Loan Repayment

Understanding Your Responsibilities

As a US Federal Direct Loans borrower, it is important to be aware of your responsibilities once your circumstances change. This could include completing your studies, withdrawing from your programme, or dropping below half-time enrolment.

Federal Student Loans are borrowed funds and must be repaid in line with the terms set out in your loan agreement. Taking the time to understand how your loans work will help you manage repayment more confidently when the time comes.

Exit Counselling

All borrowers of Federal Direct Loans are required to complete Exit Counselling when they graduate, withdraw, or fall below half-time study. Exit Counselling is a short online process provided by the US Department of Education. It is designed to help you prepare for repayment and understand what to expect next.

During Exit Counselling, you will receive information about:

• Your rights and responsibilities as a borrower
• The terms and conditions of your loans
• The different repayment options available to you
• How interest accrues and how loans are managed
• What to do if you experience financial difficulty
• The potential consequences of missing repayments

You should complete Exit Counselling as soon as you are notified by the Federal Aid Team and keep a copy of your confirmation for your records.

Loan Repayment

While you are studying at least half-time, you are not usually required to make loan repayments. However, your loans will enter repayment after your grace period ends, or as outlined in your loan terms. When and how you repay will depend on the type of loan you have and the regulations in place at the time it was issued. It is important that you understand your repayment schedule and make payments on time.

For more detailed guidance on repayment plans, deferment, forbearance, or consolidation, you should visit the Federal Student Aid website or speak directly with your loan servicer. 

The Federal Student Aid webpage also has an estimate calculator where you can calculate your estimated loan repayments.

Keeping Your Details Up to Date

Once your studies end or your enrolment changes, it is important to make sure your loan servicer has your latest contact details, including your address, email, and phone number. You are responsible for keeping both the University and your loan servicer informed of any updates to your contact information, enrolment status, or expected completion date.

Please note that not receiving communication from your loan servicer does not remove your obligation to repay your loans.

Further Information

The Federal Aid Team is here to offer general guidance on US Federal Direct Loans. However, you are ultimately responsible for understanding and meeting the terms of your loan. For the most up-to-date information on repayment, borrower responsibilities, and Exit Counselling, please visit the Federal Student Aid website or contact your loan servicer directly.