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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
- Offers grants
- Loan forgiveness programs
- Flexible payback options
- Can garnish wages
- Can garnish tax refunds
Featured Reviews
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...
Read full reviewFedLoan 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...
Read full reviewAbout 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 type | Student | Interest rates |
---|---|---|
Perkins Loans | Any | 5.00% |
Direct Subsidized Loans | Undergraduate | 2.75% |
Direct Unsubsidized Loans | Undergraduate | 2.75% |
Direct Unsubsidized Loans | Graduate or professional | 4.30% |
Direct PLUS Loans | Graduate or professional; parents | 5.30% |
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.
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US Education Department Company Information
- Company Name:
- US Education Department
- Website:
- www.ed.gov