Direct Loan Repayment

What Are the Terms of the Loan?

The subsidized Direct Loan is interest-free to you during in-school, and deferment periods.  On the unsubsidized Direct Loan, you are charged interest during all periods.  You may have chosen to pay the interest on the unsubsidized loan while you were in school, or you may have allowed the interest to accrue and capitalize (be added to the principal amount).  You should be aware that if you allowed your interest to accrue, your principal amount would be higher than the original amount you borrowed when it is time to enter repayment.

What is the Direct Loan Interest Rate?

The interest rate on a Direct Loan is a fixed rate that depends on when you took out the loan, and if you took out a subsidized or unsubsidized Direct Loan.

Academic Year Loan Was Disbursed Interest Rate Loan Type
2019-20 4.53% subsidized/unsubsidized Undergraduate students
6.08% unsubsidized for Graduate students
2018-19 5.05% subsidized/unsubsidized Undergraduate students
6.6% unsubsidized for Graduate students
2017-18 4.45% subsidized/unsubsidized Undergraduate students
6% unsubsidized for Graduate students
2016-17 3.76% subsidized/unsubsidized Undergraduate students
5.31% unsubsidized for Graduate students
2015-16 4.29% subsidized/unsubsidized Undergraduate students
5.84% unsubsidized for Graduate students

When Do I Begin Repayment?

The Direct Loan has a six-month grace period, which means you begin repayment six months after you cease to be enrolled as a half-time student (whether you graduate or not).

What is a Student Loan Servicer?

A loan servicer is a company assigned to handle the billing and other services on your federal student loan, at no cost to you. Your loan servicer will work with you on repayment options, and will assist you with other tasks related to your federal student loans. 

Keep your contact information up to date so your loan servicer can help you stay on track with repaying your loans. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.

Contact Information:

Contact information for your servicer can be found by logging in at using your FSA ID. You can locate this information under "Dashboard"

What Are My Repayment Options?

There are several repayment options available to borrowers depending on their total loan balance and repayment goals. You can also use the Loan Simulator tool to review your loan information and which repayment plans are better suited to your needs.

What is Teacher Loan Forgiveness?

If you work in a low income school for at least five consecutive years you may qualify for the Teacher Loan Forgiveness Program.