Personal Finance

Three Steps to Take at the End of your Student Loan Grace Period

Grace period is the time given by the government and other agencies to the student before any loan repayment needs to be done. This period was given purposely to help all students to settle down on and being financially stable before they make another commitment. During this grace period, students need to plan well on how they can tackle the debt as it will help the student to still be financially stable when they start paying the debt.

Writing for, Robert Farrington offers three steps that the student can take at the end of student loan grace period.


This is the most important thing to do, get organize and identify all the loans taken during the study years either Federal student loans or private loan. This is to make sure that student know how much needs to be paid each month and to whom. 

For the Federal loan, a student can check via National Student Loan Data System. The database contains all the required information on who to contact, how much loan was taken and how much monthly commitment that they need to pay each month.

For a private loan, there are two ways to track them either by using the credit card information or through the Consumer Financial Protection Bureau. For credit card information, students can use the free database to track their private lender or they can use the bureau where they will assist students in their debt repayment and information.

Create a loan payment strategy

The best way to do this is to get in touch with a loan servicer as suggested by the U.S Department of Education. The loan servicer will let students know their options and how they can tackle the debt better. Some loan even provides a deferment service for a student in financial problem or if the student is planning further study.

Each loan taken comes with either 10 or 25 years repayment plan. By using the NSLDS website, students can estimate roughly on their monthly commitment.

By combining this information with their monthly expenditure, students can understand how much they can afford to pay each month and what is the best way to pay their debt.

Learn about all options available

The Federal loan provide different means for students to pay off their debt such as through income-based repayment plan, Income-contingent repayment and Pay As you Earn plan, according to U.S News.

By understanding all options available, students can choose the best and affordable way to get out of debt fast.

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