Repaying student loans can feel overwhelming after graduation. Fortunately, there are proven strategies and reliable government and university resources to help you manage and reduce your debt. We have some essential steps and tips to make repayment more affordable as well as useful resources to learn more.
Key Steps & Strategies
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Know
Exactly What You Owe
It’s vital to understand the types of loans you have, the interest rates, your loan servicer, and the current balance. Use your Federal Student Aid account to view all federal loan details. -
Choose
the Right Repayment Plan
Federal student loans offer several repayment plan options. Standard, extended, graduated, and income-driven plans— like pay as you earn or income-based— each have different monthly payment/cost trade-offs. Selecting an income-driven plan can lower monthly payments based on your income. -
Budget
and Pay More When Possible
Paying more than the minimum payment or making extra payments toward the principal can reduce the total interest you pay. Try to do this whenever possible. Consider auto payments to help you keep up with your payments and avoid penalties. Plus, many federal loans offer a discount if you set up auto-pay! -
Use
Tools and Simulators
The Department of Education provides a loan simulator tool to compare repayment plans. This helps you see how much you'll pay over time under different plans. -
Explore
Forgiveness, Discharge, and Consolidation
Public Service Loan Forgiveness. This includes working full-time at U.S., state, or local government, or for qualifying not-for-profit organizations. To be considered, simply fill out a PSLF form using the PSLF help tool.
In certain circumstances, like school closure, false certification, or if you have private loans, there may be other discharge or forgiveness options available. Visit the Federal Student Aid page for information on student loan forgiveness options.
Consolidation is another option, and can reduce administrative burden by combining multiple federal loans into one payment. However, you’ll need to understand what benefits or protections you might lose by doing so.
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Payments
Options
If you can’t afford your payments right now, don’t ignore the problem. Contact your loan service provider immediately. Options may include switching repayment plans, temporary deferment or forbearance, or applying for hardship programs. Being proactive helps avoid default, garnishment, or damage to credit.
Repaying student loans doesn’t have to be brutal. By understanding your loans, selecting a suitable repayment plan, making extra payments when possible, and leveraging forgiveness/discharge options, you can make steady progress toward loan repayment and reduce long-term costs. Using all of the available government and university resources will help you navigate repayment with less stress.
Lauren Weatherford, WVU Extension Agent — Fayette and Nicholas Counties
Financial Literacy Education Team