Whether you just graduated, you’re taking a break from school, or have already started repaying your student loans, these tips will help you keep your student loan debt under control.
By “under control” I’m talking about
- avoiding fees and extra interest costs
- keeping your payments affordable
- protecting your credit rating
- paying those loans in full as quickly as possible
If you’re having trouble finding a job or keeping up with your payments, there’s vitally important information here for you, too.
1. Know your loans
It’s crucial that you keep track of the lender, balance and repayment status for each of your student loans. These details determine your options for loan repayment and possibilities for forgiveness.
If you’re not sure, ask your lender or visit NSLDS.ed.gov. You can log in and see the loan amounts, lender(s), and repayment status for all of your federal loans.
In the event that some of your loans aren’t listed, they’re probably private (non-federal) loans. For those, try to find a recent billing statement or the original paperwork that you signed. Contact your school if you can’t locate any records.
2. Know your grace period
Different loans have different grace periods. A grace period is the amount of time between leaving school before you must make your first payment.
It’s six months for federal Stafford loans, but nine months for federal Perkins loans.
(Under federal law, the authority for schools to make new Perkins Loans ended on Sept. 30, 2017, and final disbursements were permitted through June 30, 2018. As a result, students can no longer receive Perkins Loans.)
For the federal parent or PLUS loans, there is no grace period. When payments begin depends on when the loans were issued (see details).
The grace periods for private student loans vary, so consult your paperwork or contact your lender to find out. Don’t miss your first payment.