Student Loan Repayment

Student Loan Repayment

Student loans can be one of the scariest parts of graduating from college. The first step is to plan how you will repay your loans. Start by looking at how much you owe, the interest rates on each loan, and the repayment terms. Make sure you choose a payment plan you can manage and always make your payments on time. If you can afford to, paying a little extra on the principle of your loans can help you pay off your student debt faster.

You can find your loan details including how much you owe, what your interest rates are, who your loan servicer is, and more by creating an account and logging in at StudentAid.gov.

There are many options available for repaying your student loans from income-based plans to paying a monthly fixed amount. You must contact your loan service provider to pick your repayment plan. If you do not pick your repayment plan, you will automatically be placed on the Standard Repayment Plan which is a 10-year fixed repayment plan that may result in a higher monthly payment. Learn more about Repaying Student Loans.

Maine residents also have an opportunity to earn the Student Loan Repayment Tax Credit. This program is open to Maine residents who are making student loan payments, graduated from an accredited college or university after 2007, and live and work in Maine. The Student Loan Repayment Tax Credit is up to $2,500 annually. Learn more about how you could benefit from the Student Loan Repayment Tax Credit.

The Finance Authority of Maine (FAME) has a great video covering the basics of student loans and repayment options.

Disclaimer: Any reference made in this blog to a specific product, process, or service does not constitute or imply an endorsement by Connected Credit Union of the product, process, or service, or its producer or provider.