Get to know your loans

Its that time of the year again--time to complete your Entrance Counseling and sign your Master Promissory Note. Don't you hate when you request your refund but can't get it until you complete entrance counseling? Get a head start and visit studentloans.gov and complete it now. Not only should you do that, but you should also do a little research on your loans.

Know your lender and have a plan.
This may seem basic, but you may have multiple loans from multiple sources. Contact your lenders to let them know when you are out of college and about to begin repayment. Can you set up payments online? What repayment plans are available? Check out your repayment plan options and remember you can manage your loan account online.

Stay prepared, stay in touch, and stay organized. Getting ready to repay loans means understanding your responsibilities and being ready to make good on them. Do you have any money saved to prepare for when you have to start repaying? It's a smart idea to put a little aside during your grace period (and before if possible) so the monthly payments have less effect on your monthly budget. Open all mail and e-mails you receive about student loans immediately, because the information can be vital and time-sensitive. Keep all files and communication about your loans organized, so you can stay on top of your payments and stay on track to repay them on time.

Should you consolidate? Consolidating multiple loans into one loan can simplify your payments.You can consolidate your federal loans as well as your private student loans. Plus, if your financial situation has changed or you apply with a cosigner who has good credit, you may qualify for better terms on a private consolidation loan. Keep in mind that by consolidating you're extending your repayment term, which may lower your monthly obligation, but could mean paying more interest over time. However, since student loans have no prepayment penalty, you could always make additional payments when you are able to do so.

Understand deferment and forbearance options. No matter how much you plan for repayment, you may still run into unexpected bumps in the road and need to postpone your payments. We offer several deferment options for federal loans. And if you experience financial hardship, can't make your payments and don't qualify for deferment, you should be aware of the option to get a loan forbearance.

Hope this helps!

Savvy Student