Student Loan Payments

After you have received your degree, left school, or if you've dropped to a part-time student (less than half time), you'll have some time before you start your student loan payments.

  • If you have Federal (FFEL) or Direct Stafford Loans your loan payment begins in six months.
  • If you have Federal Perkins Loans your loan payment begins in nine months.

You're loan provider should contact you with repayment information and the date your student loan payment begins. It is extremely important that you make your full payment on-time in accordance to your repayment schedule. If you don't, you'll soon be in default and that has some serious consequences. You must pay back your student loans - just like a car loan or a mortgage.

Paying Back Your Student Loans

Should you have a FFEL or a Direct Loan, you have options in repayment plans. Federal Perkins Loans however, don't have repayment plan options and you typically need to repay your student loan within 10 years. Again, it is extremely important that you make your full payment on time in accordance to your repayment schedule. If you don't, you'll soon be in default and that has some serious consequences.

Monthly Student Loan Payments

You're monthly installment depends on the amount of money you have borrowed for your education plus any interest that has accumulated since disbursement. Your loan provider should provide you with either a billing statement or a coupon book. But, you must make your payments on-time, even if you don't receive these.

Your Loan Amount May be More Than You Borrowed

Because unsubsidized Stafford loans accrue interest, this interest amount is capitalized (added to your principal) automatically. Also, there are fees charged for Direct and Stafford loans in the amount of 4 percent. This fee is deducted proportionally with every disbursement, so the amount you receive is actually less than the amount borrowed. You are responsible for paying the entire amount borrowed, not just the amount received.

Related Student Loans Ed Web Pages » Free Student Loan Consolidation
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