The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s online mega-database of federal financial aid accounts. This database keeps track of all federal student grants and loans (Title IV financial aid) awarded to students through the FAFSA program, including FFELP and Direct Lending student loans.

The information about all these student loans comes from the institutions that loaned or manage the money awarded to borrowers via the FAFSA, including banks, financial institutions, loan guaranty agencies, individual schools, and the U.S. Department of Education (Direct Loans).

The National Student Loan Data System provides you with a convenient way to check on the status of your FAFSA loan yourself, without having to go to a physical location or wait in line or on hold to speak to a bank teller or customer service rep. By logging in to the National Student Loan online database, you can see what your loan status is 24/7 and find information such as:

• the FAFSA grant and loan amounts you were awarded
• how much money was paid out to you or your school, and when
• what your FAFSA loan’s outstanding balance is
• whether you are up-to-date or falling behind on any required interest payments or loan repayments

You’ll need a FAFSA PIN (Personal Identification Number) to check your FAFSA loan status at the National Student Loan Data System site. If you filed your FAFSA online, you already have a PIN. If you mailed in a paper FAFSA, you’ll need to get a PIN before you can check your account status.

You can find more information about getting a FAFSA PIN and checking your FAFSA loan status on the Frequently Asked Questions (FAQ) page of the federal Student Aid website.

How does the Income-based Repayment Plan work?

In a standard 10-year student loan repayment agreement, your monthly payment is calculated from the total amount you borrowed and the applicable interest rate applied over 10 years.

By contrast, under the income-based repayment program, your monthly payment is calculated from your Adjusted Gross Income (AGI) using a federal formula that adjusts for family size. The resulting amount is then divided by 12 to produce a consistent monthly repayment

Advantages of the Income-based Loan Repayment Plan

• Pay as you earn: Your IBR payment is calculated so you can pay off your student loan without draining your budget. Your monthly payments will likely be less than 10% of your income and will be capped at 15% – usually less than the amount you’d have to pay under a 10-year standard repayment plan. (If your IBR repayment turns out to be higher than what you’re paying under the 10-year standard repayment, then your lender may recommend that you stay with your original repayment agreement.)
• Don’t worry about loan interest for three years: If your IBR payment isn’t enough to cover the interest that accrues on your subsidized Stafford loan (either Direct Loan or FFEL), the government will pay your unpaid interest for up to three consecutive years. After three years, and for grad PLUS loans and consolidated loans, the accrued interest will be added to the loan principal only after you’re no longer is eligible for an IBR repayment amount.
• Longer repayment period, and loan cancellation: The loan repayment period for the IBR plan is 25 years (more than double the standard loan payment period). If you meet your IBR plan payments and obligations over that time, whatever loan debt you have left will be cancelled outright.

Drawbacks of the Income-based Loan Repayment Plan

There are also a couple of drawbacks to keep in mind when you evaluate the income-based repayment plan. One is financial, one is a matter of convenience.

• You may pay more interest over the long run. The faster you repay a loan, the less interest you pay; the longer you take to repay, the more interest you pay. Since the IBR plan will extend your repayment period, you’ll owe a lower monthly payment but you’ll pay more total interest over the life of the loan.
• More paperwork to do. To determine your IBR payment amount each year, your lender will ask you to provide updated information about your income and family size every year. If you don’t provide your lender with this documentation on time, your payment will revert to the standard 10-year repayment amount.
• IBR Plan may not benefit you if you’re married and file taxes jointly. Because of a poorly written rule in the program, the income of both spouses is counted as total income for the purposes of determining monthly affordability, even if there’s only one student loan to repay. This is rule will likely be changed in the future, but is in effect for the first year of the IBR plan.

The Project on Student Debt has a good FAQ section on the Income-based Repayment Plan.

How do you sign up for the Income-based Loan Repayment Plan?

Contact the financial institution you got your student loan from. Your lender will confirm your eligibility for the IBR program and calculate your final income-based payment for you.

Examples of Income-based Repayment Plan amounts by income

Source: U.S. Department of Education