Federal Loan Repayment Plans
Federal Loan Repayment Plans
Deferment/Forbearance
Delinquency/Default

- Deferment is a period in which repayment of federal student loans is temporarily postponed or waived, if a borrower meets certain requirements. If a borrower is enrolled at least half time in an eligible undergraduate, graduate, or professional program they may qualify for deferment. Borrowers who experience an economic hardship or are unemployed, may also apply for deferment while in loan repayment for a time period up to three years.
- More information about deferment and the deferment forms can be found at https://studentaid.gov/manage-loans/lower-payments/get-temporary-relief/deferment#understand-eligibility-for-a-deferment
- If you are returning to school at Iowa State and will be enrolled at least half-time in a degree program, you may qualify for a loan deferment. The Office of the Registrar can certify your enrollment at Iowa State University. Submit all In School At Least Half-Time Deferment forms to:
- A discretionary forbearance is determined by the loan servicer. A borrower may request a discretionary forbearance for either a financial hardship or illness.
- The borrower is serving in a medical or dental internship or residency program and meets other specific requirements
- The total amount owed each month for all student loans is 20% or more of your total monthly gross income (additional conditions may apply)
- The borrower is serving in a national service position for which you received a national service award
- The borrower is performing teaching service that would qualify for teacher loan forgiveness
- The borrower qualifies for partial repayment of student loans under the U.S. Department of Defense Student Loan Repayment Program
- The borrower is a member of the National Guard and have been activated by a governor but is not eligible for a military deferment
- Are required to repay the entire unpaid amount of your loan immediately
- May be sued by the federal government, which may take all or part of your federal and state tax refunds
- May have your wages garnished by the federal government, so that your employer is required to send part of your salary to pay off your loans
- May be required to pay a reasonable amount of collection costs and fees
- Will be reported to credit bureaus, which will hurt your credit score
- May be denied a professional license
- Will lose your eligibility for federal student aid as well as help under most other federal benefit programs
- Will lose your eligibility for loan deferments
- May have your Social Security benefits garnished
- Understand your borrowing
- Know the type of loan you are borrowing including the fees and interest associated with the loan.
- Read the promissory note (MPN). The promissory note is a legally binding document. By signing the MPN, you are agreeing to repay the loan according to the terms in the MPN. All loans received must be repaid even if you do not graduate or find a job in your field of study.
- Manage your borrowing
- Create a budget every year to determine how much you really need to borrow
- Do not accept your loans until you know you need them
- Inquire about monthly payment plan options with the university
- Contact the Office of Student Financial Success to discuss concerns you have about borrowing
- Track your loans
- Determine your loan servicer
- Set-up an account with your loan servicer to track your loans
- Keep records of your loans that include:
- Correspondences from servicers
- Principle amount
- Interest rate
- Servicer contact information
- Requests for payment plan changes, deferments or forbearances
- Documentation submitted to your loan servicer
- Other pertinent loan information
- Stay in touch with your loan servicer
- Contact your loan servicer when any of the following occur:
- Your demographic information changes
- You graduate, transfer, withdraw or drop below half-time enrollment
- You need help making your monthly payments
- Contact your loan servicer when any of the following occur: