As if there's not enough welcoming you to that "real world" your parents and professors warned you about, your student loan grace period is nearing the end, and it's time to pay up.
Luckily, you have repayment options.
The paper chase After graduation, you are allowed a six-month grace period before your first student loan payment is due. During "grace," your lender or loan servicer should send you a Repayment Schedule and Disclosure Statement that details your repayment terms. It's a good idea to keep all your student loan paperwork and crosscheck it against the statement from your lender at the end of school. Call your lender or servicer if you do not receive repayment information during your grace period, because timely repayment is still your responsibility, even if you don't receive the billing statement.
Pick your payment structure If you borrow federal funds to pay for college, you may choose from several repayment plans.
- Standard repayment requires a fixed monthly payment for up to 10 years.
- Graduated repayment lets you remit an initial low monthly payment that gradually increases over a 10-year period.
- Income-sensitive repayment allows you to make reduced monthly payments based on your income (with proper documentation) and loan balance.
- Extended repayment is available to some borrowers with more than $30,000 in student loans and offers fixed or graduated payments over a maximum period of 25 years.
If you don't choose a plan, you will automatically receive standard repayment, so contact your lender or loan servicer to discuss your needs as soon as possible. Find the right repayment schedule for you with Nellie Mae's calculators.
If you borrow a private loan for college, contact your lender for repayment options.
Don't be afraid to raise your hand Student loans must be repaid and, most times, college debt is a pretty hefty responsibility for young adults. So when you're unsure about the right repayment strategy, ask the experts. Your lender or servicer will be happy to help you reach a repayment arrangement you'll be comfortable with for the long term.
For tips on how to budget your new monthly expenses—and what all the fine print in your mailbox means—download our exit counseling guide. There is a lot to learn about repaying your student loans, but at least this education is free.