When you graduate, drop below half-time, or withdraw from your academic program, you will receive a six-month Grace Period for your Direct Subsidized and Unsubsidized Loans and a nine-month grace period if you borrowed a Perkins Loan. You are required to complete Exit Counseling. Once your grace period ends, you must begin repaying your loan(s).
Federal student loans have a variety of repayment options. Use the information in this section to find the best way to manage student loan repayment.
- There are multiple repayment plans available.
Standard: With the standard plan, you'll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you'll have up to 10 years to repay your loans.
Extended To be eligible for the extended plan, you must have more than $30,000 in Direct Loan debt and you must not have an outstanding balance on a Direct Loan as of October 7, 1998. Under the extended plan you have 25 years for repayment and two payment options: fixed or graduated. Fixed payments are the same amount each month, as with the standard plan, while graduated payments start low and increase every two years, as with the graduated plan below.
Graduated: With this plan your payments start out low and increase every two years. The length of your repayment period will be up to ten years.
Income Contingent: (not available for parent PLUS loans) This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.
Income-based: Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 10 years.
- You may lower your interest rate by making electronic payments.
- Repayment Calculators calculate monthly payments and may help determine if switching repayment plans is a good idea.
- Applying for deferment or forbearance may help you from going into default on your student loan if you are having trouble making payments.
|LOAN PROGRAM||HOW TO START REPAYMENT|
|Federal Direct Stafford Loans
(subsidized and unsubsidized)
|Federal Perkins Loan||
Payments can also be directed to the PSU Collections Office:
Phone: (503) 725-3440
For more information concerning the Federal Perkins Loan read the Business Affairs Office's Perkins Loan information web page.
|Federal Direct Parent PLUS Loans||
|Federal Direct PLUS Loans for Graduate and Professional Students||
|Private Student Loans
Loan Forgiveness and Cancellation
There are multiple loan forgiveness and cancellation programs available for students that meet certain criteria.
- Stafford Loan Forgiveness Program for Teachers
Educators in some fields are eligible for up to $17,500 in loan forgiveness and teachers who teach in low-income schools for at least 5 years and meet other requirements are eligible for $5,000 off their federal student loans.
- Public Service Loan Forgiveness
The Public Service Loan Forgiveness Program was created to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, you may qualify for forgiveness of the remaining balance due on your eligible federal student loans after you have made 120 payments on loans under certain repayment plans while employed full time by certain public service employers.
- Portland State University Perkins Loan Forgiveness Program
If you received a Perkins loan from PSU, and are now an educator, you may qualify to have some of your loan canceled.
A loan consolidation combines one or more eligible educational loans into a single new loan. The Direct Loan Program offers a Direct Consolidation Loan for those borrowers who are interested in consolidating their eligible educational loans.
Students have the option to consolidate their Federal Student Loans and lock in a fixed interest rate by consolidating multiple student loans into a single loan once they finish school; however, loan consolidation is not a one-size-fits-all option. There are lots of things to think about and consider before jumping into consolidation. Don't feel rushed into anything! You can always consolidate, but you may feel the pressure to lock into today's interest rates.
Prior to consolidation you will need your complete borrowing history. You can retrieve this information from theNational Student Loan Data System by visiting their website and selecting "Financial Aid Review" (FAFSA PIN required).
Guarantee agencies are a good place to start and familiarize yourself with the aspects of consolidation. Listed below are links to our Guarantors and Direct Loan Servicing loan consolidation programs. Use these resources to perform your own comparisons and see which consolidation program will work for you. Please thoroughly research any lender with whom you choose to consolidate.