Calling all May 2011 graduates! November has arrived, and with it comes your first bill to repay those federal student loans.
One option you might consider as you get started on your repayment journey is loan consolidation. Consolidating allows you to combine your loans into one easy monthly payment instead of many. Phew! This option allows for a lower monthly payment, but keep in mind that this also means the repayment period will be extended and you may end up paying more interest.
If you are struggling to pay back your loan and are at risk for defaulting, get help! Remember that your lenders are here to help you.
We realize that the economy is tough and the unexpected occurs. Jobs evaporate and emergencies happen. If you find yourself financially unstable and are unable to make payments on your loan, consider applying for deferment or forbearance. If you qualify for a deferment, you can temporarily postpone loan payments. Interest will still accrue on unsubsidized loans during the postponement period. A forbearance allows you to temporarily stop making loan payments or make smaller payments for a short period of time. Keep in mind that this will extend the repayment period for your loans. Remember, if you default on your student loans you will lose eligibility for a deferment or forbearance.
Good luck!