Understanding Your Repayment Options with EdFed Loans 

EdFed Loans are a type of student loan that can be used for both undergraduate and graduate studies. These loans are available through the Federal Direct Loan Program and the Federal Family Education Loan Program. If you’re considering taking out an EdFed Loan, there are a few things you should know. In this blog post, we’ll cover everything you need to know about EdFed Loans, from how to apply to repayment options.

How to Apply for an EdFed Loan

The first step in applying for an EdFed Loan is to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to determine your eligibility for federal student aid, which includes loans, grants, and work-study programs. You can fill out the FAFSA online at 

Once you’ve submitted your FAFSA, you’ll receive a Student Aid Report (SAR). The SAR will list your Expected Family Contribution (EFC), which is the amount of money your family is expected to contribute towards your education. Your EFC will be used to determine your eligibility for federal student aid. 

If you’re eligible for an EdFed Loan, you’ll be notified in your SAR. You can then log in to your account at to complete the loan application process. 

Loan Interest Rates 

The interest rate on an EdFed Loan is fixed for the life of the loan and is determined by the date of first disbursement. The interest rate for loans first disbursed between July 1, 2020 and June 30, 2021 is 2.75% for Direct Subsidized Loans and Direct Unsubsidized Loans borrowed by undergraduate students and 4.30% for Direct Unsubsidized Loans borrowed by graduate or professional students. 

loan Fees 

There’s a loan fee charged on all Direct Subsidized Loans and Direct Unsubsidized Loans that’s a percentage of the total loan amount and is deducted proportionately from each loan disbursement made before the start of repayment. For example, if you take out a $10,000 loan with a 1% fee ($100), then when that loan is first disbursed to you, you’ll receive $9,900 ($10,000 – $100). The fee on loans first disbursed between October 1st 2020 and September 30th 2021 is 1% of the total loan amount borrowed.. 

Repayment Options Standard Repayment Plan –

Under this plan, your monthly payments will be fixed over a 10-year period.. Graduated Repayment Plan – Under this plan, your monthly payments will start off low and increase every two years over a 10-year period.. Extended Repayment Plan – Under this plan ,you may have up to 25 years to repay your loan depending on how much you owe.. Income-Driven Repayment Plans – There are four income-driven repayment plans: Income Based Repayment (IBR) Plan ,Pay As You Earn (PAYE) Plan ,Revised Pay As You Earn (REPAYE) Plan ,and Income Contingent Repayment (ICR) Plan .Under these plans ,your monthly payment amount will be based on your income level.. Public Service Loan Forgiveness Program – If you work full-time for certain public service organizations or non-profit organizations ,you may qualify for forgiveness of any remaining balance due on your student loans after making 120 qualifying monthly payments 

Conclusion: Now that you know everything there is to know about Edfed Loans ,it’s time to start thinking about whether or not one is right for you .If you think an Edfed Loan could help finance your education ,be sure to fill out a FAFSA form so that you can begin the application process .. And as always ,if you have any questions about Edfed Loans or any other type of financial aid ,don’t hesitate to reach out to our team of experts at College Raptor !We’re here to help !