Student Loan Success Strategies - Prepare for Repayment

Before the grace period ends, establish the following strategy:

A. Review the repayment schedule from the Lender to see what your monthly bill will be and when it's due. You may have options for different payment plans so consult a smart financial person you trust to help you select the right one for you.

B. Practice setting aside the amount you will have to pay on your loans each month and discipline yourself not to spend this money so you can get a feel for what your income will be when payments begin.

C. Make any changes now to your spending and/or savings to ensure you will be able to pay your monthly expenses, meet other financial obligations, and have money to enjoy life. Ensure your expenses will not exceed your take home pay.

Info from "Success Strategies & Repayment Realities: A Guide to Repaying Student Loans," published by Access Group, Inc.

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Book notes from: The Great Depression: A Diary, by Benjamin Roth (2009)

Roth 's book c ompares the economic conditions in 1873 to 1929-1934: The 1873 panic was preceded by Civil War- then 8 or 9 years of hectic prosperity, speculation, rising prices, corruption in government- and then sudden panic, bank closings, etc. Organized movements to stop foreclosures. Wild schemes to inflate currency. "The panic of 1873 lasted 5-6 years," and the Great Depression started in Fall 1929 and lasted through the early to mid 1930's, in which 4 years were hard until they started seeing true signs of recovery.

Student Loan Success Strategies - Starting Grace Period

Grace Period Upon graduation, Lenders will usually give you a set amount of time before you must begin making payments. This grace period starts when you: a) Graduate, b) Leave School, c) Your class enrollment drops below half-time, whichever comes first. Grace Period by loan Type (as of January 2021): Federal Direct subsidized and unsubsidized: 6 months. Federal Stafford subsidized and unsubsidized: 6 months. Federal Direct PLUS for graduate students: 6 months. Federal Direct PLUS for parents: 6 months, Federal Perkins: 9 months. Private loans: Varies by lender(s). Ask your lender(s) if you’re not sure. GET THE ADVANTAGE: Use this time to 1) Get a job, 2) Know your take home pay, and 3) Begin tracking your monthly expenses. Info from "Success Strategies & Repayment Realities: A Guide to Repaying Student Loans," published by Access Group, Inc.

Student Loan Success Strategies - Who is involved

Participants in your education loan repayment include: A. Lender - (Who loaned you the money) Bank, savings and loan, credit union or organizations. B. Borrower/Student/Debtor, etc. - You. C. Holder - (Who owns it now) Current owner of the loan and has legal title. You will likely change who you make payments to. D. Guarantor/Co-Signer - (Who will pay if you can't pay or stop paying) - Parent, other adult, state agency or private, nonprofit organization who promises to pay if you either miss or stop making payments, die, go on disability, or file bankruptcy. Note: Servicers may also participate, which are companies that specialize in handling billing, collections, and deferments for loans. Info from "Success Strategies & Repayment Realities: A Guide to Repaying Student Loans," published by Access Group, Inc.

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