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US Education Department

US Education Department
Overall Satisfaction Rating 3.51/5
  • 5 stars
    41
  • 4 stars
    40
  • 3 stars
    30
  • 2 stars
    21
  • 1 stars
    13
Based on 145 ratings submitted in the last year

This profile has not been claimed by the company. See reviews below to learn more or submit your own review.

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.

BOTTOM LINE

The U.S. Department of Education provides financial aid in the form of grants and student loans. It regulates and provides data regarding college attendance. It also offers debt forgiveness and consolidation.

PROS
  • Offers grants
  • Loan forgiveness programs
  • Flexible payback options
CONS
  • Can garnish wages
  • Can garnish tax refunds

Top US Education Department Reviews We Found

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Rated with 5 stars
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Verified Reviewer

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.

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Rated with 5 stars
Verified Reviewer

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, they will help you through it all.

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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

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    How do I know I can trust these reviews about US Education Department?
    How do I know I can trust these reviews about US Education Department?
    • 3,145,531 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.

    For more information about reviews on ConsumerAffairs.com please visit our FAQ.

    Page 1 Reviews 0 - 10
    Rated with 5 stars
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    Verified Reviewer
    Original review: 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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    Rated with 5 stars
    Verified Reviewer
    Original review: 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.

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      Rated with 5 stars
      Verified Reviewer
      Original review: 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.

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      Rated with 5 stars
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      Verified Reviewer
      Original review: 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.

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      Rated with 5 stars
      Verified Reviewer
      Original review: 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.

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      Rated with 5 stars
      Verified Reviewer
      Original review: 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.

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      Rated with 5 stars
      Verified Reviewer
      Original review: 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.

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      Rated with 2 stars
      Verified Reviewer
      Original review: 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.

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      Rated with 1 star
      Verified Reviewer
      Original review: 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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      Rated with 1 star
      Verified Reviewer
      Original review: May 24, 2020

      I began college when I was 17 since my birthday is September 1st which made me a financial target by the Department of Education. I was never informed of the burden of debt accumulation. I’m a registered nurse but I owe more to the US Department of Education than my annual salary. Let’s talk about this monthly calculation as if I don’t have bills to pay and children to take of. There is a different amount of interest on each loan within the same loan that you take out. For example, 1 loan may have 3 or 4 different lenders with all different interest amounts. Does a 17 year old fully understand this large amount of information. President Trump, something needs to change.

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      US Education Department Company Information

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