FAQ

No. Federal Student Aid states you never have to pay for help with your federal student loans. Repayment plan changes, consolidation applications, deferment, forbearance, and PSLF forms are free through StudentAid.gov and your federal servicer. Paid debt relief companies that charge upfront fees for federal services are a common scam pattern.

Log in at StudentAid.gov with your FSA ID. The site lists your federal loans, balances, interest rates, and current servicer contact information. Use only official links. If someone calls claiming to be your servicer, hang up and log in yourself before sharing information.

No. The FAFSA is free. File at the official FAFSA site linked from Federal Student Aid. Third-party sites that charge a FAFSA filing fee are not required. Your school may also ask for supplemental forms, but the federal FAFSA itself has no filing fee.

Most new graduate and professional students cannot receive new Grad PLUS starting July 1, 2026. CRI Student Aid lists a limited exception for students enrolled in the program by June 30, 2026 who borrowed a Direct Loan for that program before July 1, 2026 and remain continuously enrolled in the same program at the same school. Everyone else must use capped Direct Unsubsidized Loans plus other funding.

For many graduate students who are not professional students and who do not qualify for an interim exception, Federal Student Aid lists an annual Direct Unsubsidized limit of 20,500 dollars and a 100,000 dollar aggregate limit for graduate study. Professional students may qualify for higher annual and aggregate limits. Your financial aid office confirms your category and any interim exception.

Federal Student Aid assigns higher annual Direct Unsubsidized limits to some professional students than to general graduate students, with a separate aggregate formula tied to amounts already borrowed as a graduate student. Your aid office confirms professional status and limits. After July 1, 2026, Grad PLUS is unavailable to most new borrowers regardless of field.

No. A court order ended the federal SAVE Plan in March 2026. Federal Student Aid and federal loan servicers describe SAVE as ended and direct borrowers to choose another repayment plan. Servicers began notifying former SAVE borrowers on July 1, 2026 with a window to switch plans. Do not pay any company that claims it can enroll you in SAVE today. Use your servicer portal or StudentAid.gov for official plan options.

There is no single automatic replacement for every borrower. Former SAVE borrowers must choose among plans they are eligible for, such as RAP, IBR, Tiered Standard, Standard, Graduated, or Extended. Eligibility depends on loan types and disbursement dates. RAP uses AGI brackets. Tiered Standard uses fixed payments over 10 to 25 years based on total Direct Loan principal but those payments do not count toward PSLF. Log in at StudentAid.gov or call your federal servicer with your account details.

RAP payments use a sliding percentage of prior-year adjusted gross income, never more than 10 percent, with a 10 dollar monthly minimum and a 50 dollar reduction per dependent. Payments can count toward Public Service Loan Forgiveness when all PSLF rules are met. RAP is the only IDR plan if all your loans were disbursed on or after July 1, 2026. Federal servicers publish bracket tables; exact dollar boundaries at some multiples of 10,000 dollars have conflicting official tables, so confirm estimates with your servicer.

Starting July 1, 2026, federal borrowers enrolled in automatic payments may receive a 1 percent interest rate reduction. Federal Student Aid states borrowers who enroll by December 31, 2026, or who are already enrolled, keep the reduction through June 30, 2028. Enroll through your federal servicer. The discount applies to eligible federal loans per official guidance, not private loans.

Federal Student Aid states PAYE and Income-Contingent Repayment end no later than July 1, 2028 for eligible participants. They remain available only for eligible loans disbursed before July 1, 2026 under existing rules. Borrowers on those plans should plan transitions with their servicer before the sunset.

Most Direct Loans have a six-month grace period after you leave school or drop below half time before payments begin. PLUS loans may enter repayment sooner unless deferred. Your servicer sends a billing notice before the first due date. Private loan repayment start dates depend on your promissory note.

Federal loans become delinquent the day after a missed due date. Servicers report delinquency to credit bureaus over time. Contact your servicer immediately to discuss options such as income-driven repayment or forbearance if you cannot pay. Missing payments long term can lead to default with serious consequences.

Federal default can trigger collection costs, wage garnishment, seizure of tax refunds, loss of eligibility for new federal aid, and severe credit damage. Rehabilitation and consolidation are two pathways out of default with specific requirements. Private default consequences depend on the lender contract and state law.

Federal Student Aid and servicer materials state that if all of your loans were disbursed on or after July 1, 2026, RAP is the only income-driven repayment plan available. Older loans may still access IBR or legacy plans before sunset dates. Mixed loan histories follow rules based on which loans are on which plans. Ask your servicer to model your mix.

Tiered Standard terms depend on total Direct Loan principal: less than 25,000 dollars is 10 years, 25,000 to under 50,000 is 15 years, 50,000 to under 100,000 is 20 years, and 100,000 or more is 25 years. A balance of exactly 25,000 dollars uses a 15 year term. Payments are fixed for the calculated term.

