Although loans are an excellent way to pay for college and to build a credit history, they are also an important financial responsibility that must be repaid. Borrow only what you need, don't overburden yourself with excess debt.

Know your lender

Any time you borrow for your education, make sure you know your lender's name, phone number and address. Be sure to keep all loan information and documentation. Be sure the keep them informed of any changes. (i.e. name, address, phone number changes.)

How long will it last?

Your lender must give you up to ten years to repay your student loan unless other arrangements are made. The minimum monthly payment amount is $50.

>Having trouble making payments?

If you experience problems in making your monthly payments,contact your lender. You may be surprised at the deferment and forbearance options available to assist you in repaying your loan. Also, Loan Consolidation can help lower your payments (see below).

BE AWARE: Delinquent and Defaulted loans are required by law to be reported on your credit history.

Loan Consolidation

Loan Consolidation can be used to combine your education loans into a single account or to refinance your loans with a lower monthly payment. Repayment terms can be extended up to 30 years, depending on how much you owe. Longer repayment terms mean lower payments but it also means you will pay a greater amount of interest over the life of the loan.

Interest Calculations - it's simple

Federal Stafford and Parent PLUS Loans are "simple interest" loans. Interest on your loan will accrue daily. Extra amounts paid above your monthly payment amount will lower the interest you pay over the life of the loan and can also shorten the repayment term. Interest accrues from payment to payment. If your payment is received late or days later than the previous month's payment, more of your payment will be applied towards accrued interest than principal. Try to mail your payments close to the same day each month and pay extra whenever possible.

Loans can be sold

Your loan can be sold by your original lender to another lender. If this does happen, you will be notified