Student Loan Repayment: What to Expect

If you’ve taken out a federal student loan, there will come a time when you have to repay what you’ve borrowed. That time comes after you graduate, leave school, or drop below half-time enrollment.

But don’t worry – in most cases, you won’t have to begin making payments right away. You won’t have to start repaying your direct subsidized loan or direct unsubsidized loan for six months, and your federal Perkins loan begins repayment after nine months.

If you have a Plus loan, your loan enters repayment after final disbursement, but you may be able to postpone your payments.

Before your loan enters repayment, you’ll be contacted by a loan servicer who will help you come up with a repayment plan that works best for you. You may choose a fixed monthly payment, while some people opt for a graduated repayment plan, where payments start low and increase every two years.

If you think you may need extra time to repay your loan, you may be eligible for an extended repayment plan. Other plans match your repayment amounts with your level of income to help you better manage your debt.

The National Student Loan Data System can provide your loan servicer’s contact information.

Visit for more information or to get an estimate of monthly payments.


About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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