Tips to repay student loans quickly, affordably as possible

Author:  Edited from StatePoint
College students who borrow to pay for school typically don’t have to start repaying their student loans until six months after leaving school.

student on laptopBut when it does come time to start making loan payments, some may find themself stressing out about the additional monthly expense.

“Properly preparing for this transition can help students successfully manage their payments now and in the future,” says Martha Holler, senior vice president of Sallie Mae.

To help, Holler is offering the following insights:

  • Know who and how much you owe - Keep track of lender and servicer contact information and other important details on a spreadsheet. Include the type of student loan, name of the servicer, the servicer’s phone number, interest rate and type and the ending date of your separation or grace period.
  • Tap technology - Set up automatic payments so you’ll never have to worry about missing a payment. You’ll avoid late fees and you might qualify for a discount on your interest rate.

For example, Sallie Mae customers may be eligible to receive a 0.25 percent interest rate reduction when they pay on time via auto-debit. In addition, with the mobile app for Android and Apple, customers can make and manage payments anytime.

  • Save money - Make more than the minimum payment each month to pay off your loan faster and pay less interest overall.
  • Think long term - Paying on time consistently can help you establish and build a favorable credit history. This can make a big difference when you apply for a car loan, credit card, lease, mortgage, or even a job.
  • Be responsible - Open any mail you receive from your servicer or lender and read it carefully.

Update your contact information when it changes, such as when you leave school and “.edu” is no longer part of your e-mail address. If you run into trouble, contact your lender or servicer, your co-signer if you have one and look for solutions.

For more tips and tools, visit salliemae.com and check out Sallie Mae’s “Manage Your Student Loans”.

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