Repaying Your Loans

Starting Repayments

Approximately 30-45 days from the last day of your grace period, your first payment will be due. You will receive a repayment schedule during your grace period that will disclose payment amounts, due dates and the period of time you will be paying.

What is the difference between subsidized and unsubsidized loans?

Subsidized Direct Loans (Undergraduate Only)

Subsidized Direct Loans are awarded to students with demonstrated financial need. Interest is subsidized (paid) by the government while the student is in school and during the six-month grace period after the student leaves school or drops below half-time enrollment status*. Loans enter repayment at the end of the grace period.
*Interest will be charged during the six-month grace period for subsidized loans disbursed between July 1, 2012 and June 30, 2014.

Unsubsidized Direct Loans (Undergraduate/Graduate)

Unsubsidized Direct loans are available to all students regardless of income. Interest accrues from the date of disbursement, but the extra costs of accrual can be avoided by making regular interest payments while in school. Any interest that is unpaid when repayment begins will be capitalized and added to your principal balance, increasing the total loan amount you must repay. Loans enter repayment six months after the student graduates or ceases half-time enrollment.

Capitalization occurs if you choose not to pay the interest that is accruing on an unsubsidized loan during such periods. When capitalizing, the unpaid interest is added to the loan principal, increasing your total outstanding balance.

What is principal and interest?

Principal is the amount you borrowed. Interest is a fee charged to you for use of the loan money, calculated as a percentage of the principal of the loan and paid over a specified time.

Grace Period

The federal student loan “grace period” begins the day after you graduate, leave school, or drop below half-time enrollment. Federal Direct loans have a six-month grace period; other federal student loans may have longer or shorter grace periods.

Payments are not required during the grace period; however, you may wish to pay the interest that accrues during this period. Any interest that is unpaid when repayment begins will be capitalized and added to your principal balance, increasing the total loan amount you must repay. Note: interest is charged on unsubsidized loans during the grace period, but not on subsidized loans.*

*Interest will be charged during the grace period for subsidized loans disbursed between 7/1/2012 and 6/30/2014.

Repayment Plans

Standard Graduated Extended Fixed Extended Graduated
Repayment Period 10 years 10 years 25 years 25 years
Payment Type Fixed Payments Payments start low, then increase every 2 years Fixed Payments Payments start low, then increase every 2 years
Conditions and Payment Guidelines Payments of $50 or more Payments must be at least equal to monthly interest due

No single payment will be more than 3 times greater than any other payment
More than $30,000 in Direct Loans and/or more than $30,000 in FFEL Loans.

New borrower as of Oct. 7, 1998.

Payments of $50 or more.
More than $30,000 in Direct Loans and/or more than $30,000 in FFEL Loans.

New borrower as of Oct. 7, 1998.

Payments must be at least equal to monthly interest due.

No single payment will be more than 3 times greater than any other payment.

Pay As You Earn Income-Based Repayment (IBR) Income Contingent Repayment (ICR)
Depending on when you borrowed federal student loans, you may qualify for the Pay As You Earn repayment plan. Like IBR, this plan is based on your income, and generally offers the lowest monthly payments of the income-driven plans. Pay As You Earn is available to some Direct Loan borrowers whose federal student loan debt is high relative to their income. Consider IBR if you owe more in federal student loans than you make in a year in income, or need to make lower monthly payments. You may qualify for IBR if your federal student loan debt is high relative to your income. If you need to make lower Direct Loan payments that are tied to your income, but you do not qualify for IBR or Pay As You Earn, the ICR Plan may be for you. ICR is only available to Direct Loan borrowers.
Annually adjusted payment, based on annual income and family size.
Payment is 10% of your discretionary income and will never be more than the 10-year standard repayment amount. Payment is 15% of your discretionary income and will never be more than the 10-year standard repayment amount. Payment will not exceed the lesser of:
  • What you would pay on a 12-year standard repayment plan multiplied by a factor that is based on your income; or
  • 20% of discretionary income.
After 20 years of qualifying repayment, any unpaid amount will be forgiven.10-year public service loan forgiveness - If you work in public service and have reduced payments under Pay As You Earn, the balance remaining after 10 years in a public service job could be forgiven. After 25 years of qualifying repayment, any unpaid amount will be forgiven.10-year public service loan forgiveness - If you work in public service and have reduced payments under IBR, the balance remaining after 10 years in a public service job could be forgiven. After 25 years of qualifying repayment, any unpaid amount will be forgiven.
For more information about Pay As You Earn, visit StudentAid.gov. For more information about Income-Based Repayment, visit StudentAid.gov. For more information about Income Contingent Repayment, visit StudentAid.gov.

What is a loan servicer, and how do I contact them?

A loan servicer processes student loan bills, payments, deferments, and provides other administrative services. To find your loan servicer, please visit www.studentloans.gov.

How do I contact the Direct Loan Program or find additional information?

To receive a Personal Identification Number (PIN) required signing your FAFSA or Master Promissory Note (MPN):
www.pin.ed.gov.

For Direct Loan Entrance Counseling (new borrowers at UCCS):
www.studentloans.gov

To access and sign your Master Promissory Note (Stafford and PLUS loans):
www.studentloans.gov
1-800-557-7394

Federal PLUS Loan Credit Appeals and Endorser Applications:
www.studentloans.gov
1-800-557-7394

To access your personal account information:
myedaccount.com

Are Perkins and Direct Loan repayment statements together in one bill?

No, you will receive a separate bill for each loan program. The Perkins Loan is administered by the UCCS Loan Disbursement office.

What if my grace period expires before I go on to graduate school?

When your grace period expires, payment is due. In order to suspend your payments, the school where you obtained your Perkins Loan(s), as well as your federal loan servicer that administers your Direct Loan(s), must receive verification of your enrollment.

What do I do if I can't make my loan payments?

You may request forbearance, an unemployment deferment, or an economic hardship deferment to obtain a temporary cessation of your payments. Contact the holder of your loan(s). The loan holder will determine your eligibility.

How do I file a student deferment?

Procedures for filing a student deferment for campus-based loans differ from procedures for your federal loan servicer. For campus-based loans, acquire a deferment form from the school where you obtained the loan; for federal loans, please contact your loan servicer.

For more information about how to file a deferment and forbearance please go to myedaccount.com or www.studentloans.gov

Is there a penalty for prepayment of my student loans?

Your federal student loans may be prepaid or paid in full at any time without penalty. You may decide to shorten the repayment period of your loan by making extra payments or paying more than the minimum amount billed. By taking these actions, you will also reduce the total repayment amount for your loan. (NOTE: Private loans may have different terms and conditions; please refer to your promissory note or contact your loan servicer for details.)

What is loan consolidation?

Direct Loan consolidation allows a borrower with multiple federal student loans to combine them into a single loan with one interest rate and repayment schedule. The interest rate for the consolidation is the "weighted average" of the interest rates on the loans being consolidated and is fixed for the life of the loan.

Are you having trouble making payments?

If you're having difficulties making payments on your loans, contact the Direct Loan Servicing Center as soon as possible. The Direct Loan Servicing Center staff will work with you to determine the best option for you. Options include:

  • Changing repayment plans
  • Deferment, if you meet the eligibility requirements. A deferment allows you to temporarily stop making payments on your loan.
  • Forbearance, if you don't meet the eligibility requirements for a deferment but you are temporarily unable to make your loan payments. Forbearance allows you to temporarily stop making payments, or extend the time for making payments.