It is possible that you took out multiple loans to help pay for college. This may mean that you will be making payments to more than one place, and you may also have different repayment terms. It is important to know the terms for each type of loan you have. Below is information about repayment for some loan types:
There are four basic rules to successfully repaying your student loans. While all cases are different, following these steps can ease the responsibility of repaying student loans.
The most effective way to ensure you are going to have enough cash to cover all your bills is to establish a monthly budget. The easiest way to determine what you are going to be able to spend each month is a budget calculator. (There are numerous free budget calculators on the web.) The first step towards developing an accurate budget is determining your take home pay after taxes. With this number established, use the calculator to subtract you expenditures such as housing, utilities, car bills, gas, medical expenses, groceries, credit card and other bills, student loans, entertainment and miscellaneous expenses. With this completed, you have a monthly budget to follow.
You are responsible for:
You are responsible for notifying your lender immediately in the event of:
Deferment: A deferment allows you to defer or postpone your scheduled monthly loan payments. Deferments may apply to PLUS loans, Federal Direct Loans and Federal Consolidation Loans.
Deferments last for different amounts of time. If you have already received a prior deferment, you may qualify for the same one again. In some cases, if you have exceeded the time limit on a particular deferment, you may no longer be eligible to apply for the same deferment.
During the deferment period, the federal government will pay the interest on subsidized loans. If you have an unsubsidized loan, you can save money by paying the interest at regular intervals; otherwise, the interest will be added to the loan principal.
Forbearance: If a borrower does not qualify for a deferment, they may request a forbearance. A forbearance allows the temporary reduction or postponement of the principal payments for periods of up to one year at a time. Forbearances are not automatic, however. You must apply for a forbearance in writing through your lender. You must supply documentation to support your request for a forbearance. You will also have to continue your payments until you are notified that your forbearance has been granted.
Cancellation: Loans will be canceled in the event of the borrower's death or if the borrower becomes totally and permanently disabled after the loan is distributed. In addition, Perkins and Direct loans may qualify for loan cancellation. For more information see the loan book.