You Graduated College, Now What?

Congratulations, you graduated from college! Once the excitement wears down, you might find yourself asking, “What now?” Continue reading to learn more about student loan repayment and a Banzai Coaching course on life after college.

Student Loan Repayment

Looking at your student loan repayment options might be overwhelming, but we are here to help guide you through the process.

Grace Period

Most student loans offer a grace period before you have to begin paying on your loans. This time period can last anywhere from 6 to 9 months after graduation. This is to give you time to get settled, find a job, and create a repayment plan.

While you might receive a grace period, that doesn’t mean that interest is not accruing on your loans. Check to make sure that your loans aren’t gaining interest during this time period.

If your loans are gaining interest, it might be smart to start paying off your loans before your repayment plan starts. This way, you can get ahead of the interest payments and not fall too far behind.

Repayment Plans

Many student loan servicers will assign you a repayment plan based on your current financial situation. If your situation changes, you can change your plan at any time for free.

When looking at your list of repayment plan options, you might want to choose the lowest monthly payment or the quickest payoff option. This is not recommended as some plans offer special deals such as loan forgiveness after a set amount of payments or flexible payments based on a percentage of your income.

Use this free Student Loan Payoff Calculator to help determine what your monthly payment, interest savings, interest to be paid, and payoff date will be.

For more details on different types of repayment plans, visit Repayment Plans

What If I Can’t Pay?

Sometimes, there are unexpected life events that could hinder your ability to pay your student loans each month. Whether you’re having trouble finding a job or if you have a medical emergency, there are options for you.

Deferment

Deferment can be used in situations where you may not be able to make payments for a period of time. These situations may include medical complications, a qualified economic hardship, enrollment in a graduate program, or active military service. Deferment only temporarily postpones loan repayment under certain conditions, so you'll want to confirm if your situation falls under this category.

Forbearance

Forbearance can temporarily suspend or reduce your loan payments. Sometimes forbearance is mandatory. This can happen in situations such as National Guard Duty or participation in a medical or dental residency. Your loan servicer can also grant you a general forbearance if you’re experiencing financial hardships that may not fall under the deferment category.

Note: Even if you qualify for deferment or forbearance, interest will most likely continue to accrue. For that reason, it is best to try a different repayment plan first before pausing any payments.

Consolidation

If you have multiple federal student loans, you may have the option to consolidate your loans into one fixed-rate loan. This process is free and can lower your monthly payments, or it could make it possible for different repayment plans/programs.

There are pros and cons to consolidating your loans into one, so it's always good to consult with a financial advisor before making any decisions.

Financial Literacy

Check out this free financial literacy resource from Banzai. It will help guide you through the cost of college, your alternative options, as well as how to find a career after graduation.