Repayment of a Federal Loan is a very serious obligation. There are a number of repayment options available to help borrowers to meet their obligations.

Remember, you are required to make your student loan payments even if you:

  • Do not complete your education
  • Are not employed upon completion of your studies
  • Do not find employment in your field of study
  • Feel that the education you received did not meet your expectations
  • Do not receive a bill

You must make your loan repayments on time or it may have serious consequences. It may:

  • Damage your credit rating, which could impact your ability to borrow
  • Refer your account to a collection agency
  • Incur collection costs
  • Cause garnishment of your wages
  • Cause withholding of your state or Federal treasury payments (including federal tax refunds, Social Security benefits, etc.)
  • Cause a civil lawsuit, including court costs and legal expenses
  • Cause loss of deferment and forbearance entitlements and flexible repayment options
  • Cause loss of eligibility for further financial aid
  • Suspend your professional license

Repayment options

There are a number of repayment options available. You should discuss them with your lender to determine which will be the best for you:

  • Standard Repayment
  • Graduated Repayment
  • Extended Repayment
  • Income-Based Repayment
  • Pay As You Earn Repayment (PAYE)
  • Revised Pay As You Earn Repayment (REPAYE)
  • Income-Contingent Repayment
  • Income-Sensitive Repayment

For full details see the Department of Education Repayment webpages or American Student Assistance. You will always pay the least amount of interest under the Standard Repayment Plan.

Third Party Debt Relief

Students and Alumni should be aware that some third party debt relief companies are misusing University and Department of Education logos and seals, attempting to give the impression that they are working with or on behalf of your University, and charging fees to help you manage your debt, in some cases without payments being made to reduce your balance.

The Department of Education do not charge for debt relief or advice and students should contact their loan servicer for further advice regarding their repayment options, loan deferment or forbearance. You can find your servicer by logging on to the National Student Loan Database. The RNCM does not partner with any debt management company.

We are not aware of this affecting any RNCM students but you should remain vigilant and wary of communications of this nature. If you have any concerns you should contact your loan servicer in the first instance.

Also in this section...