May is officially graduation season for college students, marking that
pivotal transition from academia to adulthood. Navigating what’s next
often includes finding a job, deciding where to live, and preparing for
other responsibilities like paying back student loans.
Sallie Mae has tools and resources to help recent graduates get on the
right track. The company’s “Manage
your student loans” is a one-stop source of straightforward,
comprehensive information. It features practical tools, including a
monthly budget worksheet and a loan payment estimator, as well as
easy-to-understand explanations of complex subjects, like how interest
accrues, how payments are allocated to principal and interest, and how
to build a strong credit history.
Whether student loans are federal or private, Sallie Mae recommends the
following tips to help recent grads manage their payments:
Get organized. Students who borrowed to pay for college are given
a six-month grace period after graduation when no payments are required.
This is the ideal time to get prepared. Start by understanding what you
owe — whether loans are federal or private — and how much you owe,
including interest rates and any accrued interest. Think about other
expenses, too. Using Sallie Mae’s budget
worksheet can help you get organized.
Check your inbox. Open any mail you receive from your lender or
student loan servicer and read it carefully. Update your contact
information when you leave school — including your e-mail address. If
you run into trouble, don’t ignore it. Touch base with your cosigner if
you have one or contact your lender or servicer.
Make payments automatic. Sign up for automatic payments, and
you’ll never have to worry about missing a payment, you’ll avoid late
fees, and you might qualify for a discount on your interest rate. Sallie
Mae customers may be eligible to receive a 0.25
percent interest rate reduction when they pay on-time via
auto-debit. Paying on time also helps establish and build a favorable
credit history, and that can make a big difference when you apply for a
car loan, credit card, lease, mortgage, or even a job.
Consider paying a little extra. If you can, make more than
the minimum payment each month. You’ll pay off your loan faster, and
you’ll pay less interest. Sallie Mae’s accrued
interest calculator can estimate how much you might save.
Use Sallie Mae Mobile App to make payments. If you are a
Sallie Mae customer, you now have the ability to make and manage
payments anytime, anywhere, including from an Apple Watch or by using
Siri, and the App is available for iPhone and Android.
To help with the transition to repayment, Sallie Mae also offers a Graduated
Repayment Period, which allows graduates with eligible Sallie Mae
loans in good standing to make 12 months of interest-only payments
before they transition into making full principal and interest payments.
Sallie Mae is the first private student lender to offer a Graduated
Repayment Period option.
“Research
tells us that young adults are hungry for more information about how
best to manage their finances, and for many, paying back student loans
is one of their first experiences in doing just that, “ said Martha
Holler, senior vice president, Sallie Mae. “Of course, it’s critical to
start out on the right foot, and that means getting prepared. Doing a
little bit of homework in advance will set students up for success in
the long run.”
For more information, visit SallieMae.com.
Sallie Mae (Nasdaq: SLM) believes education and life-long
learning, in all forms, help people achieve great things. As the leader
in private student lending, we provide financing and know-how to support
access to college and offer products and resources to help customers
make new goals and experiences, beyond college, happen. Learn more at
SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its
subsidiaries are not sponsored by or agencies of the United States of
America.
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