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 Success in Repayment:
A Plan to Stay on Track
Success in repaying your student loans doesn’t just mean staying out
of default. It also means staying out of delinquency - keeping your account
current. This may not always be easy, but we think these steps will help:
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- Know Your Rights and Responsibilities.
At the time you took out your loan, your lender sent you a document that
explained your Rights and Responsibilities. If you have entered repayment,
it’s likely they sent you another copy at that time. If you’ve misplaced it,
call your lender or servicer; they’ll be happy to send you another. For a list of
servicers with contact numbers and e-mail addresses, click here.
- Know Your Repayment Options.
A loan from the Federal Family Education Loan Program (FFELP) offers many
more options for repayment than most forms of credit. To find out more, visit
our Overview
of Options.
- Keep in Touch.
Stay in close contact with your lender or servicer. Make sure they
hear from you whenever you have a change in your:
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School enrollment |
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Employment |
If they haven’t heard from you for a while, you may want
to contact them now. Click here for
a list of servicers with contact numbers and e-mail addresses.
- Keep Your Credit Cards Under Control.
Or, better yet, avoid them completely until you know you’re on solid financial
ground. Your credit card balances are harder to pay off than your student
loans because their interest rates are so much higher. Remember, your student
loan is probably the first loan you borrowed. It should be the first one you
pay off. Don’t let a lot of other debt get in the way of doing that.
- Ask for Help.
If you’re having difficulty repaying your loans, don’t be afraid to talk
it over with your lender or servicer. Or your guarantor. Or us.
We all want to see you be successful in repayment. Generally, the earlier
you ask for help, the easier it is to get it.
- Make a Budget.
And make sure that it includes your monthly student loan payment.
Need help in creating a budget? Click here.
- Automate Your Payments.
We strongly recommend making payments by automatic monthly deductions from
your checking account. This removes the hassle of writing and mailing a check
each month. It also removes the temptation of using your funds for something
else. It may also make repayment cheaper for you: Many lenders and servicers
offer interest rate deductions to borrowers who make their payments this way.
Your lender or servicer may also offer a rate reduction if you remain current for
a specified period. The surest way to remain current is to make automatic
payments.
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