Student Loan Repayment

Student Loan Repayment Step 1: Know Your Loans Before you signed the loan offer, did you take a moment to read the fine print? If not, now is the time to do so before you commence repayment. You will want to grasp an understanding of the following: What is your lender's name and contact information? What is the current outstanding balance? How much will the loan cost you? What is the interest rate? Are there any fees associated with your student loans? How much will your monthly payments be? What are your repayment options? Does your loan have a grace period? Is your loan subsidized or unsubsidized? Related Articles Student Loan Forgiveness Program Student Loan Forgiveness Program How to Pay Back Student Loans With Simple Strategies How to Pay Back Student Loans With Simple Strategies How to Get a Student Loan Deferment How to Get a Student Loan Deferment Step 2: Contact Your Loan Servicer Once you have gathered all the pertinent details about your loans, you will want to contact the loan servicer to confirm the official due date of your first payment. You will also want to inquire about the acceptable forms of payment and any other pertinent details you should know regarding the repayment of your debt. Step 3: Select a Repayment Plan Depending on the type of loan you have, there may be some flexibility available with regards to repayment. Federal Loans The U.S. Department of Education offers the following repayment plans: Standard: Payments are fixed over the life of the loan. This plan is available for Direct Subsidized and Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans, all PLUS loans and all Consolidation Loans. Graduated: Payments increase every two years. This plan is available for the same loan types as the standard repayment plan. Extended: You can choose from standard or graduated payments, but the loan term is lengthier. This plan is also available for the same loan types as the standard repayment plan. Income-Based: These include the Pay as You Earn, Income Contingent and Income Sensitive arrangements. These plans are available for Direct Subsidized and Unsubsidized Loans, Subsidized and Unsubsidized Federal Stafford Loans, all PLUS loans made to students and Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents.