Understanding the repayment process for student loans can go a long way toward building a solid financial foundation.
Remember, federal student loans are real loans, just like car loans or mortgages. Student borrowers must repay a student loan even if financial circumstances become difficult. Student loans cannot be canceled because a person didn’t get the education or job expected, or because a degree wasn’t earned (unless it wasn’t possible to complete a degree because the school closed).
At LHU we process two major types of loans: Federal Direct Student Loans and Federal Perkins Loans. Please refer to the appropriate webpage for more detailed information regarding the loan repayment process for each type of loan a student received.