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Direct PLUS, Subsidized, and Unsubsidized Loans – Servicing and Repayment FAQ



Q.  Who will service the Direct Loans?


A.  At the time of repayment, the Department of Education will assign the borrower to one of its servicing agencies. 
To determine who your loan servicer is, you can look it up on www.nslds.ed.gov or call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243; TTY 1-800-730-8913).


Q.  Will interest accrue on my subsidized loan during the grace period before repayment begins?


A.  The grace period is the six month timeframe in which you are not enrolled or your enrollment status drops below part-time. For students recieving a first-time Direct Subsidized Loan with a first disbursement on or after July 1, 2012, and before July 1, 2014, the interest subsidy during the grace period has been eliminated.

 

Q.  Do I qualify for the Public Service Loan Forgiveness Program?


A.  All Direct Subsidized and Unsubsidized Loans qualify for the Public Service Loan Forgiveness Program provided the borrower meets other eligibility requirements.  FFELP Stafford loan borrowers may be eligible if they consolidate their loans through the Direct Loan program. 
For more information on Loan Forgiveness Programs/Cancellations, please click here


Q.  What if some of my federal student loans are serviced by a lender/guarantor and another part of my loans are serviced through the Department of Education?


A.  This is a situation that many of our students will face.  If you have previously received FFELP loans, you will now have loans through both FFELP and Direct Lending.  If you would like to make payments to one source once repayment starts, you must take out a federal consolidation loan which will combine both your FFELP and Direct Lending loans into a single loan.  Information pertaining to federal consolidation can be found online through the Department of Education’s Web site


Q.  What if my loans are not consolidated? 


A.  For all loans received under FFELP, you will repay a private lender or the designated loan servicer that made the loan.  For all loans under DL, you will make payments to one or more of the Direct Loan Servicing Centers.  Without a consolidation loan, you must make separate monthly payments to each servicer.  For more information, you can use your Federal Student Aid PIN to access the National Student Loan Data System (NSLDS) Student Access Web site at www.nslds.ed.gov.


Q.  How does the Federal Direct Consolidation process work?


A.  Information pertaining to the federal consolidation process can be found online through the Department of Education’s Web site.


Q.  What type of repayment plans are offered through Direct Lending?


A.  When the time comes to repay your student loans, you can pick a repayment plan that caters to your financial needs.  The repayment plans available under Direct Lending can be found on the Department of Education’s Web site


Q.  How can I keep track of my Federal Student Loans?


A.  Keeping up with your Federal Student Loans is a huge responsibility and managing your debt is a crucial part of having a successful financial future.  The National Student Loan Data System (NSLDS) Student Access Web site, www.nslds.ed.gov, provides a central database for student aid and La Salle University strongly recommends using the NSLDS Web site in keeping track of your financial obligations. The Web site allows students to view their information from schools, guaranty agencies, the Direct Loan program, as well as other programs, and can be accessed with your Federal Student Aid PIN; the same PIN used when electronically signing MPN or when completing your FAFSA.  A duplicate PIN can be sent to you at www.pin.ed.gov.


We love questions. E-mail us at finserv@lasalle.edu.