As mentioned earlier, loans must be repaid! After you graduate, leave school, or drop below half-time enrollment, you have six months before you must begin repaying your loans. The six-month period is called the “grace period.” Once the grace period has ended, the repayment period begins.Your first payment will be due within 60 days after your repayment period begins. It is important to begin repayment when you receive a bill from your lender. There are consequences for not making your monthly payment.
Keep track of what you owe and when repayment is due. Be aware that many students spend 10 to 20 years repaying college loans! For example, if you borrow $23,000 in a 6.8 percent interest rate Stafford Loan, you'll have to pay $265 every month for 120 months (10 years). By the time you pay back the $23,000 plus interest, you will have paid $31,800! Private loans may cost even more.