The first step to managing your education debt is knowing the details of your loan portfolio—including knowing who you borrowed from (your lender), the types of loans you borrowed, the dates of disbursement, and who you will send payments to (your servicer). If you kept good records, you already know these details. However, don’t despair if you lost track of your loan information.
There are several ways to track your current and past borrowing:
Financial Aid Award Notification Letters – Available on Student Self-Service.
Your Loan Servicer's website portal.
Federal Student Aid Dashboard (FSA Dashboard) is a confidential database that is maintained by the U.S. Department of Education. It is the official source of information about your federal student loans. View this handout to learn how to access the FSA Dashboard.
If you have paid off any of your student loans or find an error in the information reported, please notify the financial aid office at financial.aid@rosalindfranklin.edu
A loan servicer is a company that Federal Student Aid (FSA) assigns to handle the billing and other services on your federal student loan on FSA's behalf, at no cost to you. Your loan servicer will work with you on repayment options (such as income-driven repayment plans and loan consolidation) and will assist you with other tasks related to your federal student loans.
Keep your contact information up to date so your loan servicer can help you stay on track with repaying your loans. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.
You can find the contact information for your loan servicer(s) here. To find out who your loan servicer is, you can access your Federal Student Aid Dashboard at studentaid.gov, or you can call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.
Whom to Contact for Loan Information
If your loan is for the current or upcoming school year, contact your school’s financial aid office directly for information about;
loan status;
the time frames for canceling all or part of your loan or loan disbursement; and
loan disbursement amounts and timing.
Only your school's financial aid office can provide this information.
If your loan was disbursed in a past school year and you’re still in school, keep your contact information up to date with your school and contact your loan servicer when you;
withdraw;
graduate;
drop below half-time enrollment; or
stop going to school.
If you’re no longer in school, contact your loan servicer when you;
change your name, address, or phone number;
need help making your loan payment;
have a question about your bill; or
have other questions about your student loan.
Private Loan Servicer(s)
If you have non-federal loans, you'll need to check your credit report to identify the loans or contact your private loan servicer for a list of those loans, so that you have a complete picture of your student loan debt, You can check your credit report at annualcreditreport.com, a truly free credit report that does not impact your credit score to obtain.
If private education loans are a part of your debt portfolio, you’ll find that the repayment of these loans may differ from that of your federal debt and could include higher and/or variable interest rates, lack forgiveness programs, and have limited postponement options and/or reduced control over the amount of the required monthly payment.
Federal and private student loans are different because private education debt is not guaranteed by the federal government or regulated by the legislation that governs federal loans. The terms and conditions of private loans are set by the lender. In fact, most of the repayment options discussed in this booklet are applicable only to your federal student loans.
Debt Management Strategies for Private Student Loans
Two possible strategies to consider for repayment of private loans are detailed below.
Forbearance
A repayment strategy medical graduates who have both federal and private loans can use is to request a Mandatory Medical Residency Forbearance on their federal loans—causing the required payment on the federal loans to be zero. This postponement of payments for federal loans allows aggressive payments to be made toward private debt. This strategy is most beneficial if the interest rates on private loans are higher than the rates on the federal debt. In fact, paying off loans with a high-interest rate quickly is a wise strategy. However, interest rates aside, even if the rate of the private debt is not higher than that of the federal loans, the strategy of postponing federal payments may simply free up your cash flow and allow you to make your private loan’s required monthly payments during residency.
Consolidation/Refinancing
Another repayment strategy is to find a private consolidation loan to refinance some or all of your private student debt. The first step to do this is to shop around for a loan with the best terms. You can start your search at your school’s financial aid office.
Your chance of obtaining a better interest rate on the new loan increases if your credit score has improved since you originally received the private loans or if you can get a creditworthy cosigner. However, the opposite is also true: a lower credit score may lead to higher interest costs. Also be aware that if the refinanced loan offers a longer period of time for repayment, which will reduce the monthly payment, you will pay more in interest. Ideally, refinance into a loan that offers no prepayment penalty.
When you are using private consolidation to manage the repayment of private debt, the most important advice is to read the fine print for the loan, paying special attention to the terms, conditions, and costs of the new loan. Refinancing private debt has the potential of doing more harm than good if it involves origination fees, increases your interest rate, or results in the loss of positive terms and conditions. So, proceed with caution.
