Repaying Your Student Loans
Once you are no longer enrolled in and attending at least six credit hours, repayment of your federal student loans begins after a six-month grace period. During the grace period, you will receive repayment information from the loan servicer, including the first payment due date (interest accrues on both loans but payments are not enforced).
Student loan repayment information as well as information on the servicer assigned to your student loans can be found at Federal Student Aid: Student Loan Repayment.
Also see Federal Student Aid: Parent PLUS Loans for repayment information.
Repayment Plans
The Federal Direct loan program offers several repayment plans that are designed to meet the different needs of individual borrowers. Generally, students have 10 to 25 years to repay their loan, depending on the repayment plan that they choose.
Detailed information on repayment options is provided during the mandatory Entrance Loan Counseling and Exit Loan Counseling sessions.
Sample Loan Repayment Schedule
Examples of typical Federal Direct Loan and Federal Parent PLUS Loan Repayment plans to illustrate the differences in monthly payments based initial loan debt and choice of repayment plan. These examples do not include all the repayment plan options and are for estimation purposes only. To get a better idea of your estimated monthly repayment options based on your specific loan debt, use the Department of Education’s online calculator. Also see Federal Student Aid, Repayment Plans.
Payments in each of the following repayment options are calculated using the fixed interest rate of 4.99%.
Repayment Option: Standard
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 | $50 | 120 | $4,230 |
| $5,500 | $60 | 120 | $7,163 |
| $10,500 | $114 | 120 | $13,674 |
| $17,000 | $184 | 120 | $22,139 |
| $25,000 | $271 | 120 | $32,558 |
| $40,000 | $434 | 120 | $52,093 |
| $57,500 | $624 | 120 | $74,883 |
Repayment Options: Graduated
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 | $22 – $65 | 120 | $4,836 |
| $5,500 | $34 – $102 | 120 | $7,599 |
| $10,500 | $65 – $194 | 120 | $14,508 |
| $17,000 | $105 – $315 | 120 | $23,490 |
| $25,000 | $154 – $463 | 120 | $34,544 |
| $40,000 | $247 – $741 | 120 | $55,270 |
| $57,500 | $355 – $1,065 | 120 | $79,451 |
Repayment Option: Extended Plan
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 – $25,000 | Not available at these amounts. |
| $40,000 | $246 | 300 | $73,690 |
| $57,500 | $353 | 300 | $105,930 |
Income Driven Repayment Option: Saving on a Valuable Education (SAVE)
- Assumed marital status of single,
- Adjusted Gross Income of $30,000,
- Household size of 1, and
- an Iowa resident.
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 | $0 – $100 | 156 | $4,584 |
| $5,500 | $0 – $131 | 180 | $7,657 |
| $10,500 | $0 – $204 | 228 | $16,085 |
| $17,000 – $57,000 | $0 – $204 | 240 | $17,058 |
Income Driven Repayment Option: Saving on a Valuable Education (SAVE)
- Assumed marital status of married,
- Adjusted Gross Income of $30,000 each student and spouse (total $60,000),
- Household size of 3, and
- an Iowa resident.
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 | $34 – $114 | 60 | $4,162 |
| $5,500 | $34 – $155 | 84 | $6,981 |
| $10,500 | $34 – $225 | 120 | $14,891 |
| $17,000 | $34 – $342 | 168 | $26,093 |
| $25,000 | $34 – $450 | 204 | $40,911 |
| $40,000 – $57,500 | $34 – $534 | 240 | $57,258 |
Repayment Option: Pay As You Earn (PAYE) and Income-Based Repayment (IBR) Plan
- Assumed marital status of single,
- Adjusted Gross Income of $30,000,
- Household size of 1, and
- an Iowa resident.
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 – $5,500 | Not available at these amounts. |
| $10,500 | $68 – $114 | 144 | $14,815 |
| $17,000 | $68 – $184 | 1692 | $28,235 |
| $25,000 | $68 – $271 | 240 | $42,026 |
| $40,000 – $57,500 | $68 – $347 | 240 | $44,014 |
Repayment Option: Pay As You Earn (PAYE) and Income-Based Repayment (IBR) Plan
- Assumed marital status of married,
- Adjusted Gross Income of $30,000 each student and spouse (total $60,000),
- Household size of 3, and
- an Iowa resident.
