Prepare for student loan repayment

Start making payments (to yourself)

When you accepted your federal student loan offers as a student, you signed a promissory note agreeing to pay everything back six months after graduating. To financially prepare yourself, get into the habit of making loan payments to your savings account. During those six months leading up to your first payment, make an effort to save your average monthly payment amount instead of spending it. After your six months of grace is over, those loan providers will come flooding your emails requesting for payment. Fortunately, you’ll have at least six months’ worth of payments saved and the discipline to start paying them off.

Choose the right repayment plan

There are a variety of repayment plans to choose from based on your financial situation. Before payments begin, you will be asked to choose a plan. If you don’t choose a plan, your loan provider will automatically place you on the Standard Plan – which requires fixed monthly payments over a 10 year course. To learn more about each detailed plan, visit the Federal Student Aid’s list of repayment plans.

Consolidate your loans

If you’re looking to simplify your repayments, you may want to consider loan consolidation. If you have multiple federal loans, combining them into single monthly payments can be beneficial. Remember, there are cons to loan consolidation, such as longer loan terms or losing certain borrower benefits. Be sure to do your research to find out if consolidation is right for you.

If you are a recent graduate, starting your first job or just need financial advice, Travis Credit Union offers free confidential financial counseling. Through our partnership with the BALANCE Financial Fitness Program, members have access to professional financial education resources for all of life’s stages.

Federal Student Aid BALANCE