What To Do With Student Loans Post Graduation
Four years of hard work have finally paid off – you’ve graduated from college and endless possibilities are on the horizon. It’s a fresh start, a new beginning. That is, except for one nagging issue you’d rather soon forget: your student loans. Now that you have officially graduated, you must start making payments on your student loans as they begin accruing interest. Consider the following when you are ready to begin paying down your student loan debt:
Know the Terms
Determine exactly how much money you currently owe and when you have to begin student loan repayment. Students can have multiple loans at graduation with varying timetables and interest rates. Some loans defer payment until six months after graduation. Be sure you understand the terms of each loan so you can devise a plan for paying them off.
Update your information
By the time you have graduated, some of your loans may have been sold to other companies. Be sure you have updated contact information for all your lenders and they have yours as well. This is very important because you will receive important notifications and send payments through the mail.
Consolidate
If you have loans borrowed from a variety of lenders, consider student loan consolidation and combine them all into one loan with one lender. You will most likely have a combination of federal student loans and private student loans. Consolidation will simplify repayment and fix your interest rate. Be sure, however, that consolidating your loans will secure you a lower student loan interest rate.
Plan Payments
Determine over what period of time you want to pay your loans back. If you aren’t making a lot of money right now, you will most likely be able to write-off the interest for quite a while. The Early Show’s Ray Martin advises that payments should not exceed 15 percent of your monthly gross income. After you have organized a plan of attack, all that’s left is for you to make your payments on time to ensure your credit remains intact.