How to prepare to pay your student loans after graduation.

When you graduate, leave school, or drop below part-time, most federal student loans enter a 6-month grace period.¹ This means you are not required to make payments on your student loans for 6-months. However, interest will still accrue on your loans during this time. Private loans may not offer a grace period and require a payment soon after you leave school.

As you settle into a new job and adjust to life outside of school, it’s time to start saving and make a plan to pay back your student loans.

Review your loans.

If you’re not sure who your current loan servicer is, visit the Federal Student Aid website at www.studentaid.gov and log in to your account.² In your account, you’ll be able to see your loan details.

If you already know which company services your loan, log in to your account and make sure your contact information is up to date. In your account, you should be able to find information about when your first payment is due and the amount of your payment. Some loan servicers offer a discount on your loans if you sign up for automatic payments, so it might be a good idea to set this up while you’re in your account.

Make a budget.

If you’ve never made a household budget, now is the time to start. Keeping track of where your money is going each month can help you visually see your biggest spending categories. Tracking your income and spending makes it easier to find ways to cut back, save more, adjust your spending, and work toward your goals.

Budgeting can also help reduce stress around your finances. If you plan out where your money is going each month and review your upcoming payments, you’ll know exactly when and how much money is coming out of your account, leaving less room for surprises.

Get started on your budget today by checking out our article on how to create (and keep) a budget.

Consider a refinance.

Refinancing your student loans³ could lower your monthly payment or reduce the term of your loans (the amount of time you’re scheduled to make loan payments). If you have a few loans with different lenders, refinancing can also help you consolidate your student loans into one easy monthly payment.⁴ Just keep in mind that if you plan to refinance federal student loans with a private lender, you’ll lose access to any current and/or future federal student loan benefits, such as potential debt cancelation or income-driven repayment options. 

Check out the student loan refinance calculator³ from our partner at Student Choice to get an idea of how your loan payment could change with a refinance.

Review repayment plans.

The Federal Student Aid website³ has a loan simulator tool that can help you determine the best strategy to repay your federal student loans. They also offer options on what to do if you’re struggling to make your payments. On this site, you can find information about Income-Driven Repayment (IDR) Plans, where you could qualify for a lower monthly payment based on your income and family size.

You can also contact your specific federal student loan servicer to see what repayment options and plans they have in place.

Resources to help.

Through our partnership with Student Choice, you can speak with a college counselor who can help review your repayment and refinancing options. Visit the Student Choice website³ to schedule an appointment with a college counselor today.

If you need help creating a debt management plan, our partners at GreenPath Financial Wellness³ offer financial counseling services. They can also help you access educational resources to help you get your finances back on track.

Remember our team is always here to help you if you’re having trouble making other loan payments at Lake Trust. Just give us a call at 888.267.7200, visit any Lake Trust branch, or start a secure chat by logging in to Online Banking. Your financial wellbeing matters to us. And we’re here to support you on the road to success.

¹Federal Student Aid. (2023, September 20). Student Loan Repayment. Retrieved from https://studentaid.gov/manage-loans/repayment#when-begin

²CU Student Choice. (2023, June 30). Federal Student Loan Payments Resume Soon – What You Need to Know. Retrieved from https://www.studentchoice.org/federal-student-loan-payments-resume-soon/

³Third party website. Lake Trust Credit Union is not responsible for the content, availability, security or compliance of any linked third-party websites. In addition, the site's privacy policies may differ from those of Lake Trust.

⁴IMPORTANT NOTICE: Federal loans offer certain benefits and protections that do not transfer to a private loan. If you refinance some or all of your federal student loans into a private student loan with a credit union, you will lose access to any current and/or future federal student loan benefits, such as potential debt cancellation or income-driven repayment options. With the latesst announcement from the Biden administration, it’s more important than ever to evaluate your options if you have federal student loans so that you can make educated decisions. Make sure to explore all available resources by visiting the Department of Education’s website at www.studentaid.gov or contacting your federal student loan servicer to understand how any federal student loan proposals may impact you, so that you can determine if having access to federal student loan benefits outweigh the benefits of refinancing your loans. All loans subject to credit qualification and additional criteria, including graduating from an approved school. You may qualify for a Federal Direct Consolidation Loan. For additional information about a consolidation option for federal loans, contact the Department of Education at http://studentloans.gov/.² See Important Disclosures | Lake Trust CU² for more details.