June is one of the busiest months for student loan companies. The reason for this is all the borrower’s who graduated after the fall semester are now coming due after their 6 month grace period. While their questions can vary wildly, here are some of the most common questions we deal with in terms of new borrowers:
I am going back to school in the fall, do I have to make payments now?
In short, yes. After your grace period ends, you must enter repayment if you don’t pause your loans with a deferment or forbearance. Once you start school again and your account gets updated, you can have an In-School Deferment placed, but if there is a lap between those time periods, you are responsible for your payments during this period.
How much is my payment and when does it start?
Typically a month before your account enters repayment, your servicer will send you a summary of what your payment is and when your due dates will be. Then after that you will be billed for your first payment. Until then, you may just rely on repayment estimation calculators.
What if I can’t afford this payment?
There are definitely options available to you. There are different repayment plans that can lower your payment or you may qualify for a deferment or forbearance. But as I stated in last week’s post, do check all your options since often times remaining in repayment is better for you than placing your payments on hold.
These are the three most common questions that occur. If you have additional questions please feel free to send them my way or talk to your servicer. Remember the worst question is the one that is not asked!