For information on interest and capitalization, visit the Interest and Capitalization page
The length of repayment has an impact on the total cost of the loan. Each repayment plan provides a maximum repayment term, ranging from 10 to 25 years, with a 30-year term possible on consolidation loans. Keep in mind that the ability to pre-pay a loan, repay on a shorter schedule, or change repayment plans remains available in most situations—just contact your loan servicer(s). The longer it takes to pay off the loan, the more interest you may pay and, therefore, the costlier the loan may be. You could choose to make interest-only payments while in school or during residency (if payments have been postponed). To minimize the total cost of your loan, pay the loan off as soon as possible.
Grace and Post Enrollment Deferment
After you leave school, your loans will either enter a grace period or require immediate payment. The grace period is a time when payments aren’t required. The grace period occurs automatically. During the grace period, certain loans will remain subsidized while others will continue to accrue interest. Unsubsidized loans and Graduate PLUS continue to accrue interest during the grace period—just as they always have. The availability and length of a grace period depend on the loan type. Contact your loan servicer(s) for assistance.
Common Grace Periods
Federal Direct Unsubsidized Stafford - 6 months
Federal Direct Graduate PLUS - 6 months
Private Alternative Loans - Varies, check with the lender
Loans where the grace period has been exhausted - Immediately
RFU reports your graduation date as November 1, 2024, for DPT students and May 16, 2025, for all other students, to the National Student Loan Clearinghouse. Your loans will enter repayment after 6 months (180 days) after the previously noted date.
Before Repayment Begins
For many loans, the initial capitalization of accrued interest occurs when you separate from school OR at the end of the grace period. The Loan Repayment Timeline depicts when this generally occurs for each loan.
The actual repayment start date for loans differs depending on the:
Loan Type
Grace period
Loan disbursement date
Loan servicer
It’s important to know what’s in your loan portfolio and when repayment begins so that you can develop a repayment strategy in a timely manner.
Using Up Your Grace Period/Post Enrollment Deferment Period
Many loans enter an automatic grace period after you separate from school; however, you should check with your servicer(s) about your grace period eligibility for each loan because there are numerous ways a grace period can be exhausted (including during any breaks in your education lasting longer than six months). Some loans may offer additional grace periods for certain circumstances, so be sure to check with your servicer(s).
Take comfort in knowing that if your financial situation changes, you have the ability and the right to request any of the following:
Deferment or forbearance to postpone payments
Changes in the repayment plan (which can change the required monthly payment amount)
Shortening of the repayment schedule
Prepayment of loans without penalty
Contact your servicers as your circumstance requires.
Repayment Plans Overview
You have various repayment plans to choose from for repaying your federal student loans. The purpose of the different repayment plans is to provide flexibility in your finances. In most cases, you can change the selected plan when your financial situation changes.
Repayment plans can be broken down into two groups:
The Traditional Plans
Income-Driven Plans
Whether your debt is large or small, the repayment plan you select will affect the total cost of the loans. A hasty decision could turn out to be a costly choice, so when the time comes, consider your financial goals and select your repayment plan wisely.
Your Direct Unsubsidized Loans, Perkins, and other loans with a grace period will enter repayment at the end of the grace period. In the case of Direct PLUS Loans, payment is required after the post-enrollment deferment ends. For loans without a grace period, you will be required to begin repayment when you graduate, withdraw, or drop below half-time status.
Approximately one to two months before your first payment is due, you’ll receive a notice about the exact due date. Around that same time, you’ll also be asked to select a repayment plan—if you have not already done so. The plan that you opt for will determine the amount of your required monthly payment and, consequently, the amount of interest you pay over the life of the loan. Understanding the repayment plans will help you choose the best plan for your financial situation.
NO MATTER WHICH PLAN YOU CHOOSE TO MEET YOUR REPAYMENT GOALS, IT IS IMPORTANT TO PROACTIVELY MANAGE YOUR PAYMENTS.
The best way to do so is to choose the right plan for your financial success. However, if you have difficulty making your student loan payments along the way, remember that you have options. Depending on your situation, you may be eligible for a deferment or forbearance.
