Early Planning for Repayment
Why wait until graduation to begin thinking about loan repayment? Planning ahead can help you reduce your debt levels, make smart borrowing decisions during school, and help you manage your loans effectively. Get started now!
- Determine your next steps
- When will you graduate? Will you continue your education? Enter a residency or internship? Relocation costs?
- Estimate your budget
- What will your income be? What expenses will you face?
- Know what you owe
- Keep track of your borrowing each year
- Keep this total in mind when new loans are offered or anytime you have a credit balance on your student account. Do you truly need the funds or can you reduce your borrowing?
- Federal loans
- Visit NSLDS (http://www.nslds.ed.gov) . Make note of loan amounts & servicer contacts
- Perkins & Institutional
- Visit ECSI borrower site (http://borrower.ecsi.net). Will be repaid to Brown University Loan Office
- Estimate your total monthly payment
- Evaluate Federal Loan repayment plans
- Use online calculators to estimate your monthly payment amounts http://studentaid.ed.gov/PORTALSWebApp/students/english/OtherFormsOfRepay.jsp
- Factor in payments for Perkins or Institutional loans (minimum $25 to $50, but may be higher based on your loan amounts)
- Consider making payment during school
- Most loans do not accrue interest while you are in school (except Unsubsidized Stafford)
- Payments will go directly to reduce the principal balance & this saves you a lot of money in interest
- Evaluate postponement options
- Learn about deferment and forbearance – the options differ based on loan type
- Can you afford to repay all loans at once?
- Will you need to postpone? Some or all loans?
- Will you be in a situation that is covered by deferment/forbearance?
- Get to know your loan servicers
- Watch for letters or emails from each of your servicers
- Check out their websites & know their contact information
- Always give them your current contact information – if they can’t reach, you will miss important information about your loans.