Even if you're just beginning your undergraduate degree program, it's not too early to start thinking about eventually repaying your student loans. Educating yourself about loan repayment, deferment, forbearance, and cancellation options can save you financial distress down the line.

Repaying Your Loans
As you begin your education, repaying your loans might seem like a long way off. Educating yourself now is a good idea, especially because it could affect your decisions about how much to borrow while you're in school. Repayment is important and can affect your credit rating. Borrowing only what you truly need will make your post-college life much less stressful.

After you graduate or otherwise leave school, you have a grace period before you have to begin repaying your student loans. This gives you a little time to find work before starting your monthly payments. Different student loans come with different grace periods: six months for Stafford Loans and nine months for Perkins Loans.

Loan Deferment and Forbearance
If, after your grace period ends, you are not able to begin repaying your loans, you may be eligible for a deferment, which temporarily postpones payment of your loan principle. Deferments are available for economic hardship, unemployment, returning to school at least half time, teaching in a designated shortage area, service in the military or in certain areas of public service, as well as other deferments. You can get more information about deferments from your lender.

In addition to deferring your loan, you might be able to postpone payments of your principle based on temporary financial hardship by applying for forbearance. Keep in mind that for deferment and forbearance, interest continues to accrue. Depending on the type of your loan, the government may or may not pay the interest during the deferment. If they do not, the interest is capitalized (added to your loan principle).

Loan Cancellation
You can receive cancellation of some or all of your educational loans through the Teacher Loan Forgiveness Program if you teach in certain low-income schools or teaching certain subjects. You may also be eligible for partial cancellation for military service in an area of hostilities. In most cases, educational loans cannot be discharaged through bankruptcy. Contact your lender for specific information.