One thing students should begin thinking about before they borrow loans is what repayment of those loans will be like later on. Whether you’re a first-time borrower thinking about getting student loans or whether you’re leaving school soon and are hearing things about consolidation loans, repayment plans, loan forgiveness programs, or deferment and forbearance, this site should be able to give you some guidance. Different student loan programs have different repayment requirements. The information on this page primarily addresses federal student loans (Stafford and Perkins). For other loan programs, please contact the loan holder for repayment conditions and options.

It is extremely important when you are in repayment on your loans that you make your full loan payments on time according to the repayment schedule your lender provides. If you don’t keep up with your loans, you could end up in default - a state of existence with very serious consequences.

After you graduate, leave school, or drop below half-time enrollment, you will have a grace period before you start repayment on your federal loans. For Stafford loans, the grace period is 6 months. For Perkins loans, the grace period is 9 months. (Please note that Parent PLUS loans do not have a grace period. Repayment for PLUS loans begins 60 days after the final disbursement on the loan. For example, if a Fall/Spring loan has two disbursements - one in late August and one in early January - the parent’s repayment would begin sometime in early March.)

During your grace period, you should be notified by UT to complete loan exit counseling. This session, which can all be completed on-line, will give you more information about what you can do to stay on top of your repayment. During the grace period, you should make sure to notify your loan holder of any changes of address, name, or employer that you have. It is of paramount importance that your loan holder be able to contact you with your repayment schedule and other important documents. Don’t be afraid to initiate contact with your loan holder(s)! If you have questions about the status of your loans and your repayment, take the initiative!

When you’ve completed your exit loan counseling and have been in touch with your loan holder(s), they should notify you of various repayment plans that might be available. They should also tell you what options will be available to you in the future if you ever have trouble making your payments on time. Furthermore, there are various loan cancellation or forgiveness plans for which you might be eligible, and you may want to ask your lender about consolidation loans. Although our staff will be glad to help you as much as we can with questions about your repayment, we are not experts in this field. If you ever have specific questions about repayment, you will do best to contact your loan holder or the default prevention team at TG at 1-800-845-6267. Also, you should read the federal Repaying Your Student Loans guide.