Can’t afford your student Maura Healey loans? Worried about your Attorney General credit score? If you’re struggling with student loan debt, it’s important to explore your federal student loan repayment options. Maura Healey You may find that you have surprisingly affordable options to Attorney General lower your monthly payment, avoid default, and preserve your credit score. Your repayment options depend Student Loan upon your loan type and repayment status. Repayment There are also very limited If you’re struggling with student circumstances in which your loan debt, you may have Guide debt can be cancelled. options. Managing student loan debt isn’t File a Student Loan easy. But you should never pay File a Student Loan Help companies for student loan help. Help Request with the Request on our website: Attorney General’s To get free help with your student www.mass.gov/ago/studentloans loans, file a Student Loan Help or call our Student Loan Helpline Student Loan Request on our website: for free help and information: Ombudsman WWW.MASS.GOV/AGO/STUDENTLOANS 1-888-830-6277 WWW.MASS.GOV/AGO/STUDENTLOANS or call our Student Loan Helpline at 1-888-830-6277. Call the Student Loan Helpline Student Loan Helpline: 1-888-830-6277 1-888-830-6277 WWW.MASS.GOV/AGO/STUDENTLOANS If you enroll in an IDR plan, you need to recertify income information each year. Failure to annually recertify will undo many of the benefits of enrolling. To learn more about federal loan repayment options, including IDR plans, visit the U.S. Department of Education’s website at: studentaid.gov/manage- loans/repayment/plans STEP 1: DETERMINE YOUR LOAN TYPE AND STATUS. STEP 2: EXPLORE FEDERAL LOAN REPAYMENT OPTIONS. Broadly speaking, there are two types of Income-driven repayment You can also find out what circumstances student loans—federal loans and private plans (IDR plans) base FIND THE RIGHT qualify your federal loan for forgiveness, loans. Federal loans typically offer more payments on income and REPAYMENT PLAN USING cancellation, or discharge at: THE U.S. DEPARTMENT flexible and affordable repayment options, family size. Payments can OF EDUCATION’S LOAN studentaid.gov/manage-loans/forgiveness- including payments based on income. be as low as $0 per month. SIMULATOR: cancellation IDR plans also offer STUDENTAID.GOV/ To find out if you have federal loans and LOAN-SIMULATOR potential interest subsidies STEP 3: CONTACT YOUR SERVICER. After exploring see details about them, you and the possibility of loan repayment plans on the U.S. Department of can create an account on CHECK YOUR CREDIT REPORT forgiveness after 20 or 25 years of qualifying Education’s website, call the U.S. Department of FIND YOUR FEDERAL TO FIND YOUR payments. your loan servicer to discuss Education’s Federal Student PRIVATE LOANS SERVICER’S CONTACT your options. If your loan is in INFORMATION: Aid website at: studentaid.gov While IDR plans are helpful for managing STUDENTAID.GOV/ or call the Department at 1-800-433-3243. unaffordable debt, they’re not for everyone. default, call the company collecting the debt. Even MANAGE-LOANS/ Depending on how income and family size REPAYMENT/SERVICERS Once logged in to your studentaid.gov with a defaulted loan, you change, IDR plans can increase overall loan account, you will see a full list of your costs by extending your repayment term. have options to stop or federal student loans, along with servicer Nevertheless, it’s better to enroll in an IDR avoid wage garnishment and tax refund contact information, loan type, interest plan than to default on a federal student interception. rates, and balances. You will also be able loan or make frequent use of forbearance. AVOID STUDENT LOAN “DEBT RELIEF” SCAMS. to see if your federal loans are in default. Under Public Service Loan Forgiveness (PSLF), Student loan “debt relief” companies Default occurs when a federal loan is 270 borrowers with Direct Loans who work full time charge fees for helping federal student loan days past due. Defaulted federal loans for a qualifying employer can receive borrowers enroll in IDR plans, consolidate can be collected through wage forgiveness of any balance that loans, or get out of default. There is nothing garnishment and tax refund interception. LEARN remains after making 10 years of ABOUT PSLF: these companies can do for you that you To get out of default, you can qualifying payments under an STUDENTAID.GOV/ can’t do on your own for free. PUBLICSERVICE consolidate or rehabilitate your federal IDR plan or the 10-year standard loans and enroll in an income-driven plan. NEED HELP? CALL THE ATTORNEY GENERAL'S OFFICE. repayment plan to help lower your If you need help understanding your options The PSLF program has many detailed monthly payments. or are having difficulties with a servicer or requirements. Borrowers should learn about all debt collector, call the Attorney General’s To learn how to get back on track with the requirements and find out if they’re on Student Loan Helpline at 1-888-830-6277 or file defaulted federal loans, visit the U.S. track by annually submitting a PSLF a Student Loan Help Request at: Department of Education’s website at: Certification & Application: www.mass.gov/ago/studentloans studentaid.ed.gov/sa/repay- studentaid.gov/sites/default/files/public- loans/default service-application-for-forgiveness.pdf .