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About Student Loans

Different types of student loans offer varying interest rates and repayment benefits. In addition to commercial and private student loans which are funded by banks, credit unions and other types of lenders, the most common student loans are those owned by the federal government.

Types of Federal Student Loans

When you are enrolled at least half-time, you may qualify for either subsidized loans or unsubsidized loans from the Department of Education, or you may receive a financial aid package with both. The main difference is that the government pays the interest on subsidized loans while you’re in school at least half-time or while you defer your loans. You are responsible for any interest that accrues on an unsubsidized loan.

Find Out What Type of Federal Loan You Have

Go to Loan Detail, or visit Federal Student Aid to view loan type(s).


The Step-by-Step Guide to Student Loans

The life cycle of a student loan begins when you sign the Master Promissory Note (MPN) and lasts until you make the final payment. Taking out student loans is a major step in your life, and a big financial commitment. Depending on the type of loan(s) you have, you should be aware of what actions you need to take to successfully repay your loan.

Federal Direct Loans have three steps that a borrower usually moves through. Based on where you are in the student loan life cycle (in school, in grace or in repayment), we will communicate with you about what actions you may need to take or information you should be aware of. See a summary of the steps below in the Federal Direct Loan life cycle.

Private loans and other types of federal student loans may offer varying terms related to the grace period, interest rates and student loan benefits. Check with your loan servicers to learn more about your specific terms and conditions.


Steps in the Federal Direct Loan Life Cycle


Direct Subsidized and Direct Unsubsidized Loans

Depends on your degree or certificate program.

  • Complete entrance and exit counseling through your school.

  • Keep your contact information up to date so we can reach you with important account information.

  • Set up your online account.

  • You are not required to make payments at this time. If you can afford to make even some payments while you are in school, it will help save you money down the road and reduce the total amount that you repay. Consider making payments toward unsubsidized loans that accrue interest while you are in school.

When you are enrolled less than half time at your school, you will enter your six-month grace period (for Subsidized and Unsubsidized Direct Loans) when you should prepare to start making payments.

Don’t Borrow More Than You Need

  • Calculate your college and living expenses and create a budget to help you determine how much financial assistance you need.

    • Don’t forget to include tuition, books, food, rent, utilities, entertainment, transportation, insurance, other loan payments, etc.

  • Work with your school’s Financial Aid Office – they are responsible for determining your financial aid package including scholarships, grants, loans and work-study.

    • If your expenses are lower than the package offered, you can choose to take a smaller loan, which will save you down the road.

    • Understand your school’s eligibility requirements to maintain your financial aid.

  • Explore scholarships outside of those offered by your school.

  • If you take out $25,000 in student loans, it will cost you approximately $34,524.14 over 10 years on a Standard Repayment Plan at 6.8%.

6 months

  • Make sure your and your references’ addresses, phone numbers, names and email addresses are up to date so we can reach you with important account information. This can be updated directly through MOHELA or during the exit counseling process.

  • You are not required to make payments at this time. If you can afford to make even some payments while you are in your grace period, it will save you money down the road and reduce the total amount that you repay. See the Payment Methods page for more information.

Locate Your Loans and Decide If You Can Afford Your Monthly Payment

  • Locate each of your federal loans by logging into the Department of Education’s Office of Federal Student Aid.

  • Create a budget to help you determine how much will be able to go toward student loans.

  • Determine which repayment plan you qualify for that will work best for you. If you are unable to make your upcoming scheduled payments, contact us right away to explore your options.

1-30 years depending on your loan balance and repayment plan

  • Make your monthly payments on time to help your understanding credit and keep you out of delinquency or default.

  • If you would like to make additional payments, that will save you money down the road.

  • Create an online account if you haven’t already.

  • Manage your account.

    • View your due dates, payments due and loan details

    • Determine which repayment options you qualify for that will work best for you.

  • Keep your contact information updated so we can reach you with important account information.

  • Call us if you have any questions or if you’re unable to make your payment – we’re here to help you successfully repay your loans.

Review Important Account Information

  • MOHELA sends monthly bills (view sample of monthly bill) and relevant communications in reference to your account. Read them closely and contact us with any questions.

    • Monthly Bills - View a sample bill.

    • Repayment plan options and annual renewal notifications

    • Notification of repayment disclosure and repayment plan changes

    • Notification of deferment and forbearance changes

    • Interest notices

    • Auto Debit program and interest rate benefit

    • Delinquency outreach

    • Outreach to Military Servicemembers

    • Paid in full notification



Direct Graduate PLUS Loan

Depends on your degree or certificate program.

