Managing Student Debt

Managing Student Debt

How to Pay for College

Paying off student loan debt can be a long, complicated, and often hard process, one that can put a significant pressure on an individual's finances, influence major life decisions, and put healthy credit at risk. With so much at stake, how can borrowers best manage their student loan debt?

Below are some key points on how to manage your student loan debt:

  • Know Your Loans
    • If you need to borrow for school, for those who qualify, look first to federal student loans.All college students should fill out the FAFSA (Free Application for Federal Student Aid).Submitting a FAFSA is necessary for participation in any federal student aid program for those who qualify, even those that do not depend on financial need.
    • Check out the National Student Loan Data System (NSLDS) to find a complete listing of all your federal student loans. You will need yourFSA ID to access your information.
  • Stay in Touch with Your Loan Servicer
    • Loan servicers send lots of important information to borrowers, including information about when your payments begin and how to select a repayment plan. If you miss your servicer's communications, you will be enrolled in the standard repayment plan.
    • It is very important that your new phone numbers, email addresses, and mailing addresses are updated with your lenders.
  • Pick the Right Repayment Option
    • You have a choice of several repayment plans that are designed to meet your needs. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose.
  • Know Your Resources
    • National Student Loan Data System (NSLDS) to find a complete listing of all your federal student loans. You will need your FSA ID to access your information. 
    • Studentaid.gov to find comprehensive federal student aid information and loan repayment calculators from the U.S. Department of Education.
    • Studentaid.gov also provides tools for managing federal student loans, including access to your account information and repayment estimator from the U.S. Department of Education.
    • Consumer Financial Protection Bureau - Student loan decision tree from the Consumer Financial Protection Bureau.
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