Do you have any tips for managing student loans?

Below are some tips that may help you stay on top of your loans:

Both the borrower and any co-signer are each responsible for the loan’s repayment. Even if you are a co-signer (taking out the loan with another person) you are also on the hook for the loan. Make sure your fellow borrower knows their responsibilities, as well.

If you don’t repay your loan on time or according to the terms in your promissory note, you might go into default, which has serious consequences and will affect your credit rating.

You must make payments on your loan even if you don’t receive a bill or repayment notice. Billing statements (or coupon books) are sent to you as a convenience, but you’re obligated to make payments even if you don’t receive any reminders.

If you apply for a deferment or forbearance, you must continue to make payments until you’re notified the request has been granted. If you don’t, you might end up in default.

Know who your loan “servicer” is. The servicer is the entity that will handle billing and payments, and it is often a different organization from the lender who made the loan. You should keep an eye out for communication from the servicer.

Remember to notify your loan servicer when: you graduate; withdraw from school; drop below half time status; change your name, address, or Social Security Number; or transfer to another school.

Notes: Always remember to fully exhaust your government student loan options first, before you pursue private student loans.