Tips for Repaying Your Student Loans

Chances are if you have any type of students loans you are in it for the long haul. The good news is, you can do it. Student loans were designed with flexibility in mind. There is a way for you to repay your loans, and it won't be painful.

Whenever the Office of Financial Aid asked you to sign something, it was for a reason. Most often documents you signed relating to your loans were Promissory Notes. You should have kept copies of these notes in a file. These are the best places to start. Included with your Promissory Note is a copy of borrowers' rights and repayment responsibilities of every loan you have ever taken while a student at St. Olaf. Start by reading these! They should also help you make a tally of every dollar that you owe. It is important to establish how much you owe early on. Learn more about the terms of your loans on the loan section of our website.

Remember, not all of your loans are going to be repaid to the same place. Know how much you owe to each separate holder. For instance, if you have a Federal Perkins Loan, your payment will be made to St. Olaf College, but a Federal Stafford Loan will most likely be paid back to Great Lakes Higher Education. Be knowledgeable about your loans. If you have a question, contact the Office of Financial Aid.

• Entering Repayment

There are four basic rules to successfully repaying your student loans. While all cases are different, following these steps can ease the responsibility of repaying student loans.

• Establish a Budget

The most effective way to ensure you are going to have enough cash to cover all your bills is to establish a monthly budget. The easiest way to determine what you are going to be able to spend each month is a budget calculator. (There are numerous free budget calculators on the web.) The first step towards developing an accurate budget is determining your take home pay after taxes. With this number established, use the calculator to subtract your expenditures such as housing, utilities, car bills, gas, medical expenses, groceries, credit card and other bills, student loans, entertainment and miscellaneous expenses. With this completed, you have a monthly budget to follow.

• Know Your Rights and Responsibilities

You are responsible for:

• Repaying the loan as agreed (including any accrued interest, and the guarantee and origination fees deducted from the loan at disbursement) even if you do not complete your education, are unable to find employment, or are dissatisfied with the education you received.
• Repaying the loan even if a bill is not sent; failure to receive a bill or coupon booklet does not relieve you of the obligation to repay your loans on schedule.
• Completing entrance counseling prior to receiving the first disbursement and exit counseling prior to leaving school.
• Keep in Contact with your Lender or Servicer

You are responsible for notifying your lender immediately in the event of:

• a change in name, address, phone number, or social security number,
• a drop below half-time student status
• graduation, withdrawal, or transfer to another school,
• inability to meet the repayment terms agreed upon,
• the need to apply for a deferment or forbearance.

• Know Your Repayment Schedule

Remember it is your responsibility to make your payments on time, even if your servicer does not send you a coupon book or bill! If you do not follow your payment schedule, you could be considered in default.