When you are ready to graduate, or will no longer be enrolled at least half-time, if you have borrowed student loans you will need to plan for student loan repayment. The Federal Student Aid website has many resources to help you understand the importance of repaying student loans.
Log in to studentaid.gov using your FSA ID (account username and password).
Be sure to update your personal contact information.
Complete Loan Exit Counseling.
Confirm your student loan servicer.
Visit the "My Loan Servicers" section of your dashboard. Your student loan servicer may vary depending on the type of loan you have and whether those loans are held by the Department of Education or by a private student loan servicer.
Log in to your student loan servicer account.
You may need to create an account once you confirm your loan servicer. Be sure to update your personal contact information.
Research repayment options and confirm the best plan for you.
Use tools like the Federal Student Aid Loan Simulator.
Review your payment due date and amount.
Make note of when your first payment is due and the monthly payment amount. You can sign up for automatic monthly payments. If you have direct loans, one of the benefits of auto-pay is a 0.25% interest rate deduction.
Stay alert to avoid scams.
Here are some signs to help you identify a scam by a student loan debt relief company:
It is extremely important to follow through on student loan repayment. There are serious and sometimes long-term consequences if you do not repay your student loans. If you have questions, or anticipate having trouble making payments, contact your loan servicer immediately to learn about options to avoid delinquency and default.
Delinquency happens when your payment is late. If you are delinquent on your student loan payment for 90 days or more, your loan servicer will report this to the national credit bureaus, which can negatively impact your credit rating. If you continue to be delinquent, you risk your loan going into default.
If you have a poor credit rating, it can be difficult to obtain credit cards, home or car loans, or other forms of consumer credit. You may also be charged a higher interest rate than someone with a good credit rating, have trouble signing up for utilities, getting homeowner's insurance, getting a cell phone plan, or getting approval to rent an apartment. It can take years to reestablish a good credit rating.
If your student loan goes into default, there can be legal and financial consequences, including having the entire unpaid balance of your loan and interest due immediately. Additionally, tax refunds and other federal benefits may be withheld, your wages may be garnished, you will not be eligible for deferment or forbearance, and you may be taken to court.
One option for getting your loan out of default is loan rehabilitation. The One Big Beautiful Bill Act allows borrowers to rehabilitate a defaulted loan twice, with a minimum rehabilitation payment of $10 per month, effective July 1, 2027.
Another way to get out of default is to consolidate your defaulted student loan into a direct consolidation loan. Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan.
In certain situations, you can have your federal student loans forgiven or cancelled. The Public Service Loan Forgiveness (PSLF) program is the most common way people apply to have their student loans forgiven.
The One Big Beautiful Bill Act does not make any changes to PSLF, but some borrowers who were enrolled in income-driven repayment (IDR) programs and had or will have loans discharged may be subject to changes in tax policy. Borrowers are encouraged to speak with the IRS or a tax professional to determine whether their loan cancellation is considered taxable income.
There are other types of loan discharge or cancellation options. However, it is important to remember that if you do not qualify for loan forgiveness, cancellation, or discharge, you must repay your loan whether or not you complete your education, find a job related to your program of study, are happy with the education you paid for with your loan, or were a minor when you signed your promissory note or received the loan.
If you are in a short-term financial bind, you may qualify for a deferment or forbearance. With either of these options, you can temporarily suspend your payments, but both have pros and cons. Contact your loan servicer if you are experiencing financial hardship to learn more.
The One Big Beautiful Bill Act, signed July 4, 2025, introduces significant changes to federal student loan repayment plans and deferment options beginning July 1, 2026, including the elimination of current income-driven repayment plans and the sunsetting of economic hardship and unemployment deferments. We are actively reviewing the legislation and will share updates as guidance becomes available. See a full summary of federal student aid changes.
For scholarship-specific questions
scholarships@niu.edu