The first step is to reach out to your student loan servicer as soon as possible. Your servicer will manage all of the billing associated with your student loan, so you'll make payments to them directly. If you need help making your payments, your servicer can work with you to come up with a solution. Find your servicer(s), including their contact information, by logging into your FSA Dashboard at studentaid.gov.
Federal loan consolidation allows you to combine one or more existing federal student loans into a single loan. A consolidation loan pays off the old loans and gives you a single new loan with new terms, conditions, and possibly a new interest rate. The advantages and disadvantages of consolidating depend on what loans you include in the consolidation and when you consolidate. To consolidate your loans, visit studentaid.gov.
Advantages of Federal Loan Consolidation
A single payment to a single servicer
Possible lower monthly payment
Extended repayment period
No prepayment penalty
Ability to change repayment plans
Possible eligibility for Public Service Loan Forgiveness
Possible eligibility for an income-driven repayment plans
Possible acceleration of repayment start date by forfeiture of grace period
Disadvantages of Federal Loan Consolidation
Longer repayment period resulting in possibly higher interest costs
Possible loss of current borrower benefits
Possible disqualification of past eligible Public Service Loan Forgiveness payments
Higher interest rate (interest rate is the weighted average of the loans rounded up to the nearest one-eighth of a percent)
Possible negative effect on grace, deferment, or forgiveness options
For many medical students leaving school, the primary reason to consolidate is to simplify the repayment process during residency. This is especially true when multiple payments are required due to having loans serviced by multiple servicers. Alternatively, if you would prefer to avoid consolidation, scheduling automatic payments from your bank account can simplify repayment (and eliminate the need to consolidate).
In addition, Federal Direct Loans and FFEL loans are eligible to receive a 0.25% interest rate reduction under the Automatic Debt option, when your loan servicer automatically deducts your monthly payment from your checking or savings account.
Borrowers enrolled in school are not eligible to consolidate.
Student Loan Refinancing (Private Consolidation)
There are companies willing to refinance your federal student loans into one private loan. There is a significant difference between consolidating and refinancing. If your federal loans are put into a private loan, you will lose all rights, terms, and conditions that are currently guaranteed to you - public service loan forgiveness, income-driven repayment plans, discharge in case of death or disability, and forbearance while in residency, to name a few.
Keep the terminology clear so you get the loan you want: If you are offered a consolidation loan for your student loans by a “company,” your loans will be refinanced into a private loan.
For details on the repayment options for a private loan, you must contact the private loan lender.
Private debt and federal debt can operate very differently, especially when it comes to repayment. Know what you’re giving up and what you will gain because refinancing federal loans into one private loan cannot be undone.
If you have excellent credit, you may be able to refinance your existing federal student loans into a private loan. Before doing that, it’s important to understand the full impact of making this permanent change on your loans. Take the 'Should I Refinance My Student Loans' Quiz below to find out.
Should I Refinance My Student Loans Quiz
1. Will this new private loan have a variable interest rate?
If YES, then you should know: If you refinance into a private loan with a low variable rate today, over time, the rate could rise higher than the current fixed rate on your federal loans. Variable rates are tied to an index causing the rate to rise or fall, which makes the total cost of variable rate debt impossible to calculate. Choosing variable-rate loans involves taking some financial risk. Before committing to a variable rate loan, understand exactly how often the rate may change and how high it may rise. A variable rate loan could be a good option IF you will fully repay the loan in the near future.
If NO, then you should know: Fixed-rate loans offer stability to a borrower's repayment, making this a good option for borrowers who don’t like risk. To make an accurate comparison of fixed-rate private loans with other loans, be sure to know the terms, conditions, and fees (e.g., origination fees) of all the loans. A fixed-rate loan may be the best option if high levels of debt and long repayment terms are involved.
2. Will you be working in public service? (this may include work during residency or a fellowship or while you are employed at an academic institution)
If YES, then you should know: After completing 10 years (120 on-time, monthly payments) of public service work, as well as satisfying several other requirements, forgiveness may be granted on some or all of your remaining federal student loans through the Public Service Loan Forgiveness (PSLF) program. Private loans are not eligible for (PSLF). Only Direct Loans qualify for the PSLF program.
