What should I consider when taking out federal student loans?

Before you take out a loan, it’s important to understand that a loan is a legal obligation that makes you responsible for repaying the amount you borrow with interest. Even though you don’t have to begin repaying your federal student loans right away, you shouldn’t wait to understand your responsibilities as a borrower.

Be a responsible borrower.

• Keep track of how much you’re borrowing. Think about how the amount of your loans will affect your future finances, and how much you can afford to repay. Your student loan payments should be only a small percentage of your salary after you graduate, so it’s important not to borrow more than you need for your school-related expenses.
• Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can also use the U.S. Department of Labor’s Occupational Outlook Handbook or career search tool to research careers and salaries.
• Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note, you are agreeing to repay the loan according to the terms of the note even if you don’t complete your education, can’t get a job after you complete the program, or you didn’t like the education you received.
• Make payments on time. You are required to make payments on time even if you don’t receive a bill, repayment notice, or a reminder. You must pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time.
• Keep in touch with your loan servicer. Notify your loan servicer when you graduate; withdraw from school; drop below half-time status; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you’re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing.

How do I get a federal student loan?

To apply for a federal student loan, you must first complete and submit a Free Application for Federal Student Aid (FAFSA®) form. Based on the results of your FAFSA form, your college or career school will send you a financial aid offer, which may include federal student loans. Your school will tell you how to accept all or a part of the loan.

Before you receive your loan funds, you will be required to

• complete entrance counseling, a tool to ensure you understand your obligation to repay the loan; and
• sign a Master Promissory Note, agreeing to the terms of the loan.
• Contact the financial aid office at the school you are planning to attend for details regarding the process at your school.

Is the U.S. Department of Education responsible for Health Education Assistance Loan (HEAL) Program loans?

Yes. On July 1, 2014, the HEAL Program was transferred from the U.S. Department of Health and Human Services (HHS) to the U.S. Department of Education (ED). However, it is no longer possible to obtain a new HEAL Program loan. The making of new HEAL Program loans was discontinued on Sept. 30, 1998.

If you have HEAL Program loans and are not in default on those loans, contact your loan servicer for help with account-related questions. Use the contact information your loan servicer provided to you.

If you have HEAL Program loans and are in default on those loans, contact the Debt Collection Center for help with account-related questions.

• For mail sent via U.S. Postal Service:
  HHS Program Support Center
  Accounting Services, Debt Collection Center
  Mailstop 10230B
  7700 Wisconsin Avenue, Suite 8-8110D
  Bethesda, MD 20857
• For mail sent via UPS or FedEx:
  HHS Program Support Center
  Accounting Services, Debt Collection Center
  Mailstop Seventh Floor
  7700 Wisconsin Avenue, Suite 8-8110D
  Bethesda, MD 20814
  Phone: 301-492-4664
• If you have a general HEAL Program question (not a loan account question), contact ED’s HEAL Program Team at 1-844-509-8957 or HEAL@ed.gov.