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Student Loan Repayment Information

Graduating from College:

What You Need to Know

                    

Repaying Your Student Loans

 

Federal:  Federal student loans are real loans and must be repaid. Know what you owe by logging onto the National Student Loan Data System (NSLDS) at www.nslds.ed.gov with your Federal (FAFSA) PIN.

The longer you take to repay your student loans, the more you will pay over the life of the loan.  Once your loans are paid off, more of your earnings can go to discretionary expenses such as a car, vacation, home ownership, investments etc.

Get all the information you need to manage repayment of your federal student loans at http://studentaid.ed.gov/repay-loans

Decide on a repayment plan.  View your options at http://studentaid.ed.gov/repay-loans#repayment-plans

 

 

Private:  If you took out private student loans, you will need to contact your lender directly to determine what you owe and your repayment options.

If, however, you cannot pay off your loans quickly or in the 10 year standard repayment period, speak to the servicer of your loan to pick a repayment option that will work for you.

 

Calculating your loan payment

Go to one of these loan calculators to find out what your monthly payment will be and discover how much interest you will pay over the life of the loan.  Try lowering your repayment period and see that your monthly payment will go up but the amount of interest will go down.

https://mappingyourfuture.org/paying/standardcalculator.cfm

http://studentaid.ed.gov/repay-loans/understand/plans

 

 

 

Consolidation

If you have taken out several loans, you may be able to consolidate them into one loan and make only one monthly payment. However, depending on which repayment plan you choose, this may increase your total amount paid to the loan. Please note that you may lose borrower benefits by consolidating your loans. You should contact the servicer of your loans to weigh the pros and cons of consolidation.  You cannot consolidate your Federal and Private loans together.

Federal: Consolidation for eligible Federal loans is available only through the Federal Government http://loanconsolidation.ed.gov/

Private: Consolidation for eligible private loans is available only through Wells-Fargo https://www.wellsfargo.com/student/consolidateloans/privatestudentloans and Citizens  Bank http://www.citizensbank.com/student-loans/education-refinance-loan.aspx

 

 

Don’t Jeopardize Your Financial Future

Remember that making your student loan payment on time each month will help you build your credit and not being responsible for your repayment will hurt your credit and thus your future opportunities. If you are having trouble making your monthly loan payments you will need to contact your lender for assistance.

 

Deduct Student Loan Interest from Your Taxes

You may be able to take a tax deduction for the interest paid on student loans that you took out for yourself, your spouse, or your dependent. This benefit applies to all loans (not just federal student loans) used to pay for higher education expenses and is available even if you do not itemize deductions. The maximum deduction is $2,500 a year.

There are income limits on the deduction along with other restrictions.  Please consult the IRS or a qualified tax advisor for complete information.