Recent grads, have you made your first student loan payment?
If not, it’s coming. The six-month grace period of Federal Stafford Loans is ending for May graduates, which means it’s time to repay.
Here are a few ideas to start your repayment off the right way:
Pay on time. One of the best things you can do to build your credit history and stay on good terms with your lender is to make on-time payments. Stay on top of due dates by managing your loan online. You can even make it simpler by signing up for automatic payments.
Pay more. A little extra can go a long way when it comes to saving money over time. Each dollar you pay in addition to your minimum payment means one less dollar to pay interest on. The savings can really add up.
Consolidate. If you want to make one student loan payment to one lender instead of several, you can consolidate your federal student loans through the government and private student loans through lenders like Wells Fargo. Plus, there’s an added bonus to private student loan consolidation: You may qualify for a better rate than you had on previous loans if your situation has changed.
Talk with your lender. We know some borrowers may have trouble repaying. The important thing is that you talk to your lender about your options. You may qualify for a deferment or forbearance. Or you may be able to pay on an income-sensitive, graduated, or extended schedule.
For those of you already repaying your student loans, what tips do you have on starting repayment on the right foot?