Student loans can be a valuable resource in financing your education. However, borrow conservatively -- accept only what you really need. Explore all options such as grants, scholarships, and employment before borrowing.
Repayment of federal student loans is required six months after leaving school or dropping below half-time enrollment. Your loans will be assigned by the US Department of Education to a loan servicer. The loan servicer is who you will pay back and who you will contact if you have questions regarding your loans. To find out who your loan servicer is, log onto www.nslds.ed.gov. You will need your FSA ID and password.
A great way to manage your student loans and learn of different repayment plans is to create a SALT account at www.saltmoney.org. Once logged in, use the Know What You Owe tool. This tool will import your loans from NSLDS and will allow you to use calculators, repayment scenarios, and budgeting plans that are customized to your outstanding loans. SALT also provides free counselling with professional loan experts to assist you with your loan questions.
Additional Direct Loan Information
All federal student loans are originated and funded by the U.S. Department of Education; there are no private banks involved. All students and parents wishing to borrow a Federal Direct Loan are required to sign a Master Promissory Note (MPN) with the Department of Education. You can complete this process at www.studentloans.gov.
Once the loan is fully disbursed, the Department of Education will transfer your loan(s) to one of several servicing partners.
It is best practice to keep all documentation and correspondence on your loans. If you need assistance locating the holders of your loans, log onto www.nslds.ed.gov using your FSA ID.
Below are some helpful links to information about the Federal Direct Loan program: