What to Do When Your First Student Loan Payment Is Due
BY ANNA HELHOSKI
Within the next few months, if not sooner, the first student loan bills will arrive for the Class of 2020. If the grads are able to stick to the standard plan, they’ll make payments every month for the next 10 years and be done with it. But not all borrowers will knock out their loans so quickly. Among federal loan borrowers who began taking on debt in 2003-2004, just 1 in 4 had paid off their debt by 2015, according to the most recent data from the National Center for Education Statistics. As for the students with debt remaining, about 39% were still in repayment. This year’s recent graduates can improve their odds by setting a plan now to pay back the debt and stay on track moving forward, no matter what obstacles pop up. “A plan will alleviate the stress you feel when you’re unsure about what life looks like after college, and you have this debt to pay,” says Tracie Miller-Nobles, an associate professor at Austin Community College and a member of the American Institute of CPAs’ Consumer Financial Education Advocates. Here’s how to create a strategy.
GET DETAILS ON ALL LOANS
Don’t wait to find out how much money you owe. There’s a chance your bill won’t arrive before your first due date, student loans experts say. “Just because you don’t get a bill doesn’t mean you don’t owe the money,” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors. For federal loans, go to the student aid website at studentaid.gov. To find private debt, visit annualcreditreport.com for a credit report, which lists private loan debt and the lender. Once you know who holds the loans, call it to check or update your contact information. You can also create an online account to track payments.
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