Prepare for your first student loan payment before it’s due so you can get off on the right foot with your repayment.
Read more” > Emily Guy Birken Edited by Credible’s editing process includes rigorous fact-checking by experts to ensure that all content is accurate and up-to-date. This article has been reviewed, edited, and fact-checked by Jared Hughes. As a Credible authority on student loans, Jared covers topics including student loans and student loan refinancing.Read more” > Jared Hughes
Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
Federal student loans don’t require you to make payments while you are still enrolled at least half-time in school. In fact, there is an additional grace period after leaving school before you have to start making payments on your federal loans. This is unlike private student loans, which generally require immediate repayment, even if you are currently in school.
Understanding when your first student loan payments are due can help you plan ahead for repayment.
Here’s what you need to know about your first student loan payment:
For most federal student loans, you won’t have to make your first payment until the end of your grace period. The federal student loan grace period is the set amount of time, from a starting point up to a given point, in which there isn’t a penalty for delayed payment.
In most cases, this eligible grace period lasts for six months and begins once you have committed any of the following:
Check Out: Grants to Pay Off Student Loans for 2022
To make sure you are prepared for your first loan payment, follow these steps:
Your student loan servicer will contact you via letter or email to remind you about when your first payment is due and the process for repayment. But if you have not received a letter from your loan servicer, you can find that information on the studentaid.gov website when you log in to your account dashboard.
Alternatively, if you’re not sure how to log into your account, you can call the Federal Student Aid Information Center (FSAIC) at 800-433-3243 to find out your loan servicer and get help with your account.
Read More: What Is a Student Aid Report?
The easiest way to consistently make on-time payments is to sign up for autopay. If you’re not able to use the automatic payment option because of irregular income, then set up a recurring calendar alert to remind you of your monthly payment several days before it is due.
The balance, interest rate, and loan term on your student loan determines both your monthly payment and the full cost of your loan over its entire life.
For federal student loans, interest rates are fixed, and the amount you pay depends on the type of loan you take and first disbursement date of your loan. For example, a student who borrows an undergraduate federal Direct Loan that is disbursed after July 1, 2022 and before July 1, 2023 will pay a fixed interest rate of 4.99% on their loan.
The loan term is the number of years you’ll be making payments before paying off the loan. Federal student loans have a standard repayment term of 10 years, but some repayment plans allow you to make payments for 20 or 25 years.
Understanding your interest rate and loan term can help you plan ahead of repayment.
Keep Reading: 8 Best Alternatives to Discontinued USAA Student Loans
The U.S. Department of Education offers multiple repayment plans for borrowers. These include:
Payment amounts are recalculated every year, based on your income, family size, and amount owed. Any balance remaining after 25 years on the ICR plan is forgiven.
Take your time to review each repayment plan or use a student loan repayment calculator to be sure of your strategy.
You will need to follow these steps to make your first payment (including if you decide to prepay before the grace period ends):
Most borrowers will be paying off their student loans for at least 10 years or longer, so it’s important to plan your repayment as a long-term strategy. Choose a repayment plan that allows you to comfortably afford your monthly payments without increasing your loan’s lifetime expenses.
To that point, it’s important to be open and transparent with your loan servicer if you are struggling to make payments. By proactively contacting your servicer if you hit a financial snag, you’ll be able to stay current on your payments while taking advantage of any forbearance, deferment, or repayment plan change options available to you.
Finally, if you can afford to send additional money on top of your monthly payments, it’s a good idea to take the long view of how that will benefit your loan payoff journey. Rather than feeling like you only have to pay the minimum amount, planning for the long term can help you make the decisions that will make your future finances better.
Refinancing your student loans could be an option for you if you’re looking for a lower monthly payment or lower interest rates. Typically, you’ll need a minimum score of 660 to apply for most lenders, but if you have bad credit, you can always apply with a cosigner.
To get started on refinancing your student loans, visit Credible and compare prequalified rates from multiple lenders.
The student loan consolidation companies in the table below are Credible’s approved partner lenders. Because they compete for your business through Credible, you can request rates from all of them by filling out a single form. Then, you can compare your available options side-by-side. Requesting rates is free, doesn’t affect your credit score, and your personal information is not shared with our partner lenders unless you see an option you like.
All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures
Emily Guy Birken is a Credible authority on student loans and personal finance. Her work has been featured by Forbes, Kiplinger’s, Huffington Post, MSN Money, and The Washington Post online.
Home » All » Student Loan Refinancing »
Compare Your Student Loans
👇 CARES Act Info 👇
Refinancing Guides
Additional Resources
Student Loan Refinancing
© 2023 Credible
Credible Operations, Inc. NMLS ID# 1681276 | NMLS Consumer Access | Licenses and Disclosures
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.