As you finish your educational program, you should start thinking about your first student loan payments. Plan ahead and consider your options in order to lessen the sting of loan repayment.

Plan to Repay Your Loans
Repaying your student loans is just as important as paying your mortgage or car loan. Unlike those loans, however, student loans have a little more initial flexibility. After you graduate or leave school, your loan repayment grace period allows you some time to find work--typically about six months--before your loan repayment responsibilities begin. Though six months is the usual grace period, different types of student loans come with different grace periods, interest rates, and repayment options.

Be sure you understand the repayment information for each of your student loans. Your school may have exit interviews or personalized counseling sessions where your loan repayment, cancellation, and deferment options are explained in detail. At these meetings, you can ask about details like where to send your payments for each loan. If you have a loan through a private lender, schedule a time to talk to them about your repayment options.

Deferring Your Loans
If it's not possible for you to immediately begin repaying your loans, you may be eligible to apply for a deferment. You can receive a deferment on some Federal loans if you enter active service in the military, continue your schooling with another degree or certificate program, or in some cases if you are unable to find full-time employment. Deferments aren't automatically approved, and you should contact your loan provider for specific information as soon as you realize you may not be able to repay your loans on time.

Canceling Your Loans
You may be eligible for cancellation of all or part of some Federal loans if you teach in schools in certain low-income areas or teach certain subjects in schools that have identified a need. In most cases, you cannot cancel your loans through bankruptcy but contact your lender for specific details or if you have questions.

The typical repayment time for student loans is ten to fifteen years, but your lender may allow you to take more time to repay them. Talk to your financial aid office or private lender for more details.