Your Student Loan Repayment Checklist: What to Do Before Your First Payment

Start with your loan documents and contact information

Before you make your first payment, you need to know which loans you actually have and who holds them. Log into studentaid.gov and download your loan history — this shows every federal loan in your name, the loan type, the current balance, and who services it. Write down the servicer's name and phone number for each loan; this is the company that will collect your payments, not the Department of Education.

If you have private student loans, they will not appear on studentaid.gov. Check your email for statements from banks or lenders, or pull your credit report from annualcreditreport.com to see what private loans are listed. Private loans have different rules and different servicers, so you need to track them separately.

Create a simple spreadsheet or document with: loan type (federal or private), servicer name and phone number, current balance, interest rate, and the date repayment begins. This becomes your reference sheet for the next ten years.

Key Takeaways

• Download your complete loan list from studentaid.gov before repayment starts, because federal loans are serviced by different companies and you need each servicer's contact information.
• Federal loans have a six-month grace period after graduation or dropping below half-time enrollment, but interest accrues on unsubsidized loans during this time.
• You must choose a repayment plan for federal loans — the standard ten-year plan is automatic, but income-driven plans may lower your monthly payment if your income is low.
• Private loans do not have grace periods or income-driven plans, so contact your lender immediately to set up payments before interest penalties begin.
• Set up automatic payments through your servicer to avoid missed payments, which damage your credit and trigger collection fees.

Understand your grace period and when payments actually start

Federal loans come with a grace period — a window after you leave school when you do not have to make payments. For most federal loans, this is six months after graduation or when you drop below half-time enrollment. During this time, interest still accrues on unsubsidized loans (Unsubsidized Stafford, PLUS, and Grad PLUS loans), which means the amount you owe grows even though you are not paying. Interest does not accrue on subsidized loans during the grace period.

Private loans typically have no grace period. Payments may begin immediately or within 30 to 60 days of disbursement, depending on your lender's terms. Check your promissory note or contact your lender to confirm when your first payment is due.

The grace period is not automatic forgiveness — you still owe the money. If you do not make a payment when the grace period ends, your loan goes into default. Mark your calendar for the day your grace period ends so you are not caught off guard.

Choose a repayment plan for federal loans

Federal loans require you to pick a repayment plan. The Standard Repayment Plan is the default: ten-year term, fixed monthly payment, and the least interest paid overall. If you do not actively choose a plan, you are on the Standard plan.

If your monthly payment feels too high, you have four income-driven repayment plans: SAVE (Saving on a Valuable Education), PAYE (Pay As You Earn), REPAYE (Revised Pay As You Earn), and IBR (Income-Based Repayment). These plans calculate your payment as a percentage of your discretionary income — usually 5 to 20 percent depending on the plan — and can lower your monthly bill significantly if you earn less than $32,000 per year. Income-driven plans also offer loan forgiveness after 20 to 25 years of payments, though forgiveness is taxable income in the year it occurs.

You can change plans once per year, so you do not have to commit forever. If you start on an income-driven plan and your income rises, you can switch to Standard and pay off the loan faster. Log into your servicer's website or call them to select your plan before your grace period ends.

Set up automatic payments and confirm your payment method

Most servicers offer a small interest rate reduction — usually 0.25 percent — if you set up automatic payments from a bank account. This means your payment is deducted on a date you choose each month, and you never have to remember to pay. Automatic payments also protect you from late fees and credit damage if you forget.

Log into your servicer's website and look for "autopay" or "automatic withdrawal." You will need your bank account number and routing number. Choose a payment date that falls a few days after you typically receive income, so the money is in your account when the payment processes.

If you cannot set up automatic payments, you can pay online through your servicer's website, by phone, or by mail. But manual payments require you to remember every month, and one missed payment can trigger a default notice and collection calls. Automatic is safer.

Handle private loans separately from federal loans

Private student loans are not serviced through studentaid.gov and do not have the same protections as federal loans. You cannot switch to an income-driven plan, and there is no automatic forbearance if you lose your job. Contact your private lender directly — the company name should appear on your credit report or in your email — and ask about their repayment options.

Some private lenders offer deferment or forbearance if you face hardship, but these are discretionary, not may provide. Ask what documentation they need and whether interest continues to accrue during the deferment period. Set up automatic payments with your private lender just as you would with a federal servicer.

If you have both federal and private loans, prioritize federal loans first because they have more flexible repayment options. If money is tight, you can pause federal payments through forbearance or income-driven plans, but private lenders have fewer options.

Make a payment schedule and track what you owe

Write down the due date for each loan and the minimum payment amount. If you have multiple loans with different due dates, you might consolidate them onto one date by contacting your servicer. Some borrowers prefer to pay all loans on the same day each month for simplicity.

Keep a running record of what you have paid and what you still owe. Your servicer provides a statement, but you can also log into studentaid.gov anytime to see your federal loan balances. For private loans, check your lender's website or app monthly to confirm the balance is decreasing.

If you receive a tax refund or bonus income, consider putting it toward your loans — even an extra $50 or $100 per year reduces the total interest you pay. But do not skip your regular payment to save for a lump sum; consistent monthly payments protect your credit and keep you out of default.

Know what happens if you miss a payment

A payment is late if it arrives more than 15 days after the due date. Late payments damage your credit score and may trigger a late fee from your servicer. After 90 days of missed payments, your loan goes into default, which means the entire remaining balance becomes due immediately and your servicer can begin collection efforts.

If you know you cannot make a payment, contact your servicer before the due date. Federal loans offer forbearance (temporary pause) or deferment (delay) if you are in school, unemployed, or facing hardship. Private lenders may offer forbearance, but it is not may provide. Asking for help before you miss a payment is far better than dealing with default.

If your loan is already in default, you can rehabilitate it by making nine on-time payments within ten months. After that, the default status is removed from your credit report, though the late payments remain. Rehabilitation is available for federal loans; ask your servicer about the process.

Frequently Asked Questions

Do I have to start paying during the grace period?

No. Federal loans have a grace period where payments are not required. However, interest still accrues on unsubsidized loans during this time, so the balance grows. You can choose to pay during the grace period to reduce the total interest, but you are not required to.

What if I cannot afford my monthly payment?

For federal loans, you can switch to an income-driven repayment plan, which bases your payment on what you earn rather than the loan balance. You can also request forbearance or deferment if you face hardship. For private loans, contact your lender to ask about hardship options, though they are less standardized than federal programs.

Can I pay off my loan early without a penalty?

Federal loans have no prepayment penalty, so you can pay extra or pay off the entire balance anytime. Most private loans also have no penalty, but check your promissory note or ask your lender to confirm. Paying extra reduces the total interest you owe.

What is the difference between deferment and forbearance?

Deferment pauses your payments and stops interest from accruing on subsidized federal loans. Forbearance also pauses payments, but interest continues to accrue on all loan types. Deferment is generally better, but you must meet specific criteria (like being in school or unemployed). Forbearance is more flexible and available in more situations.

How do I know if my loan is in default?

Your servicer will send you notices if you miss payments. After 90 days of missed payments, your loan officially enters default. You can also check your credit report at annualcreditreport.com to see if any loans are listed as in default. If you think your loan is in default, contact your servicer immediately to discuss rehabilitation options.