5 Must DOs Before Repaying Your Student Loans

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Almost time to start paying back your student loans?  Contrary to popular belief, your student loan payments don’t have to stop you from living your life. You just have to weigh your options and find a strategy that works within your budget. Here are some steps to get you started.

1. Compare monthly payment amounts

The amount you pay each month toward your student loans will depend on the repayment plan you choose. If you take no action, you will be automatically enrolled in the 10-year Standard Repayment Plan. If you don’t think you can afford that amount or you want a lower monthly payment, consider switching to an income-driven repayment plan, where your monthly payment could be as low as $0 per month. Just know that when you make payments based on your income your monthly payment amount may be lower, but you will likely pay more in total over a longer period of time.

Use our repayment calculator to compare the different repayment options.

repayment estimator output

Calculate

TIP: If you’re interested in the Public Service Loan Forgiveness Program, you should apply for an income-driven repayment plan and submit an Employment Certification Form.

2. Decide whether to consolidate

If you borrowed federal student loans before 2011, you may need to consolidate any FFEL loans into the Direct Loan program before you can qualify for the better income-driven repayment plans or Public Service Loan Forgiveness. You may also want to consolidate if you have multiple loans and/or servicers and want a single monthly payment. The application takes about 10 minutes.

Consolidate my Loans

3. Choose an affordable repayment plan

If you decide to consolidate, you will choose a repayment plan from within the consolidation application. If you’d like to choose an income-driven plan, choose the Pay As You Earn Plan. It’s the best plan available, and if you don’t qualify for it, your servicer will put you on the next best income-driven repayment plan.

If you aren’t going to consolidate and you’d like to enroll in one of the income-driven repayment plans, learn how to choose the right income-driven repayment plan and apply here. The application takes about 10 minutes.

Choose recommended option in IDR app

Apply for an income-driven repayment plan

If you’re interested in a plan other than the standard or one of the income-driven plans, contact your servicer to ask how to enroll.

 4. Set up your payments

You will never pay the U.S. Department of Education directly. In most cases, federal student loan borrowers will make payments to one of our loan servicers. Loan servicers work on behalf of the U.S. Department of Education to collect your payments and provide customer service. If you don’t know who your loan servicer is, find out here.

Your loan servicer will contact to let you know when your first payment is due and how to make a payment, so it’s very important that you provide your servicer with updated contact information.

TIP: To simplify the repayment process, consider enrolling in auto debit and your payments will be automatically taken from your bank account each month. As an added bonus, you get a 0.25% interest rate deduction when you enroll. Ask your servicer how to enroll.

5. Know who to contact if you need help with your student loans

Beware of student loan scams.  You never have to pay for help with your student loans. As you’re researching repayment and forgiveness options, make sure you’re getting information from trusted sources, like .gov websites or your servicer’s website. The government and your servicer will never charge application or maintenance fees, so if you’re asked to pay, walk away.

If you have questions or need help, contact your servicer.

TIP: Save your servicer’s contact information in your phone so you can access it when you need to.

Nicole Callahan is a Digital Engagement Strategist at the U.S. Department of Education’s office of Federal Student Aid.

Image by Getty Images

8 Student Loan Tips for the Class of 2016

8 student loan tips for the Class of 2016

Nothing says, “Welcome to adulthood” quite like getting your first student loan bill in the mail. If student loans are your reality, here are some tips that may help you (from someone who is going through this too).

1. Don’t ignore your student loans!

I think everyone can agree that student loans are no fun to pay back, but ignoring them can have serious consequences (and it won’t make them go away.) If you’re worried about your student loans or don’t think you can afford your payments, contact us for help. No matter what your financial situation is, we can help you find an affordable repayment option. For many, that could mean payments as low as $0 per month.

2. Set a budget.

Life after graduation gets real, real fast. To make a plan to tackle your student loans, you need to understand what money you have coming in, and what expenses you have going out. If you haven’t already, it’s important that you create a budget. This will help determine your repayment strategy. Here are some budgeting tips to help you get started.

3. Choose an affordable payment amount.

There is no one-size-fits-all approach to paying back student loans. The key question you need to answer is: Do you want to get rid of your loans quickly or do you want to pay the lowest amount possible per month?

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Coming OUT for Safe Schools

Cross-posted from the Stopbullying Blog.

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School continues to be a dangerous place for lesbian, gay, bisexual, and transgender (LGBT) youth.   A 2014 study by the Gay, Lesbian & Straight Education Network (GLSEN) found that 65% of LGBT students heard homophobic remarks frequently or often, 56% of LGBT students reported personally experiencing LGBT-related discriminatory policies or practices at school, and 33% of LGBT students were physically harassed (e.g., pushed or shoved) in the past year because of their sexual orientation.

“Despite increased public acceptance of LGBT people in general, many school campuses remain toxic environments for LGBT students, contributing to higher rates of suicide, depression, homelessness and HIV infection,” said Los Angeles LGBT Center CEO Lorri L. Jean.

