Student Loan and Repayments Tips

Here are some tips that could help you and your student loan repayments.student loans

The Truth About Prepaying On Your Loans

It is not always clear if prepaying on your student loan is penalty free. Usually penalty free prepayment is listed as a benefit by student loan servicers, but this is true for all education loans.

If you have been thinking about prepaying on your loan, but have been worried about potential fees then you should contact your student loan servicer and let them know you are considering prepaying. Ensure they understand that you want the payments to go towards the principle.


A student loan can be consolidated and can either be federal or private. A federal consolidation will combine all the federal loan servicers you have into one new federal servicer of your choice. A private consolidation combines your federal and private loans into a new loan that is based on your financial situation.

Student Loans and Your Credit Score

Your credit score will improve with consistent payments that are on time. The payments that you make will contribute to your payment history, which constitutes 35% of your credit score.

Student loans also contribute to the length of your credit history and add to types of credit.

If you want to build your credit score, student loans can actually help you.

Any payments that are over 30 days late are reported to the credit bureaus. With federal loans, default occurs after 270 days of no payment.

Deferment and Forbearance

These are useful if you are experiencing financial hardships.

Deferment is usually issued for scholarships, retuning to school and for economic reasons.

Forbearance is easier to file and your subsidized loan will accrue interest. This is not the case for federal loans.

It can be difficult to pay student loans, but there are tools to help you so that your debt is easier to manage and so that you can make repayments.