Top 7 Student Loan Tips for Recent Graduate

Many students see paying back their student loans as one of the downsides of graduating.

Borrowing from private lenders can be stressful. Federal student loans are usually the safer choice, with more protections and more flexible repayment options.

The best part of being a recent graduate is that you finally graduated! The worst part is that your student loans now need to be paid back.

If you're about to graduate, keep these seven tips in mind.

1. Know your grace period

Your grace period is how long you can wait after leaving school before your first payment is due. It varies by loan type.

• Federal Direct subsidized and unsubsidized loans have a six-month grace period.
• Older Perkins loans had a nine-month grace period. The Perkins program ended in 2017, so no new Perkins loans are made.
• Federal PLUS loans work differently, so check their terms on studentaid.gov.
• Private loans all vary, which is why you need to check with your lender.

2. Stay in touch

Keep your loan servicer up to date with your contact details. If you move after graduation, give them your new address, phone number and email.

Read every letter and email about your loans so you know about any changes. Communication is key.

If your servicer calls, talk to them. Ignoring them won't make the loan go away, and it can lead to default. If you're having trouble paying, your servicer can walk you through your options.

3. Pick the right repayment plan

As a recent graduate, you have choices about how to repay your loan, so choose wisely. Be realistic and stick with it. Consistency is what gets your loans paid off.

Federal repayment plans changed on July 1, 2026. If you took out a federal loan on or after that date, you can choose between:

• The Tiered Standard plan, with fixed payments over 10 to 25 years depending on your balance.
• The Repayment Assistance Plan (RAP), where your payment is based on your income.

If all your federal loans were taken out before July 1, 2026, you may also be able to use the standard 10-year plan, graduated or extended repayment, or Income-Based Repayment.

If your payment is too high, contact your servicer and ask about a plan that fits your income.

Watch out for scams. Be wary of anyone who promises special forgiveness programs, such as so-called "Obama loan forgiveness", or charges a fee to sign you up for a federal plan. You can apply for every federal repayment plan for free at studentaid.gov.

4. Consider military service

Serving in the military can help with your student loans:

• The Department of Defense can repay federal student loans as an enlistment benefit. Each branch of the Army, Navy, Air Force, Marines and Coast Guard sets its own rules.
• Interest doesn't build up on Direct Loans first paid out on or after October 1, 2008 while you serve in an area of hostilities, for up to 60 months.
• Loans you took out before active duty are capped at 6% interest while you serve.
• Military service counts toward Public Service Loan Forgiveness.

Full-time work for the government or a qualifying nonprofit can also lead to loan forgiveness through Public Service Loan Forgiveness.

5. Don't fall behind

Ignoring your student loans can have serious consequences. A federal loan goes into default after 270 days of missed payments, about nine months.

Default can:

• Seriously damage your credit.
• Make your entire balance due at once.
• Lead to your tax refunds being withheld and your wages being garnished.

That's a tough start for a recent graduate who's just beginning a career.

6. Don't panic

If you're having trouble making payments, there's help. If you lose your job or face health problems, you may qualify to pause your payments temporarily through deferment or forbearance.

Interest may still build up during a pause, but you can make interest-only payments to keep your balance from growing.

You can also switch to an income-driven plan. Under Income-Based Repayment, your payment can be as low as $0. Under RAP, the minimum is $10 a month.

7. Know what loans you have

Keep a record of each loan: who your servicer is, how much you owe and your repayment status.

Log in to your account dashboard at studentaid.gov to see all your federal loans in one place. If a loan isn't listed there, it's probably a private loan. Your school's financial aid office can help you track down the paperwork.

For help with federal student loans, call the Federal Student Aid Information Center at 1-800-433-3243.

Finally, when it's time to act, don't leave it until the last minute. Staying on top of your loans protects your credit and your peace of mind.