amount the university owes if they fail to do so.