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 – $17,000 | Not available at these amounts. |
| $25,000 | $189 – $271 | 132 | $34,294 |
| $40,000 | $189 – $434 | 180 | $64,098 |
| $57,000 | $189 – $624 | 240 | $100,337 |
Repayment Option: Income-Contingent Repayment (ICR) Plan
- Assumed marital status of single,
- Adjusted Gross Income of $30,000,
- Household size of 1, and
- an Iowa resident.
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 | $22 – $28 | 228 | $5,769 |
| $5,500 | $35 – $45 | 228 | $9,065 |
| $10,500 | $67 – $85 | 228 | $17,306 |
| $17,000 | $109 – $138 | 228 | $28,019 |
| $25,000 | $160 – $203 | 228 | $41,204 |
| $40,000 | $256 – $325 | 228 | $65,927 |
| $57,500 | $257 – $485 | 252 | $103,269 |
Repayment Option: Income-Contingent Repayment (ICR) Plan
- Assumed marital status of married,
- Adjusted Gross Income of $30,000 each student and spouse (total $60,000),
- Household size of 3, and
- an Iowa resident.
| Initial debt when you enter repayment | Per Month | # of Months | Total Repaid |
| $3,500 | $32 – $34 | 144 | $4,813 |
| $5,500 | $50 – $53 | 144 | $7,564 |
| $10,500 | $96 – $102 | 144 | $14,440 |
| $17,000 | $155 – $165 | 144 | $23,380 |
| $25,000 | $228 – $242 | 144 | $34,382 |
| $40,000 | $365 – $388 | 144 | $55,011 |
| $57,500 | $525 – $557 | 144 | $79,079 |
Inceptia Provides Loan Repayment Assistance
You’re not alone when it comes to student loans. Hawkeye Community College has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you if your loan(s) become delinquent. Inceptia is not a collection agency. We’ve partnered with them to help you explore a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you find answers to your questions and solutions to your issues.
Consequences of Default
You are responsible for repaying your student loans even if you do not graduate, have trouble finding a job after graduation, or if you are not satisfied with your education. If you do not make any payments on your student loans for over 270 days and do not make special arrangements with your lender to get a deferment or forbearance, your loans will go into default. Defaulting on your student loans has serious consequences, such as:
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Your loans may be turned over to a collection agency at which point you are now responsible for the very high collection agency fees.
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Your wages may be garnished and you can be sued for the entire amount of your loan.
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Your federal and state income tax refunds may be intercepted or your Social Security benefit payments can be withheld.
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Your defaulted loans will appear on your credit record. A bad credit record can affect your ability to purchase a car, home, and credits cards. It may also affect your ability to find a job.
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You may lose eligibility to receive any more federal financial aid until you make proper arrangements.
Postponing Repayment
The two options available for postponing repayment of your student loans are deferments and forbearances. Stay in contact with the lender, they will help you determine if you are eligible for a deferment or forbearance BEFORE you default.
Deferments
The lender allows you to postpone repaying the principal of your loan for a specific period of time, making your debt more affordable. Contact your lender for more specific information regarding this process.
Also see Federal Student Aid: Student Loan Deferment.
Forbearances
During forbearance, the lender allows you to postpone or reduce your payments, but the interest charges continue to accrue. Contact your lender for more specific information regarding this process.
Also see Federal Student Aid: Student Loan Forbearance.
Getting Out of Default
To get out of default, you need to make arrangements with your servicer or lender to repay the loan. Once you have made six regular payments, you will be eligible for additional Title IV aid. After you have made twelve regular payments and applied for and received "rehabilitation", you will no longer be considered in default. At this time, record of the default will be removed from the reports to credit reporting bureaus.
For information about your options, contact the servicer of the loan and/or the original lender. If you do not know who currently is servicing your loan, create an account with Federal Student Aid.