Manage and repay your loan

Borrowers are obligated to make minimum loan repayments. There are deferment and forbearance options and consequences for overdue payments.

We recommend you manage your federal loan online through the US Federal Student Aid website, where you can make payments, change repayment plans, explore options, and get help.

Find more information about repaying and managing your loans:

When you finish studying

The US Department of Education requires Federal Student Aid recipients to complete exit counselling and begin paying back their loans once they finish studying.

Exit counselling

You must complete exit counselling before leaving Victoria University of Wellington. Exit counselling covers repayment and deferment options under the terms of your loan, along with your obligations and rights as a borrower and other important information you may need during your repayment term.

Repay your loan

Your obligation to repay becomes legally binding when you sign the Master Promissory Note and authorise the transfer of funds to your student account.

Your requirement to repay does not go away because you:

  • do not complete your educational programme
  • cannot find employment
  • were not satisfied with the education or other services at the University
  • were notified that your loan was sold to another party by your lender.

Pay on time

You must make your repayments on time unless you have made special arrangements with your loan servicer.

Make a minimum payment

A minimum monthly loan payment is required. This minimum amount varies depending on the amount you borrow and your chosen repayment plan.

Repayment plans and estimator

The US Federal Student Aid Loan Simulator is a useful tool to better understand your total loan debt, repayment options, and overall loan costs.

Student debt on graduation

Your debt level will reflect your individual choices and knowledge about loan programme options.

We are committed to ensuring that you leave this institution with the lowest amount of debt possible, and we will actively work with you to ensure this. We will be actively tracking your debt and benchmarking it with others who have studied in the same method and course as you.

Additional debt management information is available to all of the University’s student borrowers.

Suspending repayments

You have the option of suspending loan repayments for a period under certain conditions, through deferment or forbearance. However, it is important to note how interest must be paid or not paid on various loans.


Deferment allows you to temporarily stop making payments. You must continue making repayments until you have been notified that the deferment is granted. Keep copies of all forms and correspondence related to your deferment.


If you are in temporary financial difficulty with no deferment option available, you may request forbearance from your lender or servicer. Forbearance is granted at the loan servicer’s discretion and allows you to have months added to the term of your loan, temporarily reduce the amount of your monthly payment, or suspend monthly payments.

Interest continues to accrue on your loan during forbearance. Interest must be repaid, which can result in higher monthly payments once the forbearance has ended.

Information about deferment and forbearance options and how to apply is on the Federal Student Aid website.

Delinquency and default

When your monthly payment is 30 days or more overdue you are considered delinquent. Most loan holders will contact you about delinquent payments and begin collection activity. Delinquency may be reported to a credit bureau which may damage your credit rating.

If you expect to have a problem making a monthly payment, contact your loan holder immediately. It is always easier to discuss alternatives before the due date rather than after a payment is late.

Borrowers who are 270 days behind on a scheduled payment are legally in default on the loan agreement. The loan holder can assume that you are not going to repay and may declare the entire amount you owe, including interest, as immediately due and payable.

For information on how to get support for paying your loans on time, go to the Federal Student Aid website.

Returning funds to your lender

It is your responsibility to cover any shortfall in the exchange rate when your funds are returned to your lender or the US Department of Education.