Student Loan Repayment Plan

Student Loans Repayment Plan

Student Loan Repayment Plan

When you start repaying your student loans, you may quickly become overwhelmed with the entire process – not to mention the amount of money that you now owe for your education. A student loan repayment plan must be taken very seriously, and there are certain responsibilities that you must be aware of.

First, before you ever got the first student loan, you carefully considered the need for that loan. Too often, students end up borrowing more than they actually need to pay for their education and this can cause a financial hardship later on. A student loans repayment plan should always be considered when you first consider applying for the loan. Getting the loan is typically very easy – paying it back is always the hard part. You can go to the FAFSA4caster to determine exactly what you will need to pay for college. The FAFSA4caster is an online tool that is available for free, and is being used by more and more students, parents, student counselors, and even financial aid experts when trying to calculate all cost a college student will need.

Second, be aware that if you fail to make your payments on time, your student loans could be defaulted. Default status on a student loan has extremely serious consequences. Your wages could be garnished. Any tax refunds owed to you will be held. Your credit could be in shreds, and there could be legal judgments against you.

Failure to complete your education does not make you any less liable for your student loans repayment. Everything that you borrowed must still be repaid, and if you received grants, and didn’t finish your education, you may have to pay those back as well in some cases. Failure to find employment after graduation isn’t an excuse either – although in this case, you may be able to get a deferment, which will postpone your payments for a time. If you are trying to get a deferment or forbearance, you must still make your payments while you wait for a decision from your lender.

You are responsible for making your student loan repayment on time, and in full. Partial payments are frowned upon, and could result in default. Typically, you will receive bills or notices before your due date, or you may have a coupon book to make your payments. However, even if you do not receive these notices, bills or coupons, it is still your responsibility to make your payment on time and in full.

Keep copies of everything! From the Promissory Note to the receipts for each payment you make and all correspondence with your lender. If you need to communicate with your lender, you can do so over the telephone, but always put the gist of the conversation in writing, and mail it to your lender, keeping a copy for yourself. You never know when you might need these things.

For a good student loan repayment plan it is your responsibility to notify your lender when you graduate, if you quit school, or if your status drops below half time. You must also notify your lender of any changes of address or telephone numbers, or names, in the event that you are female and you marry. Lenders must also be made aware if you transfer to a different school.

As you can see, there are many responsibilities that you need to be aware of and meet for a student loan repayment plan to work. Like any other type of situation not knowing what your responsibilities were isn’t an excuse for not meeting your responsibilities where repaying student loans are concerned. It is your responsibility to find out what you do not know! This will always be of utmost importance in any student loan repayment plan that will work.

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  1. Student Loan Forgiveness Programs | - pingback on January 18, 2010 at 2:42 pm
  2. felix isaiah lafal

    I want to apply for a loan to study at Maine Maritime Academy

  3. I want to applky for study loan

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