For many students graduating college, the biggest challenge they face is when and how to begin paying back their college loans. About two-thirds of students borrow money to pay for college, so this is no small issue.
In 2007, the median debt of students who graduate from four-year private colleges is about $20,000, and it is about $16,000 for students graduating from public colleges, according to the College Board.
Students graduating with loans to repay are advised to follow these steps:
Due to the way college costs are financed, students typically end up with five to seven loans at graduation. Each loan can be for a different amount and carry a different interest rate. It’s important to take an inventory of all of your loans to know when you must begin repayment. Most loans (federal and private) will be in deferment for the first six months after graduation, which means you do not have to make payments during that time. You will need to know when payments are due, and how much the payment is for each loan. Also, you’ll want to update your contact information with the lenders (you may have moved) and get updated contact information on them, since some of your loans may have been sold to another company, which will now collect the payments. This is important, so you will receive important notices and know where to send payments.
I hope this helps!
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