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Manage Your Student Loans Student loans must be repaid after you graduate from college, leave school for any reason, or drop below half-time enrollment status. It is your responsibility to track these loans and make payments when required. Keep your student loan debt to a minimum! Accept only the amount of money you need to pay for essentials (tuition, fees, books). Return refunds to your lender to reduce your loan amount. Think about it. Do you really want to take a loan out to buy pizza or some extra clothes? As interest accrues over your four years in college, that pizza could end up costing you more than you thought! Importance of On-time Payments Many lenders offer incentives for on-time payments in the form of rebates or interest rate reductions. If you fail to make your payments (even your first loan payment) on-time, you could lose that incentive and end up costing yourself thousands of dollars. It is your responsibility to track your loans and know when payments are due. Once lost, most loan incentives cannot be reinstated. Read the fine print carefully! Your student loans are often the first items reported on your credit report. Making on-time payments will allow you to keep a good credit score. Failure to make payments will result in the following:
In addition, a poor credit history can make it difficult for you to purchase a car or your first home. A poor credit history can also result in higher interest rates on these items if you are approved. Track Your Student Loans: Your student loans are your responsibility. Keep copies of all loan documents, promissory notes, notices of guarantee, and loan disclosures sent to you by the lender. Inform your lender of any changes to your address, name, and enrollment status at school. Be prepared to make student loan payments six months after you graduate, leave school, or drop below a half-time enrollment status. If you are unable to make payments at any time, contact your lender for information on deferments and forbearances or lower payments. By postponing payments through a lender approved deferment or forbearance you prevent negative credit bureau reporting and remain eligible for on-time repayment incentives.
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