In 2013, the Los Angeles LGBT Center and Los Angeles Unified School District (LAUSD) in coordination with other community partners, including the GSA Network, developed and launched OUT for Safe Schools™ to help make schools safer for LGBT students. More than 30,000 rainbow badges were provided to LAUSD teachers, administrators, and staff to wear voluntarily that proudly identify themselves as allies and protectors of students who are LGBT.

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Teachers Advocate for Removal of Barriers and Fear for Undocumented Students

Dominguez with students in her classroom. (Photo courtesy Alice Dominguez)

Dominguez with students in her classroom. (Photo courtesy Alice Dominguez)

Two words dominated the conversation at ED’s Tea with Teachers last week on the topic of supporting undocumented students: fear and hope. Educators balanced their concerns for their undocumented and mixed-status students, while acknowledging the hope that they ultimately deserve. During the tea, I couldn’t help but think of the student from my school district, who was sitting in a jail cell rather than a classroom, feeling those same emotions.

Wildin David Guillen Acosta was taken from his front yard on his way to his Durham, N.C., school in January, while his mother watched helplessly from their home. He would later join nine other students from North Carolina and Georgia whose parents and classmates also witnessed their arrests from bus stops, homes, and neighborhoods. While The Department of Homeland Security has designated schools with sanctuary status, teachers across the Southeast are arguing that ICE raids are threatening our students’ daily lives as their justifiable anxieties are occupying what could otherwise be devoted to their academic pursuits.

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So You Want to be an Intern at ED

Marina Kelly is an intern in the International Affairs Office at the U.S. Department of Education. (Photo: Department of Education)

Marina Kelly is an intern in the International Affairs Office at the U.S. Department of Education. (Photo: Department of Education)

Although it can seem a little daunting at first, interning in Washington, D.C. is one of the most formative experiences a student can have. After interning in both the private and public sector, I have found that some practices are best practices, no matter where you intern. Here are some tips to get the most out of your internship experience:

Ask Questions

I was somewhat bewildered my first week at the U.S. Department of Education (ED) by the unending acronyms used to describe everything from organization names, to standardized tests, to new laws. When it got to the point where there were whole sentences I could not understand, I realized I should start asking questions – and did!

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Thinking about the Meaning of ‘Green’ as We Recognize Schools, Districts, and Colleges this Earth Day

U.S. Department of Education Green Ribbon Schools (ED-GRS) began in 2011-2012, recognizing 78 green schools. In 2012-2013, ED added a District Sustainability Award and honored 64 schools and 14 districts. The 2013-2014 cycle had 48 school honorees and 9 district honorees. 2014-2015 brought 58 schools, 14 districts, and nine first-ever Postsecondary Sustainability Award recipients.

For the fifth consecutive year, to celebrate Earth Day, the U.S. Secretary of Education announced the 2016 U.S. Department of Education Green Ribbon Schools (ED-GRS), including District Sustainability Awardees and Postsecondary Sustainability Awardees. Joined by Managing Director of the White House Council on Environmental Quality Christy Goldfuss, Secretary King celebrated the 47 schools, 15 districts, and 11 postsecondary institutions chosen this year for their leadership in reducing environmental impact and utility costs, promoting better health for students and staff, and offering effective sustainability education.

As I think reflect on these first five years of our award, I sometimes wonder if “green” was the best choice of name, since it leads to occasional misinterpretation. To be clear, we define a “green” or “sustainable” school, as a healthy, efficient learning environment where school budgets are not drained by utility costs and students can use their very school building (whether older or new) as a learning tool.

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Nature-Based Curriculum a Hit with Students and Staff Alike

Students gather around a tree as part of the school's nature-based curriculum

Students gather around a tree as part of the school’s nature-based curriculum

Environmental education is an integral part of everyday life at Redtail Ridge Elementary School in Minnesota’s Prior Lake-Savage area school district. On any given day you could find: math students using trees to study circumference, students using their senses to reinforce a lesson on adjectives, kindergartners sorting man-made verses natural objects, writing nature poetry, and investigating positive and negative numbers by recording the daily temperature.  Embedding environmental education into our daily routine is a reflection of the community that fills the building, viewing the outdoors as an extension of our classroom, and a constant effort to replace existing lessons with an environmental focus.

From a supportive administrator, to our diligent custodial staff, willing classroom teachers, and tireless support staff, we are all working towards our philosophy of using the environment to educate children. The willingness to help each other and draw on each other’s strengths is what makes us unique. At any time you might see a fifth grade classroom taking a kindergarten class snowshoeing and then the next day going again with a group of second graders.

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White House Science Fair Presents Once-in-a-Lifetime Opportunity For First-Generation Students

Pictured (Left to right): Melody Kwan , LMIT InvenTeam advisor and Spanish Teacher at Baruch College Campus High School; Stephen Mwringa; Amro Halwah; Si Ya (Wendy) Ni and Dr. Elisabeth Jaffe.