Interest begins to accrue daily with your first disbursement. You will enter repayment within 60 days of the school receiving all of the loan funds. You will automatically have an In-School Deferment applied that lasts for six months after you are no longer enrolled at least half time. While on the deferment, you will not be required to make payments, however interest will continue to accrue daily.

  • Complete entrance and exit counseling through your school (if applicable).

  • Keep your contact information up to date so we can reach you with important account information.

  • Set up your online account.

  • You are not required to make payments at this time. If you can afford to make even some payments while you are in school, it will help save you money down the road and reduce the total amount that you repay.

Don’t Borrow More Than You Need

  • Calculate your college and living expenses and create a budget to help you determine how much financial assistance you need.

    • Don’t forget to include tuition, books, food, rent, utilities, entertainment, transportation, insurance, other loan payments, etc.

  • Work with your school’s Financial Aid Office – they are responsible for determining your financial aid package including scholarships, grants, loans and work-study.

    • If your expenses are lower than the package offered, you can choose to take a smaller loan, which will save you down the road.

    • Understand your school’s eligibility requirements to maintain your financial aid.

  • Explore scholarships outside of those offered by your school.

  • If you take out $25,000 in student loans, it will cost you approximately $34,524.14 over 10 years on a Standard Repayment Plan at 6.8%.

Interest begins to accrue daily with your first disbursement. You will enter repayment within 60 days of the school receiving all of the loan funds. You will automatically have an In-School Deferment applied that lasts for six months after you are no longer enrolled at least half time. While on the deferment, you will not be required to make payments, however interest will continue to accrue daily.

After In-School Deferment ends, repayment will last 1-30 years depending on your loan type and repayment plan.

Review Important Account Information

  • MOHELA sends monthly bills (view sample of monthly bill) and relevant communications in reference to your account. Read them closely and contact us with any questions.

    • Monthly Bills - view a sample of monthly bill

    • Repayment plan options and annual renewal notifications

    • Notification of repayment disclosure and repayment plan changes

    • Notification of deferment and forbearance changes

    • Interest notices

    • Auto Debit program and interest rate benefit

    • Delinquency outreach

    • Outreach to Military Servicemembers

    • Paid in full notification

Locate Your Loans and Decide If You Can Afford Your Monthly Payment


Direct Parent PLUS Loan

Depends on your student’s degree or certificate program.

Interest begins to accrue daily with your first disbursement. Regardless of your student’s enrollment, you will enter repayment within 60 days of the school receiving all of the loan funds. You may apply for an In-School Deferment while you or the student are enrolled at least half time. You may also request a Post-Enrollment Deferment during the six-month period after the student is no longer enrolled at least half time. While on a deferment, you are not required to make payments, however interest will continue to accrue daily.

  • Keep your contact information up to date so we can reach you with important account information.

  • Set up your online account.

  • If you request and are approved for a Parent PLUS Borrower Deferment - You are not required to make payments at this time. If you can afford to make even some payments while your student is in school, it will help save you money down the road and reduce the total amount that you repay.

Don’t Borrow More Than You Need

  • Work with your school’s Financial Aid Office – they are responsible for determining your student’s financial aid package including scholarships, grants, loans and work-study.

    • If your student’s expenses are lower than the package offered, you can choose to take a smaller loan, which will save you down the road.

    • Understand your school’s eligibility requirements to maintain your financial aid.

  • Help your student explore scholarships outside of those offered by your school.

If you take out $25,000 in student loans, it will cost you approximately $34,524.14 over 10 years on a Standard Repayment Plan at 6.8%.

1-30 years depending on your repayment plan

Interest begins to accrue daily with your first disbursement. Regardless of your student’s enrollment, you will enter repayment within 60 days of the school receiving all of the loan funds. You may apply for an In-School Deferment while you or the student are enrolled at least half time. You may also request a Post-Enrollment Deferment during the six-month period after the student is no longer enrolled at least half time. While on a deferment, you are not required to make payments, however interest will continue to accrue daily.

Review Important Account Information

  • MOHELA sends monthly bills (view sample of monthly bill) and relevant communications in reference to your account. Read them closely and contact us with any questions.

    • Monthly Bills - view a sample of monthly bill

    • Repayment plan options and annual renewal notifications

    • Notification of repayment disclosure and repayment plan changes

    • Notification of deferment and forbearance changes

    • Interest notices

    • Auto Debit program and interest rate benefit

    • Delinquency outreach

    • Outreach to Military Servicemembers

    • Paid in full notification

Locate Your Loans and Decide If You Can Afford Your Monthly Payment