After College: Know What — and to Whom — You Owe Your Student Loans

If you graduated last spring after borrowing federal student loans, you’ll need to begin repaying them soon. So now’s the time to confirm what you owe and to whom you’ll make your payments.

Fortunately, the government has two easy-to-use websites through which you can IMG_0137find such information in a matter of seconds. One is the Federal Student Loan Repayment Estimator. It’ll identify your outstanding loan balances and project your monthly and total repayment amounts under each repayment plan for which you’re eligible. It can also compare these amounts if you consolidate your federal student loan debts.

This information is the key to selecting the right repayment plan before you begin making monthly payments. And if consolidation is right for you, now is the time to look into a Federal Direct Consolidation Loan.

IMG_0138Where can you identify who you’ll repay and/or to whom you should apply for a consolidation loan? That’s the National Direct Student Loan System (NSLDS). You can use NSLDS to identify the loan servicer — and its mailing address, phone number, and website address — for each of your Federal Direct Loans and, if you have them, Federal Perkins Loans.i

Both the estimator and NSLDS are secure federal websites so, to access and use them, you’ll need your Federal Student Aid (FSA) ID.

About those federal student loan servicers . . .

They work for your lenders — the government for your Federal Direct Loans and the colleges and universities that awarded your Federal Perkins Loans. Each lender will places all loans you owe it with a single servicer.

If you owe on Federal Direct and Perkins Loans, you may have a servicer for both and you should consider consolidating those debts.

Finally, your servicer doesn’t just collect your debt. It can also to provide services to help you manage that debt — advice about resolving problems; explanations and information on the practices, rules, and systems that apply to your loans; and responding to your requests on consolidation loans, repayment plans, and payment postponements. Make sure your servicer always knows where to contact you in case it needs to reach out to you about such matters.

Knowledge is power, and knowledge about what and who you owe give you a powerful edge in managing your student loan debts. Use that edge — you’ll benefit from it!

You’re always welcome to contact College Affordability Solutions at (512) 417-7660 or collegeafford@gmail.com for no-charge consultations on repaying your student loans.

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