May grads, you knew this was coming. It's almost time to start repaying those student loans. Your six-month grace period on Federal Stafford loans is dwindling — it's time to think about the details of repayment, if you haven't already.
To help you out, here are some items to check off your list of repayment to-dos.
- Make a plan. Calculate how much your monthly student loan payments will be (be sure to calculate any private student loan payments as well). Make sure you have at least this amount in your budget. Can you allocate a bit more to your loans? Remember paying a little more each month can mean paying less over time. Does it look like your monthly obligations are going to be tough? Then check out the next to-do.
- Explore your repayment options. There are tons of repayment options for Federal Stafford loans. You can stay on a standard payment plan, extend your repayment if you have a certain amount of federal student loan debt, have your payments based on income if you qualify, combine your loans into one new loan or delay your payments in some circumstances.
Take some time to learn about all your options starting with these:
- Standard, extended, graduated and income-sensitive repayment plans
- Income Based Repayment
- Federal student loan consolidation
private student loan consolidation - Deferments and forbearances
As you explore your options, remember just because you can delay your repayment doesn't mean you should.
- Know how to contact your lenders. Staying in touch with your lender is a vital part of repayment. Keeping the lines of communication open will help your repayment go as smoothly as possible. Plus, if you hit a bump on your repayment road, talking with your lender about your options can help you get through the situation together.
- Decide how you'll make your payments. In this technological age, there are more options for payments than the traditional check through the mail. You may be able to manage your loan online. Check with your lender to see if they offer the option to make payments automatically or through your bank's online bill pay service. Making on-time payments is super important, so find the payment option that works for you to ensure your payments arrive to your lender on time.
- Keep your cosigner informed. I threw this one on the to-do list for those of you with private student loans. Chances are your private loan also has a cosigner whose credit is tied to the good repayment of that loan. Talk through your repayment plan with them to ease their mind a bit. After all, they did put their credit on the line for you.
So let us know: Are there any other items on your repayment to-do list?
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