Pictured (Left to right): Melody Kwan , LMIT InvenTeam advisor and Spanish Teacher at Baruch College Campus High School; Stephen Mwringa; Amro Halwah; Si Ya (Wendy) Ni and Dr. Elisabeth Jaffe.

Opportunity is perhaps the greatest possibility of the American promise. For two New York City high school  students who came to America less than ten years ago knowing very little English, opportunity led them to the White House Science Fair where they presented their subway vacuum cleaner project to President Obama with their classmate Si Ya “Wendy” Ni, a first generation college student.

One of the students, Amro Halwah, immigrated to the U.S. at the age of 13. He started school in the U.S. as an 8th grader and is currently a senior at Baruch College Campus High School. When he was young, he hated learning because he viewed it as only memorizing facts that he promptly forgot after taking a test.

While in school in New York, however, he started down a different path. He participated in several hands-on projects that unleashed his creativity and gave him the opportunity to engage in independent learning. When he got the chance to join the L-MIT Baruch InvenTeam this year, his desire to learn and contribute to the invention of last year’s seniors really excited him.

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AfAmWomenLead Initiative Offers Diverse Cultural Experiences for Women and Girls of Color Nationwide

The African American Women Lead (AfAmWomenLead) Initiative was established by the White House Initiative on Educational Excellence for African Americans as a unique opportunity to harness the collective impact of the nation’s largest women civic organizations. AfAmWomenLead partners have committed to meet a monumental goal — one million hours of service with Black women and girls across the nation in 2016. AfAmWomenLead provides a platform for organizations, institutions, individuals, and other partners interested in engaging and supporting the development of Black women and girls.

Nationwide, women and girls of color celebrated the humanities and cultural experiences during Women’s History Month. (Photo collage courtesy Venicia Gray)

Nationwide, women and girls of color celebrated the humanities and cultural experiences during Women’s History Month. (Photo collage courtesy Venicia Gray)

To celebrate the important roles women and girls play in history, AfAmWomenLead choose March—Women’s History Month—for a national day of service surrounding cultural experiences and exploration by participating in Smithsonian magazine’s Museum Day Live!

The Smithsonian, a key AfAmWomenLead partner, presented a special edition of its magazine’s Museum Day Live! To, “inspire women and girls of color in underserved communities.” Museum Day Live! extends participating cultural centers zoos, aquariums, and museums across the country to offer free, ticketed admission. Museum Day Live! had an incredible impact and included more than 520 partnering museums nationwide in every state and the District of Columbia.

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The Key to Our Success? A Well-Rounded Curriculum, Each and Every Day

When I first came to Acacia Elementary School as the turnaround principal in 2003, I noticed three things: first, we had excellent teachers – but student performance was struggling and parent involvement was lagging. While many struggling schools in similar situations make the decision to boost up their reading and math interventions at the expense of classes like art and music, we did not.

Acacia first graders have talent! They performed songs for a production of 'Stone Soup'. The arts are an integral part of the well-rounded curriculum. (Photo courtesy Christine Hollingsworth)

Acacia first graders have talent. They performed songs for a production of Stone Soup. The arts are an integral part of the well-rounded curriculum. (Photo courtesy Christine Hollingsworth)

Walk through our school today and you’ll see monthly special events with standing-room only attendance; kindergarteners excited to apply what they learned in reading class to P.E., like using patterns, for example; and a third grade music class where students are learning about beats, syllables, and counts so they can write powerful haikus in their writing classes.

While other districts debated whether to cut classes like music and art, the Washington Elementary School District Governing Board stood up for us because they understood that these “specials” are vitally important to the whole child. And our board has seen that as a result of that investment, students are doing better than ever.

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ED Hosts First-Ever Educator Equity Lab

The first-ever Educator Equity Lab was held on March 29th at Jackson State University in Mississippi, where more than one hundred education stakeholders made commitments to ensuring equal access to excellent teachers for the state’s students of color and students from low income backgrounds.

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The Lab was part of the Department of Education’s broader efforts to support states in closing persistent nationwide “equity gaps” in access to great teachers. Last fall, then-Secretary Arne Duncan announced the approval of the first batch of state plans submitted under the Excellent Educators for All Initiative. And, he tasked the Department’s Teaching and Principal Ambassador Fellows with leading a series of labs to help with their implementation.

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No, You Won’t Be Arrested For Falling Behind On Your Student Loans

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Today, more than ever before, a college diploma or job-training credential is one of the best investments you can make in your future. By some estimates, a bachelor’s degree is worth an average of a million dollars over the course of your lifetime.

But college also has never been more expensive, and far too many Americans are struggling to pay off their student loan debt.

Maybe you haven’t quite landed that dream job in your field of study yet. Or you decided to go into public service instead of taking the highest-paying offer. Your reward for investing your time and money in the skills and knowledge needed to secure your future shouldn’t be a sky-high monthly payment.

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