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You can have your federal student loans canceled for school-related reasons, such as your school closing, or in the event of disability or death. Department of Education will accept payment in the form of checks, money orders or credit or debit cards.

Learn more » You could choose to pay the full amount of what you owe on your loan to get out of default. Learn more » On this page, we write exclusively about getting out of default on your Federal Direct and FFEL student loans.

Direct PLUS loans have a lower interest rate (7%) compared to FFEL PLUS loans (8.5%).Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one! Consolidating allows you to merge multiple eligible loans into a single loan.All other loans have the same interest rate regardless of the program. Private student loans (also known as alternative student loans) remain unchanged.Paying for college places extraordinary financial burdens on families; especially in light of continually rising higher education costs.

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