If NO, then you should know: Based on your expected career path, forfeiting access to Public Service Loan Forgiveness is not a factor you need to consider when deciding whether to refinance.
3. Will the payments be affordable and/or is postponing payments an option during residency?
If YES, then you should know: The lender determines the terms of private loans. If you cannot make your payments, you will be restricted to the accommodations offered by the private lender. However, with federal loans, a borrower has access to a variety of affordable payment plans and postponement options. For this reason, if you refinance with a private loan, select a reputable lender and thoroughly read the fine print.
If NO or NOT SURE, then you should know: Repaying private student loans can be burdensome if you don’t have access to the kind of flexible repayment and postponement options that federal student loans offer. So, know your current options in the federal program (such as income-driven repayment plans that limit the payment amounts and can lead to forgiveness or the ability to easily postpone payments during residency) and then question the private lender to see exactly how their terms and conditions compare. In general, reputable lenders will warn you about the benefits you are giving up when refinancing federal student loans.
4. Are you comfortable with assuming more risk in your financial life?
Refinancing with a private loan may be a good option if you are highly motivated to repay your student debt; have a secure job, emergency savings, and strong credit; are unlikely to benefit from forgiveness options; and have a low fixed rate option available OR you will have access to sufficient funds in the near future. However, if you do not meet these criteria, many financial advisors suggest that trading in federal loans for private loans will expose you to additional financial risk. Therefore, before you assume possible financial risk, evaluate your current situation to determine whether you could make it through if something unexpected happens.
Federal loans will give you the ability to benefit from their flexible terms and conditions, including access to income-driven repayment plans and possible loan forgiveness, potential interest subsidies, limits to monthly payment amounts, the availability of a death and disability discharge, and possible student loan tax deductions. Be sure the potential reward received in a refinance is enough to offset the potential risk you will assume.
While you are enrolled in school at least half-time, payments are not required on any of your federal student loans. Payments are postponed automatically while you are a student through either an in-school status or an in-school deferment that is applied to your loans. After graduating or separating from medical school, there are several other ways to continue to postpone payments. Keep in mind that if at any time you cannot make a required payment, you should contact your servicers immediately and ask them to help you identify postponement options.
Deferment
Deferment is a period of time when a borrower who meets certain criteria can delay making payments. During a deferment, the government pays the interest that accrues on subsidized loans. For unsubsidized loans, the borrower remains responsible for interest accruing during a deferment.
Deferment does not occur automatically; you must apply AND qualify to receive a deferment. As a medical graduate, it can be difficult to qualify for most types of deferment, but it is possible in some circumstances. The following deferments exist:
In-School
Post-Enrollment
Graduate Fellowship
Unemployment
Rehabilitation Training
Economic Hardship
Military Service
Military Post-Active Duty
As a graduate/resident, the likelihood of qualifying for a deferment is limited, but on that same note, since the majority of current medical graduates have few to no subsidized loans, the value of a deferment (in the form of subsidies) is minimal, or none at all. If you think you may qualify for a deferment, contact your servicer to discuss eligibility and application procedures. If you have more than one servicer, you will need to contact each one.
Forbearance
This status is where most medical graduates will find the solution to their postponement requests. Forbearance is the period of time when a borrower may either:
Make reduced payments
Postpone payments
During forbearance, interest accrues on ALL loans, including subsidized loans—potentially making this a costly way to postpone payments. You can voluntarily pay interest during forbearance, but the interest that is left unpaid will be capitalized. This capitalization often occurs at the end of the forbearance period; however, according to regulation, capitalization is allowed to occur as often as each quarter, so check with your servicers for their capitalization policies.
All forbearance periods must be formally requested from the loan servicer, who, in most cases, will determine the type and length of the forbearance. For medical interns and residents, several forbearance types are available, but the type most often used is mandatory forbearance.
To learn about your forbearance options, contact your loan servicers.
If you decide to work in public service, you may be eligible for federal student loan forgiveness after 10 years of full-time work.
Five Steps to ensure eligibility for Public Service Loan Forgiveness
Step 1: Request a qualifying repayment plan for your eligible loans (re-certify annually).
