US Education Department

US Education Department Reviews

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About US Education Department

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The U.S. Department of Education provides financial aid for college and university students in the form of grants and student loans. In addition, it regulates education policy and provides data on university attendance and affordability. The Department offers student loans with interest rates between 2.75% and 5.30% at the time of publishing, and it supports affordable payments with its flexible payback options and loan forgiveness programs.

Pros & Cons

Pros
  • Offers grants
  • Loan forgiveness programs
  • Flexible payback options
Cons
  • Can garnish wages
  • Can garnish tax refunds

Featured Reviews

Verified
Salisbury, MD

I used the US Ed loan once and had a great experience with this. I found it very easy to apply for education loans and grants. Once I completed the applications I received my loan...

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Verified
Ogden, UT

FedLoan Servicing makes it easy to get approved, they also work with you to keep your payback payments low. If you need to consolidate or apply for an income driven repayment plan...

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About the U.S. Education Department

The U.S. Department of Education provides students with financial aid so they can attend college. It offers support in the form of student loans, discretionary grants awarded through a competitive process and formula grants, which Congress determines based on factors like population and census data. The Department also offers Pell grants and parent PLUS loans.

As well as offering services such as loan consolidation, student loan forgiveness and student loan deferment, the U.S. Department of Education provides information about regulation and policy documents pertaining to education in the U.S. Moreover, it provides data and statistics about K-12 schools, colleges and student outcomes.

What does the U.S. Education Department do?

The U.S. Department of Education guides students looking for various grants and student aid by providing information about eligibility requirements and aid estimates. Students who qualify can submit an application by visiting the website and clicking on the relevant program.

Students submit their applications after logging into their accounts, and the Department assesses each application and informs the parties who qualify. Applicants who already have a loan but are interested in lowering their payments or consolidating debts follow a similar process.

U.S. Education Department costs

Interest rates for the U.S. Department of Education’s student loans vary depending on the type of loan you get. As of February 2021, the interest rates include:

Loan typeStudentInterest rates
Perkins LoansAny5.00%
Direct Subsidized LoansUndergraduate2.75%
Direct Unsubsidized LoansUndergraduate2.75%
Direct Unsubsidized LoansGraduate or professional4.30%
Direct PLUS LoansGraduate or professional; parents5.30%

The Department may assign you a repayment plan — or you can select one.

Either way, students can change payment plans at any time with no fees. A standard payment plan requires a student to pay off a loan within 10 years. If it’s a consolidated loan, repayment is necessary within 10 to 30 years.

Direct loan borrowers must have more than $30,000 in outstanding loans, and payments can be fixed or graduated to ensure loan repayment within 25 years. Students enrolled in a Revised Pay As You Earn Repayment Plan (REPAYE) need to make monthly payments of 10 percent of their discretionary income.

U.S. Education Department FAQ

Is the Department of Education refunding offsets?

Yes. The Secretary of Education directed the Department to refund about $1.8 billion in offsets. Around 830,000 borrowers benefitted from the order.

Is the Department of Education giving back tax returns?

If you have an outstanding federal student loan, the Department can send a request to the Treasury to seize your tax refund to offset it against the debt.

Can the U.S. Department of Education garnish wages?

Federal law permits the lender to garnish up to 15% of the borrower’s disposable pay. The borrower will receive a 30-day notice, explaining the Department’s intention.

Can the Department of Education garnish my tax refund?

Yes, the Department can send a request to the Treasury to seize your tax refund to pay off the federal student loan.

Is the U.S. Education Department a good student loan financer?

The U.S. Department of Education provides several grants that help students attend college. Most of the grants are awarded based on the individual’s eligibility and qualifications. The Department offers military family, international study and work-study financial aid.

Borrowers who are unable to pay back their federal loans may find that the Department of Education will garnish their wages up to 15%, as well as their tax refund. However, the Department allows borrowers to change payment plans at any time at no cost, and it also offers loan forgiveness and debt consolidation.

US Education Department Reviews

Stars Rating

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Popular Mentions

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    How do I know I can trust these reviews about US Education Department?
    • 4,461,922 reviews on ConsumerAffairs are verified.
    • We require contact information to ensure our reviewers are real.
    • We use intelligent software that helps us maintain the integrity of reviews.
    • Our moderators read all reviews to verify quality and helpfulness.
    Page 1 Reviews 0 - 10
    Staff

    Reviewed Sept. 20, 2023

    Instead of resolving reported blunders caused by this department's operations, ED finds enough staff-hours to canvass the internet in search for unfavorable to them posts and makes an effort to detour a poster into ED's own webpages - stemming further discussion of ED's shortcomings (and more examples from could-be new posters) and keeping it from public view.

    Loan Process

    Reviewed Jan. 8, 2021

    I used the US Ed loan once and had a great experience with this. I found it very easy to apply for education loans and grants. Once I completed the applications I received my loans very quickly. The repayment plan was easy to work with and if I had any questions they were always available to provide me with assistance.

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      Loan ProcessRates

      Reviewed Jan. 2, 2021

      Interest is very low. This has definitely been very helpful in paying the school loan off. We acquire so much debt in pursuing our education that This is a must especially with school loans! During COVID they have also gave options in payments to help people get through these hard times.

      Rates

      Reviewed Jan. 1, 2021

      Great interest rate and no extra fees as middle dealers. Avoid any private banks due their markup APR and fees and penalties. Use auto deduct via my checking account. Their paperwork is clear and simple so was their mailing and email notices.

      Staff

      Reviewed Dec. 30, 2020

      FedLoan Servicing has treated me with respect. They were very helpful in helping me get forbearance when I was experiencing financial struggles. They continue to provide excellent service and stay in touch with me to keep me posted about upcoming items of interest.

      Loan Process

      Reviewed Dec. 29, 2020

      Fed loan servicing makes it easy to get approved, they also work with you to keep your payback payments low. If you need to consolidate or apply for an income driven repayment plan, they will help you through it all.

      Customer ServiceStaff

      Reviewed Dec. 28, 2020

      I have tried to discuss with them about my bill and the college was investigated for misdoings and I can't find anyone who will do anything. You never get the same person when you call and emails are always someone else. There isn't any one person they can give to me to resolve the situation. I also worked as a medical technologist and for nonprofits which should dismiss some of that loan. Again I can't find a person to help me. Horrible.

      Customer Service

      Reviewed Dec. 27, 2020

      I am doing an income based repayment along with the public service loan forgiveness which works for me. They are quick to answer any questions and I’ve never had an issue with them. With the Covid crisis going on the government has stopped requiring payments which is helpful as well. I have no complaints with the service I’ve received thus far.

      Loan Process

      Reviewed Dec. 26, 2020

      It has been a smooth and pleasant experience because of the many options available to resolve my student loan debt. I am glad I chose the US Education loan program. I never feel stressed or pressured and I'm able to remain in good standing making affordable payments based on my income.

      Loan Process

      Reviewed Dec. 25, 2020

      I felt like the US Department of Education did not care about the details that I repeatedly mentioned in my letters to them and on the application to receive loan forgiveness. I obtained the loan through Metropolitan Technical Institute. The school made false promises and reneged on our agreement. The education was poor, they did not offer job placement and they pushed me out of the program by presenting false documents to show that I passed every class. The school closed soon after. The Department of Education took my tax refunds repeatedly while I was a single parent, trying to support my children. They more than tripled the amount that I actually borrowed and ignored all that I had to say.

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      US Education Department Company Information

      Company Name:
      US Education Department
      Website:
      www.ed.gov