You know that you need to repay your student loans – but did you know that there are several repayment plans available? These can provide you with flexibility to only pay the interest, defer the loan for a set amount of time, or pay on a regular schedule and pay them off sooner!
Here are some things you should know:
- You’ll be asked to choose a repayment plan. If you don’t choose one, you will be placed on the Standard Repayment Plan, which will have your loans paid off in 10 years.
- You can switch to a different plan at any time to adjust to your financial situation.
- Your monthly repayment can be based on how much money you make after graduation (income driven repayment plan).
How to Make a Payment: Your loan servicer will handle all of your billing, so you’ll need to make payments directly to them. Each company has its own payment process and can work with you if you need help making your payments.
It’s important to never miss a payment. You can typically sign up for automatic payments, and your payments will be taken out automatically from your bank account. Some lenders will even offer a percentage off of your interest rate just for enrolling in automatic payments!
What to Do If You Can’t Afford Your Payments: If you’re having trouble making payments, don’t just ignore your loans. There are several options that can help keep your loans in good standing, even if your finances are tight:
- Change your payment due date
- Change your repayment plan
- Consolidate your loans
If these options don’t work for you and you simply just can’t make your payments right now, you may be eligible to postpone your payments through a deferment or forbearance. Depending on the type of loan you have, interest may still accrue on your loan during the time that you aren’t making payments.
For more information on repayment
plans, contact your loan servicer, or visit https://studentaid.ed.gov/sa/repay-loans.