Step 2: If necessary, consolidate eligible FFEL, HPSL, and Perkins Loans into a Direct Consolidation Loan.
Step 3: Use the PSLF Help Tool to submit your PSLF & TEPSLF Certification & Application to US Department of Education's Office of Federal Student Aid (FSA).
Step 4: Make 120 qualifying payments while working full-time for a qualifying employer.
Step 5: Upon completion of requirements, use the PSLF Help Tool to submit the PSLF & TEPSLF Certification & Application
Checklist for Public Service Loan Forgiveness
Eligible Loans
Only the following loan types are eligible:
Direct Loans (Subsidized and Unsubsidized)
Direct PLUS and parent PLUS Loans
Direct Consolidation Loans
Other federal student loans* can be made by including them in a Direct Consolidation Loan**
*FFEL Stafford, Grad PLUS, Federal Consolidation, Perkins, HPSL, and certain other FFEL Loans
NOTE: Defaulted loans, private loans, and any consolidation loan containing a spousal consolidation loan are not eligible
Qualifying Payments
While simultaneously working full-time (an average of 30 hours per week) in a qualifying public service position, you must make 120 full monthly payments* under a qualifying repayment plan ,
The following plans qualify:
Saving on a Valuable Education (SAVE) (formerly REPAYE)
Pay As You Earn (PAYE)
Income Based Repayment (IBR)
Income-Contingent Repayment (ICR)
10 Year Standard Repayment plan
*Payments do not have to be consecutive, allowing for changes in employers and periods of non-work such as vacation or leave time provided by the employer or leave taken for a condition that is a qualifying reason for leave under the Family and Medical Leave Act of 1993, 29, U.S.C. 2612(a)(1) and (3) is equivalent to hours worked in qualifying employment.
Qualifying Work
Qualifying employment for the PSLF Program isn’t about the specific job that you do for your employer. Instead, it’s about who your employer is. You must be employed full-time* for a total of 10 years in a public service position. For the work to be considered public service your employer must be one of the following:
Non-profit tax-exempt 501(c)(3) organization (includes many medical schools and residency programs)
Federal, state, local, or tribal government organization, agency, or entity - this includes the military
*Full-time work is considered to be 30 hours per week. To qualify for PSLF, you must be employed full-time by a qualifying employer when you apply for and receive PSLF.
Submit questions about eligible employers to the US Department of Education's Office of Federal Student Aid (FSA). They are the servicer that oversees PSLF.
Under all four plans, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period. For any income-driven repayment plan, periods of economic hardship deferment, periods of repayment under certain other repayment plans, and periods when your required payment is zero will count toward your total repayment period. Whether you will have a balance left to be forgiven at the end of your repayment period depends on a number of factors, such as how quickly your income rises and how large your income is relative to your debt. Because of these factors, you may fully repay your loan before the end of your repayment period. Your loan servicer will track your qualifying monthly payments and years of repayment and will notify you when you are getting close to the point when you would qualify for forgiveness of any remaining loan balance.
SAVE - 25 years if any loans you’re repaying under the plan were received for graduate or professional study; 20 years if all loans you're repaying under the plan were received for undergraduate study
PAYE - 20 years
IBR - 20 years if you’re a new borrower on or after July 1, 2014; 25 years if you’re not a new borrower on or after July 1, 2014
ICR - 25 years
View the Federal Student Aid PDF for Forgiveness Options for Military Service here.
Read the article from The College Investor here.
If you experience a loan dispute that cannot be resolved after repeated attempts, including first submitting the complaint through the FSA Feedback System, you can submit the complaint to the FSA ombudsman. The FSA ombudsman conducts impartial fact-finding research about your complaint to reach a resolution. The ombudsman can recommend solutions but does not have the authority to reverse decisions or dictate specific actions. The ombudsman can be reached at 1-877-557-2575.
If you experience problems or disputes with your federal student loans, several resources are available to assist you, including:
Federal Student Aid (FSA) Help Center
1-844-651-0077 • studentaid.gov/help-center
U.S. Department of Education’s Federal Student Aid (FSA) Ombudsman
1-877-557-2575
Student Loan Borrower Assistance Project
studentloanborrowerassistance.org
Consumer Financial Protection Bureau
1-855-411-2372 • consumerfinance.gov
Tuition-paying students at eligible colleges or post-secondary schools receive a copy of the IRS form 1098-T each year. This form provides information about educational expenses that may qualify the student or guardian (if the student is still dependent) for education-related tax credits.
RFU sends the 1098-T form to any student that paid qualified expenses that include tuition, any fees that are required for enrollment, and course materials that were required by the school. Schools must send the form to the student by January 31 and file a copy with the IRS by March 31st.
*1098-T is electronically done and no paper copy is sent unless requested. For requests and questions, please contact student.billing@rosalindfranklin.edu.
You should be contacted by RX Financial to continue your Disability insurance.
Plan to "cluster interview", meaning fly to a region and then drive to each site (but start/end at the same airport
Drive to programs whenever possible
Stay with friends or family anywhere you can
While traveling, keep your meal selections frugal
If you need to purchase new interview attire, keep the expenditures modest
Research the city/location you’ll be visiting to help budget transportation costs from the airport or hotel to the hospital site
Check to see if shuttle services are available that can help mitigate the cost of an expensive cab ride
If possible, consider coordinating accommodations with other medical students or stay in residents’ quarters
Private Residency and Relocation Loans
Students in their final year of their health professions training have a variety of expenses that may not be included in the standard student budget. Some of these expenses may include participating in the board examination expenses, residency match, traveling for interviews, related meals and lodging, moving expenses, etc.
Unlike federal student loans, residency and relocation loans are referred to as private (or alternative) loans. Please keep in mind that private alternative loans cannot be consolidated into a federal student loan and therefore are not eligible for federal repayment/forgiveness options. Taking out this loan is strictly between you (the borrower) and the lender. The Financial Aid Office is not involved in the application and disbursement process for residency and relocation loans; however verification that you are enrolled in your final year of school can be certified through the Registrar’s Office.
The loan fees and interest rate for residency and relocation loans will be based on your credit-worthiness, or the credit-worthiness of you and your co-signer.
Be highly selective in determining which lender to utilize, by comparing all the terms and conditions of the loan prior to making your decision.
Evaluate the Following:
Interest rates
Maximum loan amount
Processing time
Disbursement dates
Postponement of payment options
Repayment term
Frequency of capitalization
Important Questions to Ask
Interest Rates, Fees, and Terms:
How is the interest rate calculated?
Is it a fixed or variable rate?
What are the terms of the loan?
Are there any application fees, origination fees, or prepayment penalties?
Loan Application Process:
Is it an online application?
Is instant loan approval offered?
Will I need a co-signer?
Is there a co-signor release option available?
Is there an aggregate loan limit for other educational debt?
Repaying Your Loan:
How soon do you start repaying?
Are "deferment and forbearance" options offered after graduation and during residency?
Are incentives offered for on-time or electronic payments?
Residency & Relocation Loan Lender Options
View the list of lenders here.
View the AAMC's 'Living on a Resident Stipend' graphic here.
Complete the MANDATORY Online Exit Counseling on studentaid.gov, if you received a federal student loan, you are required to complete exit counseling before you graduate.
Exit counseling is a mandatory information session that explains your loan repayment responsibilities and when repayment begins.
To complete the Exit Counseling sign in (You will need to enter your FSA ID and password): https://studentaid.gov/app/counselingInstructions.action?counselingType=exit
Click on 'Exit Counseling' and then click 'Start'
If you exit the counseling session and return later, you will need to start over. The entire session takes approximately 20-30 minutes to complete.
At the end of the Federal Online Exit Counseling session, it asks you to choose a repayment plan. This is not a binding agreement when choosing your repayment plan.
Have the following information available:
Names, addresses, phone number(s), and email addresses of two separate references (they are not impacted by your loan repayment decisions). You may use your parent(s) and two other personal contacts.
Your driver’s license number.
You must attend a MANDATORY Exit Counseling Presentation. Find your program's RFU Exit Counseling Presentation information below. If you have any questions, comments, or concerns please contact your financial aid counselor via the financial.aid@rosalindfranklin.edu email address (NOTE: you must complete the Federal Online Exit Counseling on studentaid.gov prior to attending an RFU Exit Counseling Presentation)