Loan Repayment

Repayment Information


William D. Ford Federal Direct Student Loans

Repayment of subsidized and unsubsidized loans begins six months after the student graduates, leaves school or drops below half-time enrollment. To access information on your previously disbursed Direct Loans, as well as an overall balance, go to the Department of Education's National Student Loan Data System website. Based on the Winter 2013 Semester results the average graduating student borrowed $25,905 in Direct Loans.

Sample Repayment A student that borrowed $25,905 in Direct Loans at 6.8% while at Northern Michigan University who enrolls in the Direct Loan standard repayment plan would expect to pay $298 a month for 10 years (120 payments). That student would have paid back the $25,905 plus $9,869 in interest during repayment. To calculate your estimated monthly payments on your Federal loans, use the calculator on the Department of Education's website here.

Exit Counseling Students who borrowed Direct Loans while at Northern Michigan University must complete exit counseling at This counseling will not only stress the necessity of paying back your Direct Loans, but also give you options for repayment, options if payments cannot be made on time, etc. Please remember, the longer it takes for you to pay back your Direct Loans, the more you will end up paying back in the end.

Late Payments/Defaulting

Making late or no payments on your Direct Loan will negatively impact your credit. Your loan will go into a defaulted status once you are 360 days behind on your loan payments. This action will have serious consequences for you on many levels. There are always options before defaulting.

  • NMU's 2012 - 3 year cohort default rate = 9.6%
  • NMU's 2011 - 3 year cohort default rate = 12.1%
  • NMU's 2010 - 3 year cohort default rate = 10.3%

The cohort default rates is the percentage of students that default on their Federal loans within two years of the fiscal year they enter repayment. For tips on how to prevent defaulting on your student loans, please click here.