Understanding Repayment

A loan is money you borrow and must pay back with interest. Interest is a loan expense charged for the use of borrowed money to the borrower (the student). Students who decide to take out a loan for their educational expenses should be sure they understand the terms and conditions of the loan and what repayment options are available to them.

For more information on the repayment process, please visit StudentAid.ed.gov: Understanding Repayment.

Federal loans consist of the following:

*Note: Students with Federal Perkins Loans from UMBC may visit Student Business Services for more information on repayment.


Repayment: What to Expect

Students with Alternative (Private) Loans may contact their lender for more information.

Repayment Plans

The U.S. Department of Education offers several plans to assist student borrowers with their loan repayment. Students will enter repayment for Perkins and Stafford loans once they graduate or if they drop below half-time enrollment for a semester (less than six credits enrolled). Once you enter repayment, most students will be given a one-time grace period to allow them to get financially prepared to pay back the loans and to select a plan.

Repayment plans vary in terms of length and minimum payment required according to the individual student's loan borrowing. To review the repayment plans available, please visit StudentAid.ed.gov: Repayment Plans. Students interested in estimating their federal student loan payments are welcome to use the Repayment Estimator. It is important that students contact their lender/loan servicer if they are having trouble making payments. Students with extenuating circumstances may have alternative repayment options available to them.