As we finish up the semester and people are getting ready to walk the stage, I want to take the time to ease some stress that those inevitable loans may be causing. The best place to find your student loan information if you borrowed through the Free Application for Federal Student Aid (FAFSA) is the Federal Student Aid website. Here you can find all your loans, who your lender is and when payments will begin.
Two loans will primarily be focused on here: subsidized and unsubsidized loans. Subsidized loans do not gain interest while you are enrolled as a student or in your grace period, while unsubsidized loans gain interest from the moment you borrow, and said interest is then added to the principal amount.
Steps to ensure you stay informed of your loans:
- Know how much you owe and when you owe it. The Department of Education gives a grace period of six months after completing your program.
- Find a repayment that can work for you. The Federal Student Aid website has simulators and various payment options to find the best plan for your situation.
- Stay in contact with your loan servicer. As obvious as it sounds, keeping in touch with your servicer can offer alternatives if you ever run into financial difficulties.
As you prepare for life after graduation, this is a great time to begin thinking about a budget that reflects your upcoming loan payments. Understanding how your loans fit into your monthly expenses can ease stress.
If you’re able, consider making small early payments during your grace period to reduce the amount of interest that accrues over time. Taking small steps now can make a big difference later. If you ever have questions regarding loans or paying them back, reach out to the Financial Aid office here on campus.