Student Loan Repayment Options:

Make a payment

Student loans are due in full at the time of default. Meeting that financial obligation can be challenging, so we offer a variety of ways for you to get back on track.

Remember, by repaying your debt you avoid many of the collection activities we are required, by law, to perform. And you enjoy certain benefits.

• You can be eligible for more student aid.
• Your state and federal tax refunds or other federal payments will not be taken.
• You avoid having your wages garnished.
• You pay less interest and fees.

You can find a repayment option that will work for you by calling EdFund at 800.367.1589.

Here are some options to consider:

Payment in Full

Provides the most immediate benefits and can save you the most money over the life of your loans.

Benefits of payment in full:

• You pay the least overall because less interest accrues.
• You may avoid the expense of collection costs if you pay in full within the first 60 days of default.
• Your credit report is updated faster than through other programs.

Loan Rehabilitation

The Federal Loan Rehabilitation Program is an excellent benefit we are proud to offer our eligible borrowers. Rehabilitating your defaulted student loan involves setting up and maintaining a repayment agreement with EdFund. Once you have made nine on-time monthly payments, your loans may be eligible for rehabilitation. When you rehabilitate, your loans are transferred to a lender and any negative credit remarks reported by EdFund/CSAC will be deleted from your credit history.

Effective August 14, 2008, loans can only rehabilitated once, so it is very important to maintain your good payment status with your new lender. If you are interested in this program, please contact one of our account specialists to set up your repayment agreement. You can also complete this process online.

Interest Only

Even if your monthly payment doesn’t qualify you for loan rehabilitation, and will not ensure you avoid tax offset or administrative wage garnishment, it is still wise to keep interest charges from accumulating on your debt.  

Consolidation

Replaces several loans with a single loan, with one interest rate and one repayment schedule. To learn more about consolidation or to discuss your repayment options, call our staff at 800.367.1589. Please be prepared with your:

• EdFund account number or Social Security number
• Current address
• Telephone number
• Financial information including income and expenses