How to Get Started Dealing with Student Loans
Most student loans have a six-month grace period before you have to start making payments. If you graduated this past spring, that means now is a good time to get a grip on your student loans.
Here’s how:
Figure out which loans you have.
You’ll find all your federal student loans listed in the National Student Loan Data System. Check for private student loans by pulling a free copy of your credit report using AnnualCreditReport.com.
Decide whether consolidation makes sense for you.
Some student loan borrowers have two kinds of federal student loans, FFEL and Direct loans. Folks with FFEL loans planning careers in public service will need to consolidate into Direct to access Public Service Loan Forgiveness. And only Federal Direct Loans are eligible for the hottest income-based repayment plan, Pay As You Earn, so you may need to consolidate to get the lowest possible payment.
Choose a repayment plan.
Choosing a repayment plan can be confusing, but if you don’t choose a repayment plan within 45 days of being notified, your loan servicer will automatically put you into a “standard” repayment plan. Use the Department of Education’s Repayment Estimator to estimate repayment amounts under the different repayment plans. If you need reduced monthly payments, consider the income driven repayment options. Monthly payments are based on a percentage of income so that when you don’t earn a lot, your payments are low. You’ll need to determine which income driven options are available to you, and evaluate which of the available options provides the most benefits.
Login to studentloans.gov using your four-digit PIN to estimate your payments.
