Question 1

What can I do if my loan servicer makes a mistake?

Accepted Answer

Start by contacting your servicer directly and documenting the issue in writing. If it isn't resolved, you can file a complaint with the Federal Student Aid Ombudsman or the Consumer Financial Protection Bureau, both of which handle disputes between borrowers and servicers and can push for a correction.

Question 2

What protections do federal student loan borrowers have?

Accepted Answer

Federal borrowers are entitled to things like a grace period before repayment starts, the right to request deferment or forbearance in hardship situations, access to income-driven repayment, loan discharge in specific circumstances (such as total disability or school closure), and clear disclosures about their loan terms. Servicers are also required to provide accurate information and timely responses to borrower requests.

Question 3

What's the difference between subsidized and unsubsidized federal loans?

Accepted Answer

With a subsidized loan, the government pays the interest while you're in school at least half-time, during your grace period, and during deferment, so your balance doesn't grow in the meantime. With an unsubsidized loan, interest accrues the entire time, including while you're still in school, and gets added to your balance if you don't pay it as it accrues.

Question 4

How do I switch to a different repayment plan?

Accepted Answer

You can typically request a plan change directly through your loan servicer's website or by contacting them, and for income-driven plans you'll usually need to provide income documentation. There's generally no cost to switch, and you can change plans again later if your financial situation changes, though switching plans can affect how much interest accrues overall.

Question 5

Why does unpaid interest sometimes get added to my loan balance?

Accepted Answer

When interest accrues faster than you pay it off — during school, a grace period, deferment, or forbearance — any interest that isn't paid can be capitalized, meaning it gets added to your principal balance. From that point forward, you're paying interest on a larger amount, which is why paying at least the interest during these periods can save money long-term.

Your Rights as a Borrower

Your Rights Before Student Loan Wage Garnishment

Your Rights When Your Student Loan Servicer Makes a Mistake

Your Student Loan Servicer Made a Mistake. Here’s How to Fight Back.

Subsidized vs. Unsubsidized Student Loans: What the Difference Actually Costs You

Direct Subsidized vs. Unsubsidized Loans: What Every Borrower Needs to Know

How Student Loan Interest Actually Works Before It Wrecks Your Budget

Subsidized vs. Unsubsidized Federal Student Loans: What You Need to Know Before You Borrow

Subsidized vs. Unsubsidized Student Loans: The Difference That Costs You

How to Get a Student Loan Without Borrowing More Than You Need

How to Read Your Financial Aid Award Letter Before You Sign for a Student Loan

Student Loan Capitalization: Why Your Balance Keeps Growing Even When You Pay

Subsidized vs. Unsubsidized Student Loans: The Difference That Costs You Thousands

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FAQ

Frequently Asked Questions