Student Loan Repayment | OCTC

Student Loan Repayment

Federal Student Loan Repayment Plans

  • You can pick from repayment plans that base your monthly payment on your income or plans that give you a fixed monthly payment
  • Repayment plans based on your income are a smart choice t lower your payment. For example, payment son the Saving on a Valuable Education (SAVE) Plan are no more than 10% of your discretionary income. The lower your income—or the larger your family size— the less you’ll pay each month.
  • If ou don’t pick a repayment plan, your loan servicer will place you on the Standard Repayment Plan (a 10-year foxed payment repayment plan). This plan might result in a higher monthly payment for you.

You can compare student loan repayment plans and use the loan simulator to calculate your monthly payment.

Fresh Start Initiative for Defaulted Loan Borrowers

Defaulted student loan borrowers may be eligible to regain financial aid eligibility through the recently announced “Fresh Start” initiative. The “Fresh Start” helps eligible borrowers in default by restoring Title IV aid eligibility if their loans were in default prior to the student loan repayment pause that began on March 13, 2020. You can find more information about the Fresh Start Initiative and determine if your loans are eligible for this “fresh start” here.

Eligible Loans:

  • Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans
  • Defaulted Federal Family Education Loan (FFEL) Program loans
  • Defaulted Perkins Loans held by ED

Ineligible Loans:

  • Defaulted Perkins Loans held by schools
  • Defaulted Health Education Assistance Loan Program loans
  • Student loans remaining with the U.S. Department of Justice for ongoing litigation
  • Direct Loans that default after the end of the COVID-19 student loan payment pause, unless enrolled in Fresh Start Program
  • FFEL Program loans that default after the end of the COVID-19 student loan payment pause


For students who are eligible for the Fresh Start initiative: please complete a Borrower Acknowledgment Form and email to or submit to the financial aid office.

*Please Note: The Borrower Acknowledgment form must contain an actual or hand drawn signature. We cannot accept a typed or digital signature. The Fresh Start initiative only helps students with eligible loans regain eligibility from a default status. Students must still meet other title IV aid eligibility (e.g., maintaining satisfactory academic progress, not owing an overpayment on title IV grants, etc.) to receive financial aid.