Loan Repayment

Loan Consolidation

As you make plans for repaying your student loans, you may be considering loan consolidation as an option.  Consolidation allows you to pay off some or all of your existing student loans by combining them into a single, large loan.  There are two types of consolidation programs for education loans:

  • Federal Consolidation Loans
    • Fixed interest rate based on a weighted average of the current rates on your existing loans
    • Deferment options predetermined by federal regulations
    • Cannot include non-federal (private) loan funds
  • Private Consolidation Loans
    • Can include both federal and non-federal student loan funds
    • Usually a variable interest rate
    • Forbearances available only at the lender’s discretion

Any consolidation loan is likely to significantly increase the total amount of interest that you will be required to pay.  If you are able to meet your current monthly repayment obligations, it may be best for you to avoid consolidation.

You may want to estimate the amount that you can afford to pay, based on your monthly income, using the FinAid Calculator.  Additional information about consolidation can be found on the website of Northwest Education Loan Association (NELA).

Loan Forgiveness

If you teach elementary or secondary school you may be eligible for special deferment options and, in some cases, cancellation of a portion of your student loan debt. Eligibility requirements are available at the Department of Education.

  • For federal Stafford loan deferment or cancellation, contact your lender for application forms.
  • For federal Perkins loan deferment or cancellation, contact the school where you borrowed your loan; or the school's Perkins servicing agency. If you borrowed a Perkins loan at Stanford, forms are available from University Accounting Service.

Defaulting on Student Loans

Student loan borrowers in default do have options to repay their loans. Information is available from the Department of Education and FinAid.org.

Resolving Loan Repayment Disputes

If you are having a dispute with your servicer or another agency regarding repayment of your federal student loan, you may consider contacting the Federal Student Aid Ombudsman for assistance. You can reach the Ombudsman's office by phone at 877-557-2575 or by mail at this address:

U.S. Department of Education
FSA Ombudsman
830 First Street, NE
Fourth Floor
Washington, DC 20202-5144