Student Loan Repayment
It's never too early to start thinking about how you will repay your student loans after graduation. Listed below are links that provide information on the different types of repayment plans and options that are available to help in managing your student loans. If you'd like to project your future monthly payments to fit those into your budget, please schedule a one-on-one coaching session.
For information about automatic forbearance and interest freezes as part of the CARES Act due to COVID-19, please visit this Federal Student Aid Information Page.
Plan for Repayment
After graduation, your Federal Loans will enter a 6-month grace period when payments are not required. After the grace period, you will either enter repayment or you will apply for forbearance. During forbearance, payments are not required, but interest will accrue on your loans. Federal Student Aid has lots of helpful information about repayment during and after enrollment.
Choose a Repayment Plan
The default repayment plan is Standard Repayment. With this plan, monthly payments will be an equal amount over 10-years. The Standard plan pays back the loan in the most aggressive and efficient manner, however it can also be costly. Use the Federal Student Aid Loan Simulator to estimate your monthly payment on the 10-year Standard plan. Income-driven repayment plans are also available, which determine how much you will pay each month based on your income rather than on what you owe. This is a great way to keep your monthly payments manageable, but keep in mind that more interest will accrue so you'll ultimately pay more back. Visit the Federal Student Aid website to compare requirements and eligibility.
Complete all Required Forms
If you sign up for one of the income-driven plans, be sure to complete the necessary income verification form for your servicer and provide any necessary tax or income verification. You will need to provide this verification each year that you are on the income-driven plan. If you plan to apply for Public Service Loan Forgiveness, you will need to complete the Employment Certification Form from Fed Loan Servicing.
Repaying Private Loans
If you borrowed a mixture of federal and private loans, the Consumer Financial Protection Bureau (CFPB) offers a student debt calculator that can be helpful.