How to make your first student loan payment

Core Insights - The end of grace periods for spring graduates signifies that student loan payments are due soon, with federal loans typically offering a six-month grace period while private loans vary in terms [1][2] Group 1: Loan Servicing and Management - Confirming the loan servicer and creating an online account is essential for managing student loans effectively, as the servicer may differ from the original FAFSA or school paperwork [3][4] - Setting up an online account provides access to critical information such as balance, interest rates, and payment due dates, which is more reliable than paper statements [5] - Federal borrowers are automatically enrolled in a standard 10-year repayment plan, but income-driven repayment (IDR) plans are available to reduce monthly payments based on income [6] Group 2: Payment Strategies - Enrolling in autopay can reduce the risk of late payments and typically offers a 0.25% interest rate discount, which can lead to significant savings over the loan's life [7] - It is important to double-check banking information before autopay activation to avoid failed payments and potential credit damage [8] - Making the first payment manually may be necessary if autopay does not activate in time, and confirming the payment was applied correctly is crucial [10] Group 3: Best Practices for New Borrowers - Understanding the breakdown of interest and principal in payments can help borrowers see the impact of extra payments on total interest costs [11] - Small additional payments toward the principal can save significant amounts in interest and shorten repayment timelines [11] - Updating contact information with the loan servicer is vital to avoid missed bills and potential late fees [11] - Applying for an IDR plan early can help manage payments if the standard amount feels unmanageable [12] - Temporary relief options like deferment or forbearance can pause payments but may increase total loan costs due to accruing interest [12] - Revisiting monthly budgets to identify areas for cost-cutting can free up cash for loan payments [12][13]