. Many graduate students--especially law and health professions students--face the common challenge of having high student loan debt from both federal and private loan sources. However, repayment strategies that work best often depend on individual circumstances and career plans.

Here are some general guidelines for managing student loan repayment after graduate school.

1. Attend exit counseling before you leave school. Following your exit interview, you should understand clearly--

  • What you owe, including the types of loans you borrowed, your principal loan amounts, the current amounts owed if interest has accrued, the interest rates on your loans, and the amount of your monthly payments.
  • When you have to begin repaying your loans, including any grace periods on your loans, deferment or forbearance options, and repayment plans.
  • To whom you must repay your loans, including the original lender and current servicer (if different) of your loans, and how to contact them.

    You can access information about your federal Title IV loans (Stafford, Perkins, SLS) at www.nslds.ed.gov. For private loans, check your lender's web site.

    2. Pay interest during deferment/forbearance periods, whenever possible. If you will be deferring principal loan payments following graduation, such as during a period of economic hardship, it's a good practice to make voluntary interest payments. This will not only help reduce your overall debt by avoiding capitalization, it will also help you get into the "habit" of repaying. Also, you may be able to claim a deduction on your federal tax return for student loan interest paid during the year. Here is an example of potential tax savings.

    3. Simplify loan repayment.

  • Keep organized records of your loans, including: opening and reading all loan-related mail; acting on issues that require attention; and keeping a record of communications.
  • Sign up for auto-debit loan payment. Although you will still have to remember to enter monthly withdrawals in your checkbook register, this type of payment arrangement reduces your incoming bills, saves time and stamps, and safeguards against late payments. Also, your lender may offer a reduced interest rate for loans paid through auto-debit or other repayment benefits following a certain number of on-time monthly payments.