Federal Direct Loans for students usually qualify for in-school deferment while you are enrolled at least half time in an eligible program, though unsubsidized loans still accrue interest. If you drop below half time, grace or repayment rules apply. Private loans may require interest-only or full payments while in school depending on your contract.

Some employers offer student loan repayment assistance as a benefit. Programs vary by employer and may have tax implications. Employer payments do not replace your monthly bill unless the program is structured that way. PSLF still requires qualifying employment and payments under federal rules. Read your employer policy and keep servicer records.

Private refinance pays off federal loans and replaces them with a private loan. You typically lose income-driven repayment, Public Service Loan Forgiveness, federal deferment and forbearance rights, and federal discharge programs unless a private contract explicitly matches them, which is rare. You also lose access to future federal rule changes. Only refinance if you accept that trade.

No. Federal Direct Consolidation combines eligible federal loans into one federal loan with a weighted average rate. It keeps federal benefits if eligibility rules are met. Private refinance creates a new private loan and removes federal protections. Consolidation can reset forgiveness progress in some cases. Choose based on whether you need federal options or private pricing.

No. Federal Student Aid states that payments under the Tiered Standard Plan do not count toward Public Service Loan Forgiveness. If you are pursuing PSLF, you need a qualifying repayment plan such as RAP or IBR for eligible loans, plus qualifying employment and Direct Loans. Check your progress with the PSLF Help Tool and submit employer certification forms.

Income-Based Repayment may forgive remaining balance after 20 years for new borrowers under the 10 percent payment formula, or after 25 years for others, if all program requirements are met. Discharge on or after January 1, 2026 may be taxable at the federal level per Federal Student Aid. IBR is for many loans disbursed before July 1, 2026.

Qualifying employers generally include government organizations and nonprofits with 501(c)(3) status, plus other not-for-profit employers that provide qualifying public services. Religious work, labor unions, and partisan political organizations usually do not qualify. Use the PSLF Help Tool on StudentAid.gov to search employers and read the official definition.

Federal Student Aid states that income-driven repayment discharge on or after January 1, 2026 may be taxed as income at the federal level. PSLF forgiveness has different federal tax treatment when all rules are met. State taxes vary. This is general education, not tax advice. Consult a qualified tax professional for your return.

Warning signs include upfront fees, promises of instant forgiveness, pressure to stop paying your servicer, requests for your FSA ID password, or claims of a special government program unavailable on StudentAid.gov. Federal loan help is free. Report suspected scams to the FTC and verify any offer with your servicer.

Unless the student qualifies for an interim exception, Federal Student Aid describes a maximum Parent PLUS loan of 20,000 dollars per academic year and 65,000 dollars total per undergraduate student across all parents. With an interim exception, parents may still borrow up to cost of attendance minus other aid. Confirm with your school’s aid office.

Federal Student Aid references an interim exception for some students already enrolled that may allow Parent PLUS above the new 20,000 dollar annual and 65,000 dollar aggregate caps, up to cost of attendance minus other aid. The exact tests are described on studentaid.gov and should be confirmed with your financial aid office before parents commit to borrowing.

Many undergraduate private loans require a creditworthy cosigner because students have limited credit history. Some lenders market no-cosigner products for graduate students with strong credit and income. Approval and pricing depend on the lender’s underwriting. Federal Direct Loans for students do not require a cosigner except for PLUS endorsement situations.

Federal student loans are made under federal programs with statutory repayment and forgiveness options. Private student loans are issued by banks, credit unions, or other lenders under private contracts. Federal loans offer income-driven repayment and PSLF for eligible borrowers. Private loans offer terms set by the lender with fewer federal protections. Compare both carefully before borrowing or refinancing.

APR, annual percentage rate, expresses the yearly borrowing cost including interest and certain fees. It helps compare private offers on equal terms. A lower APR usually means lower total cost if repayment length and fees match. Lenders set APR from credit, income, school, and whether a cosigner is used. Verify whether the rate is fixed or variable before you sign.

A fixed private rate stays the same, which makes budgeting predictable. A variable rate can change with market indexes, so payments may rise or fall. Variable rates often start lower but carry uncertainty. Federal Direct Loans for new borrowers are generally fixed. Match your choice to how long you will carry the debt and your tolerance for payment swings.

Cosigner release is optional private lender policy, not a federal right. Lenders may require a track record of on-time payments, minimum credit score, and proof of income before removing a cosigner. Terms vary and denial is possible. Ask for written requirements before you borrow. If release matters, choose a lender that publishes clear rules.

Some private lenders charge origination or disbursement fees and some do not. Fees increase total cost beyond the interest rate alone. Always read the Truth in Lending disclosure and promissory note. Compare APR, not just the rate quoted in marketing email.