The basic payment process
Most federal student loans are paid through the Federal Student Aid (FSA) portal or through your loan servicer's website. Your servicer is the company that manages your loan day-to-day — it is not the lender. You can find your servicer's name and contact information by logging into studentaid.gov with your FSA ID.
Payments are due on the date your servicer sets, usually the 15th or last day of the month. You can pay online, by phone, or by automatic bank transfer. Automatic transfer (called autopay) is the fastest way and often comes with a small interest rate reduction — typically 0.25 percent — if your servicer offers it.
Your monthly payment amount depends on your repayment plan. Federal loans offer several plans with different monthly amounts and payoff timelines. Private student loans have their own terms set by the lender, and those terms do not change based on your income or circumstances.
Key Takeaways
- You pay through your loan servicer's website or the Federal Student Aid portal, and your servicer's name appears on your loan documents and at studentaid.gov.
- Federal loans offer income-driven repayment plans that can lower your monthly payment, but you must select the plan yourself — you are not automatically enrolled.
- If you cannot afford your payment, contact your servicer before you miss one; forbearance and deferment can pause payments temporarily without defaulting your loan.
- Autopay saves money through interest rate reductions and removes the risk of forgetting a payment date.
- Private student loans do not have income-driven plans or pause options, so your payment terms are fixed from the start.
Finding your servicer and setting up payment
Log into studentaid.gov using your FSA ID (the same login you used to fill out the FAFSA). Under "My Aid," you will see a list of all your federal loans and the name of the servicer managing each one. Common servicers include Nelnet, Mohela, Navient, and Great Lakes.
Once you know your servicer, go to their website directly and create an account. You will need your Social Security number and loan account number (found on your loan documents or at studentaid.gov). From there, you can see your balance, interest rate, current payment amount, and due date.
If you have private student loans, contact the lender directly or check your loan documents for the payment website. Private loans do not appear on studentaid.gov.
Federal repayment plans and how they affect your payment
Federal student loans come with several repayment plan options. The Standard Repayment Plan sets a fixed payment amount and pays off your loan in 10 years. Other plans tie your payment to your income and can stretch repayment over 20 to 25 years.
Income-driven plans include the Revised Pay As You Earn (REPAYE), Pay As You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR) plans. Under these plans, your monthly payment is calculated as a percentage of your discretionary income — usually 10 to 20 percent depending on the plan. If your income is very low, your payment can be as little as $0 per month, though interest still accrues.
You choose your repayment plan when you first start repaying, but you can change plans at any time by contacting your servicer or updating your selection online. If you want an income-driven plan, you must request it; you will not be automatically enrolled. You will also need to recertify your income every year to keep your payment amount current.
What to do if you cannot afford your payment
If your payment is too high, your first step is to change your repayment plan. An income-driven plan will almost always lower your monthly payment compared to the Standard plan. Contact your servicer or log into your account to request a change — this takes a few days to process.
If even an income-driven plan is unaffordable, you have two temporary options: forbearance and deferment. Both pause your monthly payment for a set period. During forbearance, interest continues to accrue on unsubsidized loans. During deferment, the federal government pays the interest on subsidized loans, but interest still accrues on unsubsidized loans.
Forbearance is easier to get — you can request it online or by phone, and your servicer can grant it for up to three years total. Deferment has stricter rules and requires proof of hardship (unemployment, economic hardship, or enrollment in school at least half-time). Do not wait until you miss a payment to ask for either option. Contact your servicer as soon as you know you will have trouble paying.
Autopay and interest rate reductions
Setting up autopay means your servicer withdraws your payment automatically from your bank account each month on your due date. This removes the risk of forgetting a payment and triggering a late fee or default.
Most federal loan servicers reduce your interest rate by 0.25 percent if you enroll in autopay. This reduction applies to the life of the loan, so over time it saves you money. You can set up autopay through your servicer's website or by phone. You will need your bank account and routing number.
You can cancel autopay at any time if your circumstances change, though you lose the interest rate reduction if you do.
What happens if you miss a payment
A payment is late if it arrives after your due date. Your servicer will charge a late fee (usually $15 to $25) and report the late payment to credit bureaus, which damages your credit score. After 90 days of missed payments, your loan enters default.
Once in default, your entire remaining loan balance becomes due immediately. The federal government can garnish your wages, intercept your tax refund, and take other collection actions. Default also makes you ineligible for income-driven repayment plans or deferment.
If you have missed a payment or are about to, contact your servicer immediately. They can work with you on a payment plan, forbearance, or deferment before default occurs. If your loan is already in default, you can rehabilitate it by making nine on-time monthly payments over 10 months, after which the default status is removed from your credit report.
Private student loans and employer repayment programs
Private student loans work differently from federal loans. You pay the lender directly, not through a servicer. Your payment amount and due date are set in your loan agreement and do not change based on income. Private loans do not offer forbearance, deferment, or income-driven repayment plans.
Some employers offer student loan repayment assistance as a benefit. If your employer has this program, they typically pay a set amount toward your loans each month (often $100 to $300). This money goes directly to your lender and reduces the amount you owe. Check with your human resources department to see if your employer offers this benefit and how to enroll.
Frequently Asked Questions
Can I pay more than my monthly payment?
Yes. Extra payments go directly toward your principal balance and reduce the total interest you pay over the life of the loan. There is no penalty for paying more than required. Specify that extra money should go to principal when you make the payment, especially if you have multiple loans.
What if I have loans from multiple servicers?
Log into studentaid.gov to see all your federal loans and their servicers. You will need to set up accounts with each servicer separately and make payments to each one on their due date. Some servicers allow you to consolidate multiple loans into one, which gives you a single payment date and servicer.
Do I have to pay while I'm still in school?
For federal loans, you are not required to pay while you are enrolled at least half-time. Interest on subsidized loans does not accrue during school; interest on unsubsidized loans does accrue but you are not required to pay it. Private loans have their own rules — check your loan documents.
What is the difference between my servicer and my lender?
Your lender is the organization that gave you the money. Your servicer is the company that collects your payments and handles customer service. For federal loans, you do not deal with the lender after the loan is disbursed — you deal only with the servicer.
Can I change my payment due date?
Most servicers allow you to change your due date through your online account or by calling. This is useful if your due date falls before you get paid. The new date usually takes effect within one or two billing cycles.