Are you graduating, withdrawing from school, or dropping below half-time enrollment? If so, and you have any federal student loans, there are several steps you need to take to both manage the status of your federal student loans and begin planning for the future.
Important Things to be Aware of:
- Interest — Interest is the price you pay to borrow money. How much will it cost you? Calculating interest depends on a few factors, your interest rate, your loan term, and your loan amount. Higher rates and longer terms mean you pay more for the same amount of money. Try your best to avoid interest whenever you can!
- $10,000 at 6.8% will cost you $13,810 over 10 years with a $115 monthly payment. Paying just $30 more a month will save you over $1,000 in interest.
- Extending your loan repayment will typically reduce the monthly payments, which may be needed. It will also increase the amount of interest you are paying over the life of the loan. Please be aware of the impact of this. Also be aware of your options to update your repayment plan, as necessary and allowable.
- Loan Default — If you have debt from either student loans or credit cards, it is extremely important that you manage it proactively. The average federal and private student loan debt for students in Washington is $33,342. There are a number of repayment options for students with federal student loans. If you are having trouble making any of your payments, contact your loan providers to find out your different repayment options. You want to avoid defaulting on a student loan, as it will have long lasting impacts on you. If you need assistance with repayment options, please contact our office.