As many as 30% of adults attend college, with 4-in-10 taking on loans to pay for at least part of their education, according to a Federal Reserve report. Now with a combined $1.78 trillion in outstanding federal and private student debt, just 21% of borrowers have actually repaid their balances, government figures show.
Gather information on your loan amount, interest rate and repayment options Time is of the essence when it comes to paying off this debt. For federal student loans, servicers wait a minimum of 90 days before reporting late payments. For private student loans, they can report late payments within as few as 30 days, according to a NerdWallet report.
For private loans, you’ll likely need to access your servicer’s website of app. If you don’t know where to find this information, you can call them. If that doesn’t work, consult with your school’s financial aid office or look into your credit report to determine how much you’ve borrowed and the current loan servicer.
If you’re not sure which one you have or if you would like to change your repayment strategy, contact your loan servicer and ask for more information. They should be able to help find the best option for your circumstances. Next you’ll want to check your credit score and ensure you qualify for the promoted interest rates from the lender you’re interested in refinancing with .
“Always explore if there are better opportunities to do a different payment plan, refinance the loans, or pay extra monthly to accelerate the payoff date,” Gilberti says. “Make sure you are making smart decisions around your payments, ensuring your dollars are being used as efficiently as they can.”