When you borrow money, it eventually has to be repaid. Every loan comes with a set of repayment terms which include:
Other information you will need to know is the name, address and phone number of your lender and what happens if you are late or fail to make a payment. It is your responsibility as the borrower to communicate with your lender (or lenders) and to keep them informed of your most current contact information.
The best way to monitor your student loan borrowing is to determine what your monthly payment will be each time you agree to borrow. Financial calculators are available on the internet and they are easy to use. Try this example from Finaid.com. When you use this calculator you can also choose to see the payment schedule (amortization table). This will show you how much interest your debt will cost you over the life of the loan.
Remember - student loan interest rates are variable, and although they have been as low as 3.42%, Federal student loans can go as high as 8.25% — and that can mean a big difference in your monthly payment!
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