Paying for graduate or undergraduate school can be demanding. Some of us are fortunate to qualify for merit-based scholarships which decrease the amount of student loans we take since scholarships rarely ever cover the full tuition. Federal and private loans usually make up the deficit. Loans can be complicated without guidance. Often, acquiring a loan seems easy, but repaying it comes with various complications. Recent studies have shown that many borrowers, despite being intellectuals, often have no idea what type of loan they have or how to repay it.
So when do you have to start paying your college loans? For recent graduates, repayment generally starts in November or December, after you've settled and hopefully landed a job before making your payments. Here are some simple steps on how to monitor and repay your loans:
- Create a filing system to help everything go smoothly and make sure your loan server has your correct information.
- If you move, it is your responsibility to notify your loan servicer and provide them your new address.
- It is important to know whether you have a federal or private loan. If you have a federal loan, it is important to choose a repayment plan with the highest monthly plan you can afford. Long-term repayment plans have lower monthly plans but cost more in interest.