Educate yourself about the process. Complete Exit Loan Counseling online at here Remember that a hold will be placed on your academic record until this requirement has been satisfied.

Know where your loans are. Go online to here to view all of your federal student loans and find out who is servicing each one.

Know when your first payment is due. Generally, the first payment is due approximately six months after you leave school. Making your payments on-time can help you build and maintain a good credit rating.

Calculate your estimated monthly payment. Use the repayment plan calculator available online at here to get an idea of what your monthly payments will be.

Pick the payment plan that works for you and your income level. You may have the option of arranging regular monthly payments or minimizing payments initially. For example, federal student loans offer income-driven repayment plans that set your payment at an amount intended to be affordable based on your income and family size. Before selecting a repayment plan, understand what the total loan cost will be. Many alternative payment plans reduce the monthly payment amount, but significantly increase the total cost of your loan—call your loan servicer to explore the best option for you.

Pay a little extra. By paying more than the minimum on your student loans every month, you can lower the amount of interest you pay over the life of the loan.

Lower your interest rate by signing up for automatic debit. Borrowers who make scheduled payments via automatic debit may qualify for a 0.25 percent interest rate reduction.

Consider Loan Consolidation. A Direct Consolidation Loan allows a borrower to consolidate multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments. Loan consolidation isn’t right for everyone. Be sure to do your research before you consider consolidation.

Use deferments or forbearances as a last resort. Postponing payments can cost you extra because unpaid interest on your loan will “capitalize” (add to the balance). Use these options only if absolutely necessary.

Stay in contact with your loan servicer.  Log on to your servicer’s website – sign up to manage your accounts online and receive loan information via email. Always open your student loan notices on a timely basis to ensure you stay informed about the status of your loans. If you move or change email addresses, be sure to update your information with ALL of your servicer’s.

Keep your loans in good standing. Failure to repay your student loans (default) has serious consequences.

  • Your credit rating will be severely damaged for a minimum of seven years which can affect your ability to obtain credit, auto insurance and even a job.
  • Your Federal tax returns may be withheld.
  • Your wages may be garnished.

Above all, if you are struggling to make your payments, ask for help. Seek out assistance from your loan servicer or get in touch with your local accredited non-profit credit counseling service. You may also contact Missouri Western’s Student Loan Repayment Coordinator for assistance.